Business

Former Salix CFO receives $130K in severance

Adam Derbyshire, the long-time Salix Pharmaceuticals employee who resigned as chief financial officer last week, will receive $130,484.60 in severance, the Raleigh company reported in a regulatory filing.

The amount represents the money Derbyshire accrued under his employment agreement that was signed in April.

Derbyshire has also agreed to serve as a consultant for the company through Aug. 23, 2018. He will be an independent contractor working no more than 5 hours a month and will report to and take requests only from Salix’s CEO.

Derbyshire’s stock awards will continue to vest. He owned 218,463 Salix shares as of August, according to regulatory filings.

Derbyshire joined Salix in 2000 and became CFO in January 2009. His tenure came to an abrupt end last week when he resigned hours before Salix reported third-quarter earnings in which it restated inventory levels for a number of its drugs.

Derbyshire had reassured analysts in August that the company’s inventory levels would return to normal in the fourth quarter. Instead, they were revised upward significantly, leading investors and analysts to question the validity of the Salix’s previous earnings reports.

Salix's board of directors has hired outside counsel and formed an audit committee to review the way the company had earlier characterized inventory levels.

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