Anheuser-Busch (BUD) Approves Enhanced Retirement Program; Sees 10-15% Reduction in Salaried Workforce

August 12, 2008 10:22 AM EDT

In a Form 8-K filed this morning, Anheuser-Busch (NYSE: BUD) announced that it has approved a revised enhanced retirement program to be offered to certain salaried employees. The revised program will provide enhanced pension and retiree medical benefits, as well as severance, to salaried employees who are at least 55 years old as of December 31, 2008.

For eligible participants who are among a group of approximately 360 key employees, the severance benefit will range from 15 months of base salary to two times the sum of base salary and target bonus and will include continuation of benefits. Among the named executive officers of the Company, only W. Randolph Baker, Vice President and Chief Financial Officer, is eligible for this benefit. If Mr. Baker elects to participate in the enhanced retirement program, he would receive a payment of $2,712,152.

As a result of this program, Anheuser-Busch estimates that it will reduce its salaried workforce by 10-15%.

During Q3 and Q4 of '08, Anheuser-Busch expects to recognize one-time pretax charges estimated in the range of $400 million to $525 million for enhanced retirement and severance costs, with associated cash expenditures of approximately $100 million to $140 million.

Anheuser-Busch Companies, Inc., through its subsidiaries, engages in the production and distribution of beer in the United States and internationally.

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