Bally Total Fitness Holding Corp.(NYSE: BFT) will record a $5.8 million after-tax charge that equates to $.17/share in order to cover a severance package for outgoing CEO Lee Hillman. Two million dollars of that figure relates to stock grants, and another $1.9 million is for cash payments through 1Q03, according to a Dec. 11
announcement.
Other expenses include medical benefits for Hillman and his family through 2005, a $7,500/month allowance for office space and a personal assistant, and gym memberships for Hillman, his immediate family and 25 others through the end of 2005.
BFT shares closed at $8.51 the day before the announcement; they closed at $7.20 on Dec. 13.
Paul Toback, who was COO, will assume the positions of president and CEO.