The Pantry's new CEO, Dennis G. Hatchell, will receive an initial starting salary of $750,000 and shares of restricted stock that is currently worth $436,000.
The Cary-based convenience store chain detailed Hatchell's pay package in a regulatory filing this week.
Hatchell will also receive shares of performance-based restricted stock and a signing bonus of $46,100.
For fiscal year 2012, he will receive a cash bonus equal to either $475,500 or, if its greater, the amount he would receive under the company's bonus plan for senior executives.
Hatchell will receive a $3,000 a month living allowance for two months and will be paid $150,000 when he purchases a residence in Cary. He'll also receive up to $25,000 for legal expenses related to the negotiation of the agreement.
Hatchell, 62, starts his new job March 5.
He was previously vice chairman of Alex Lee, a North Carolina-based holding company for Lowe's Food Stores, Merchants Distributors and Institution Food House.
He takes over from Edwin Holman, interim CEO since Terrance Marks resigned in October to become the CEO of the Hooters restaurant chain.
Marks received $1.5 million in compensation in 2010.
Holman will remain chairman of the board. Hatchell also joins the board.
The Pantry has more than 1,600 stores throughout the Southeast, primarily under the Kangaroo Express brand.