Todd Teske, who lost his position as Briggs & Stratton Corp.’s chairman and CEO when the prominent Milwaukee manufacturing firm was sold through bankruptcy, filed an $11.66 million claim in the case seeking his share of payments that are expected to be in the range of 7 cents to 8 cents on the dollar.
It’s not clear whether Teske’s claim covers some or all of the payments that would have been included in his $8.8 million “golden parachute” package.
Here is a breakout of his unsecured claim filed Wednesday:
- Key-employee savings and investment plan: $2.77 million
- Supplemental executive retirement plan: $6.3 million
- Long-term incentive payments: $2.58 million
- Pension plan, employment agreement and life insurance policy: Unknown amounts.
Teske and his Milwaukee attorney Timothy Posnanski didn’t immediately respond Wednesday to requests for comment from the Milwaukee Business Journal.
Teske held the position of chairman, CEO and president until Sept 22 when Briggs’ new owner KPS Capital Partners announced Steve Andrews as the company’s new CEO. Andrews had been CEO of another KPS-owned company, International Equipment Solutions, which is based in Oak Brook, Illinois.
KPS submitted the one and only qualified bid at $550 million for the entirety of Wauwatosa-based Briggs & Stratton and now owns it under the name Briggs & Stratton LLC.
Teske, who joined Briggs in 1996 as assistant controller, was promoted to CEO in January 2010 after John Shiely retired. Teske moved into the C-suite in August 2005 when he was named executive vice president and chief operating officer. He was appointed president in September 2008.
The claim from Teske joins numerous others filed by individuals, businesses and organizations stating Briggs & Stratton owes them money. This category of claim is unsecured, so these creditors will receive pennies on the dollar for what they’re owed.
Claims in the case are due by day-end Wednesday in U.S. Bankruptcy Court in St. Louis.
The funds available to unsecured creditors will yield payments ranging from 7 cents to 8.4 cents on the dollar, an attorney for the official unsecured creditors committee said in mid-September. The figure could increase to 10 cents on the dollar if the funds available increase beyond initial projections, said attorney Robert Stark.
Teske was eligible for a severance package that includes $8.8 million in payments and a $3.1 million income-tax "gross up" payment, according to the manufacturer’s latest proxy statement filed in June 2019. The "gross up goes toward covering taxes on the golden parachute consisting of a severance payment, a pension payment, stock awards and other benefits.