Texas Roadhouse Inc. on Friday outlined the separation agreement with its former chief operating officer and increased pay for remaining executives, according to documents filed with the Securities and Exchange Commission.
The Louisville, Ky.-based company, parent to the Texas Roadhouse brand as well as Bubba’s 33 and the fast-casual Jaggers, had announced on Nov. 29 that Douglas Thompson would retire from his COO post immediately.
In an 8-K filed with the SEC Friday, Texas Roadhouse said it agreed in the separation agreement and release of claims to pay Thompson $4.7 million in three installments of nearly $1.6 million by Dec. 27, Jan. 31 and March 14.
“The separation agreement also provides a general release of all claims by Mr. Thompson and affirms certain obligations under his 2021 employment agreement, including, without limitation, obligations pertaining to confidentiality, non-competition, non-hire, and non-solicitation,” the company said.
Texas Roadhouse’s compensation committee on Dec. 6 also adjusted agreements with its top executives, increasing base salaries and awards.
“Based in part on the recommendation of a third-party compensation consultant recently retained by the compensation committee, the total compensation package established for each executive officer for their 2022 fiscal year service reflects a shift in the compensation breakdown among the base salary, bonus and equity components to a more weighted emphasis on cash compensation,” the company said in its filing.
Effective Jan. 8, the board adjusted the base salary of Jerry Morgan, CEO and president, to $1 million annually along with new incentive and stock awards. Annual $500,000 base salaries were approved for: Tonya Robinson, chief financial officer; Chris Jacobsen, chief marketing officer; Chris Colson, general counsel; Gina Tobin, chief learning and culture officer; and Hernan Mujica, chief information officer.
Texas Roadhouse, founded in 1993, has more than 650 restaurants in 49 states and 10 other countries. It began franchising the fast-casual Jaggers concept in September. It launched Jaggers in 2014.
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