ST. LOUIS (AP) -- Anheuser-Busch Cos. Inc. has released details of an enhanced retirement program that will be offered to certain employees as the brewer looks to cut costs.
The nation's largest brewer announced this summer that it would offer early retirement to salaried employees in the third quarter.
Of the company's 8,600 employees, there are 1,300 who are 55 and older who are eligible for the program. The company expects to reduce its salaried staff by 10 percent to 15 percent.
In a filing with the Securities and Exchange Commission, the maker of Bud Light and Budweiser said it is boosting its retirement plan options for salaried employees who will be at least 55 by the end of the year. All 1,300 eligible participants will now get severance pay worth up to 12 months of their salary, the company said.
In addition, about 360 employees will get enhanced benefits, including payment ranging from 15 months of base salary to twice the sum of base salary. The enhanced program will also include a target bonus and continuation of benefits, according to the filing made late last week.
Of the company's executive officers, only W. Randolph Baker, vice president and chief financial officer, would be eligible for the benefit, the filing said. The company said he would receive more than $2.7 million if he chooses to participate.
Anheuser-Busch expects to realize one-time pretax charges of between $400 million and $525 million in the third and fourth quarters related to retirement and severance costs. Cash expenditures are expected to be between $100 million to $140 million.
Last month the company announced it had agreed to be sold to InBev SA, the Belgian-based maker of Stella Artois, Beck's and Bass. The deal is worth $52 billion.
Shares of Anheuser-Busch fell 5 cents, or 0.07 percent, to $67.95 in midday trading Tuesday.