Aaron’s Inc. founder Charlie Loudermilk will take home $1.5 million a year in his retirement, retain access to company airplanes for personal travel and receive the title to a company car after he steps down as chairman of the board of the the rent-to-own furniture company.
Loudermilk, 85, announced his retirement Monday. It is effective Sept. 14.
In a filing Thursday with the U.S. Securities and Exchange Commission, Aaron’s detailed what Loudermilk will receive upon leaving. In addition to a bonus for the period he worked during 2012, Loudermilk or his beneficiaries will receive an annual salary of $1.5 million for five years.
Aaron’s will contribute $1,000 a month toward Loudermilk’s health care costs and will vest all of his unvested stock, meaning he will have full control of the shares. He will receive $2,500 a month for a personal office for five years, and Aaron’s will provide a part-time assistant for the same period. He will be able to take his furniture with him.
While Loudermilk will not be charged for use of a company plane for up to 40 hours a year, he will have to pay any taxes on that benefit. He will also receive the title of the Aaron’s-owned Mercedes van he uses.
Loudermilk agreed to a three-year non-compete clause. Loudermilk owns about 5.6 percent of the company. As part of the deal, Aaron’s will have the right of first refusal in buying shares of $10 million or more, with some exceptions, for five years.
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