Genworth Financial, a life and mortgage insurer, has agreed to pay a sum of $2.25m to its former chief executive Michael Fraizer, as part of an separation agreement.
Fraizer, who has been associated with the firm since 2004, stepped down as CEO after the company recorded weaker-than-expected results earlier this month.
Genworth's Australian mortgage insurance unit has been facing huge losses and to free up capital to buy back shares, the company intends to float part of it in an initial public offering in early 2013.
According to Reuters, the company said in a regulatory filing that Fraizer's 400,000 previously vested and outstanding stock appreciation rights (SARs), with a base price of $2.46, and 433,334 SARs with a base price of $7.80, can be exercised until 29 June 2013.
Martin Klein is currently acting as CEO until the company finds a replacement.