Rosy future ahead for departing PartnerRe exec…

Today, after the market closes, international reinsurance company PartnerRe Ltd. (PRE) will release its 2010 second quarter and half-year results.

Since the crystal ball is still in the shop, we don—t know exactly what the results will be. But we do know — based on an 8-K that PartnerRe filed August 3 — that the company will be writing some big checks in the near future.

The filing, as well as its attachment, a letter dated July 28, 2010, reveal that the company will pay departing executive Albert A. Benchimol more than $6 million after he leaves the company, an event that is tentatively set to occur on December 31, 2010. Benchimol joined PartnerRe in 2000.

Benchimol will remain in his current position through at least September 30. As of October 1, he—ll resign from his roles as CEO of the Capital Markets Group and CFO of PartnerRe Ltd. He—ll also give up his post as a member of the Executive Committee. The company acknowledges that after October 1, it is

——understood and agreed that you shall not be required to devote your full business time and attention to the business of the Company and PartnerRe during this period and you may elect to resign from employment after October 1, 2010 and before December 31, 2010 to accept other employment without losing any of the payments or benefits set forth in this Agreement—

And those payments and benefits are pretty nice.

Between now and then, Benchimol will continue to collect his regular salary ($577,750, according to the Summary Compensation Table in the 2010 proxy), and PartnerRe accelerated all of his outstanding equity awards so that they are fully vested.

But the biggest chunk of money is a $3,475,566 lump sum payment that Benchimol will get when he retires, followed by another $2,524,434 in periodic payments during 2011 (for a total of $6 million). The letter also specifies that —The payments set forth in this Agreement shall not be reduced on account of your subsequent employment by any other person or entity.

In addition, he—ll get a cash lump sum of $962,217 (an amount equal to his Average Annual Incentive) in exchange for signing a general release to the company, as well as a yet-to-be-determined cash equivalent for equity awards that will be paid in March, 2011 based on the current year’s performance results.

And there’s more. PartnerRe agreed to pay Benchimol for 18 months— of insurance premiums, $25,000 for legal fees, and provide subscriptions to a host of economic and insurance publications and up to a year’s worth of outplacement services.

We—ll wait to see how the company did, but we don—t need the crystal ball to tell that Benchimol’s future looks nice and rosy.

Image source: m.gifford via flickr


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