Beverages supplier Coca-Cola Amatil will pay former chief executive Terry Davis $150,000 a year for three years in exchange for him not working for competitors in Australia.
Mr Davis on Monday stepped down as group managing director of Coca-Cola Amatil, to be replaced by Alison Watkins, the former chief executive of grains marketer GrainCorp.
Mr Davis will continue to work out his notice period at Coca-Cola Amatil until August 31, 2014. He will help and advise Ms Watkins as required.
His retirement was announced in March 2013.
Coca-Cola Amatil said it would make a total cash payment of $2.9 million to Mr Davis in respect of his short-term and long-term incentives.
This reflected the pro rata amount of his 2014 target short-term incentive and 50 per cent of the pro rata amount of his target 2012/2014 long-term incentive.
"Mr Davis will be paid $150,000 per annum for a three-year period in exchange for him agreeing not to work, consult or take up board positions with pre-determined competitor companies in Australia," Coca-Cola Amatil also said.
Mr Davis was group managing director of Coca-Cola Amatil for 11 years.
CCA Chairman David Gonski on Monday said he was delighted to welcome Ms Watkins on her first day at Coca-Cola Amatil.
"She comes to us with a wealth of experience as both a CEO and a non-executive director across many sectors including the food and beverage industry, banking and management - and she fully understands the challenges ahead," he said.
Shares in Coca-Cola Amatil finished Monday flat at $11.30.