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updated 15:40, Wed January 02, 2008

H&R Block Ex-CEO Ernst to Get $2.55M Severance Payment

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WASHINGTON (AP) -- H&R Block Inc. said former Chairman and Chief Executive Mark A. Ernst will receive a $2.55 million cash severance payment.

The Kansas City provider of tax, accounting and other financial services said in a filing Monday with the Securities and Exchange Commission that Ernst, who resigned last month as chairman and chief executive, also resigned from the company's board on Friday.

H&R Block said Ernst will also receive continuation of some insurance benefits, the vesting of 762,925 stock options, the lifting of restrictions on 10,000 restricted shares and the payout of about 16,500 performance shares, among other things.

The company also said that William L. Trubeck, who resigned as chief financial officer last month, will receive a $900,000 cash severance payment -- among other benefits -- as part of a separation agreement.

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