Bausch + Lomb Owes Ousted CEO About $75 Million In Cash, Not In Its Quarterly Results
The payout and an $85 million acquisition draw on cash as the parent's CEO runs the eye-health company on an interim basis.
Bausch + Lomb will pay former CEO Brent Saunders a lump sum of about $75 million in cash after he left on October 12, according to its quarterly report filed Wednesday, and none of it is in the third-quarter results. The eye-health company, which makes contact lenses, eye drops and surgical devices, says the separation agreement was signed after September 30.
A payout booked after quarter-end
Saunders and the board mutually agreed to his departure effective October 12, and he also left the board. Under a separation agreement dated October 11, all of his equity awards, vested or unvested, were forfeited and cancelled.
Because the agreement came after quarter-end, the financial statements "do not reflect any amounts related to the Separation Agreement," the filing says. Thomas Appio, chairman and interim CEO, took over on the transition date.
The quarter itself was strong: revenue rose 7% to $1.375 billion and net income attributable to the company was $32 million, against a $28 million loss a year earlier, the earnings release shows. The company also raised its full-year revenue and adjusted EBITDA guidance.
Cash calls for the fourth quarter
The company had $515 million of cash and restricted cash at September 30. For October through December it expects about $130 million of interest payments, $7 million of mandatory debt amortization and about $60 million of capital spending.
On top of that, an October 8 agreement to buy certain ophthalmic surgical manufacturing businesses carries an upfront cash payment of about $85 million, due at closing, which is expected in the fourth quarter. The company says the deal should lift its future margins.
On the revolving credit facility, $100 million was drawn at September 30, leaving $666 million available.
A parent-company CEO in the chair
The filing's forward-looking risks now cite Appio's overlapping role as chief executive of Bausch Health, which held about 87% of Bausch + Lomb's shares as of October 21, along with possible conflicts of interest and strategy changes he may make. The prior quarter's 10-Q was the comparison basis for the filing.
Separately, director Nathalie Bernier resigned in an 8-K filed Wednesday, with accelerated vesting of her restricted share units. The company says her resignation was not the result of any disagreement.
The surgical acquisition is expected to close in the fourth quarter, and the Saunders payment will show up in the next quarter's financial statements.
Sources
- 10-Q Filing — Bausch + Lomb (BLCO) — SEC EDGAR
- 10-Q Filing — Bausch + Lomb (BLCO), Q2 FY2026 filed 2026-07-29 (comparison basis) — SEC EDGAR
- Earnings release (8-K Item 2.02, ex991q3-2026.htm) — Bausch + Lomb, filed 2026-10-28 — SEC EDGAR
- 8-K Filing — Bausch + Lomb, filed 2026-10-28 (Items 5.02) — SEC EDGAR
- Bausch + Lomb Soars 16% on Big Q3 Profit Beat and Raised Full-Year Guidance — Yahoo Finance
- Bausch + Lomb (BLCO) Surpasses Q3 Earnings and Revenue Estimates — Yahoo Finance
- Bausch + Lomb Posts Strong Third-Quarter Performance, Raises Full-Year 2026 Guidance | Financial Post — financialpost.com
- Did CEO Exit Just Shift Bausch + Lomb (BLCO) Investment Narrative? — Yahoo Finance
- Bausch + Lomb: Q3 Earnings Snapshot — Associated Press
