Swift VP parts ways for $1 million

STAFF REPORTS

Swift & Co. has reached a separation agreement with its vice president of pork business operations for more than $1 million.

Marshall Ernst's employment with the company ended May 25, but Swift, in a filing with the Securities Exchange Commission on Thursday, agreed to pay Ernst $787,500 in cash over an 18-month period and buy more than 247,000 shares he owns for about $249,900.

The agreement also stipulates that Ernst will provide consulting services to Swift over the 18-month period. Ernst also agrees not to engage in a competing business over the same time.

Sean McHugh, Swift spokesman, said Ted Miller, executive vice president of operations, now oversees all beef and pork operations for North America. Miller, former president of E.A. Miller, joined the corporate office of Swift about a year ago as vice president of beef operations.

In addition to accepting the severance package, Ernst's options to purchase Swift Foods Co. common stock will be vested in full and Swift Foods waived its right to purchase such options. Additionally, in a stockholder's agreement dated Sept. 19, 2002, by and among HMTF Rawhide L.P., ConAgra Foods, Inc., Hicks, Muse, Tate & Furst Inc., Swift Foods agreed to purchase 247,433 shares of Swift Foods common stock owned by Ernst for a purchase price equal to $249,907.33.