One-time embattled Chipotle CMO resigns with perks
Mark Crumpacker, Chipotle's chief marketing and strategy officer, has resigned effective today, according to an email from the brand's PR director, Chris Arnold.
"Mark has been a valued member of our leadership team and played an integral role in shaping and defining the Chipotle brand, and we thank him for his contributions," he wrote in the email to FastCasual. "We have a very talented marketing team in place and we'll continue our existing programs while we finalize the plans for a new CMO."
Crumpacker has been employed with Chipotle since January 5, 2009, and on or around Jan. 5, 2018, he entered into a Retention Agreement, whereby he would receive a "Retention Bonus" of $600,000 for remaining continuously employed with Chipotle through Jan. 5, 2019. That Retention Bonus would vest if Crumpacker was terminated without "cause," which is what happened, according to a U.S. Securities and Exchange Commission filing.
Crumpacker's day-to-day obligations and responsibility stop today, but he will remain employed through March 15. He'll receive a cash severance of 26 weeks of pay at his base salary and related benefits pertaining to post-employment extension of health insurance benefits, according to a document from the U.S. Securities and Exchange Commission. It also allows him a period of 12 months to exercise vested stock-only stock appreciation rights, rather than the 90-day period provided in the award agreements.
The separation agreement also requires Crumpacker to release any legal claims against Chipotle and he may not work for, own or consult in any capacity to any business operating fast casual, quick service or casual dining restaurants in the continental United States, where Chipotle or any of its affiliates conduct business.
In July 2016, Crumpacker was placed on leave for a time and turned himself into authorities after being charged with possession of a controlled substance in New York. The charges were related to allegations he bought cocaine on multiple dates between Jan. 29 and May 14. He later returned to work after a stint in drug rehab.
Topics: Human Resources