Ribapharm Execs Would Get Severance

Ribapharm Inc. will have to pay three executives about $4.6 million in severance if they carry out a threat to quit over majority shareholder ICN Pharmaceuticals Inc.’s plan to replace all but one of Ribapharm’s directors.

Ribapharm also may owe the directors extra payments to cover taxes, the company said in a Securities and Exchange Commission filing.

Chief Executive Johnson Y.N. Lau, Chief Financial Officer Thomas Stankovich and General Counsel Roger Loomis said Monday they would resign as early as Jan. 25 unless ICN drops its plan to remove the company’s directors. ICN objects to cash bonuses and stock options awarded to management after Ribapharm’s stock sale in April.

ICN, which owns 80% of Ribapharm, criticized the board last week for not exercising “appropriate oversight over management.” Both companies are based in Costa Mesa.