Computer Network Technology Corp. (CNT) (Nasdaq: CMNT) CEO Tom Hudson is in line for a $3 million termination payout, plus a senior executive position at McData Corp. (Nasdaq: MCDTA), when McDatas proposed $235 million acquisition of its rival switch vendor closes, according to an Securities and Exchange Commission (SEC) filing (see SEC OKs McDatas CNT Filing).
The overall acquisition deal is pending approval of both companies shareholders. They are scheduled to vote May 24, and McData says it hopes to close by the end of July.
According to a document filed by McData this week, the acquisition will terminate Hudsons contract with CNT. His CNT contract calls for him to receive a lump sum payment of 300 percent of his base salary plus 300 percent of the maximum bonus he would receive this year for CNT. The documents estimate that Hudson will receive $3 million upon termination of employment.
He wont be out of work long, though. McData has already agreed to offer Hudson a senior executive post reporting to CEO John Kelley, and he will join the McData board of directors.
CNT CFO Greg Barnum will also cash in for $925,000 after the deal closes. Barnums contract with CNT calls for him to receive a lump sum of 200 percent of his base salary and bonus. His lump sum will total around $800,000.
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