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Millennial Media CEO Michael Barrett (photo from Millennial Media website)

Millennial CEO will leave after merger with $2.2M severance

Millennial Media CEO Michael Barrett is expected to leave the company after its merger with AOL Inc. is finalized, and he has a golden parachute compensation package lined up totaling $2.2 million.

U.S. Securities and Exchange Commission filings made public Friday show that Baltimore-based Millennial intends to enter into a severance and release agreement with Barrett that will give him $833,333 in cash, about $1.35 million in stock and $24,000 in benefits when the merger closes.

The companies announced in September that the Verizon-owned AOL would pay about $250 million — or $1.75 per share —  for the Baltimore-based company, which was founded in 2006 and specializes in placing advertisements in mobile apps.

Friday’s filings also show that Millennial’s President of Managed Media Jason Kelly will leave the company with a $1.13 million severance package, including $466,667 in cash, $656,250 in stock and $12,000 in benefits. Marc Theerman, executive vice president for business strategy, will leave with a $1.23 million package, including $352,083 in cash, $864,063 in stock and $12,000 in benefits.

Millennial Media General Counsel Ho Shin will also leave the company, according to the SEC filings.

Neither AOL nor Millennial responded to calls for comment.

The two companies also announced Friday that AOL’s offer to purchase outstanding shares of Millennial, which was set to expire at 11:59 p.m., will be extended until 11:59 p.m. on October 22 “to allow for adequate dissemination of information to stockholders and investor response time” in connection with the most recent SEC filings, according to a joint news release.

“By joining AOL, we will be adding additional mobile expertise to AOL’s growing technology assets,” Barrett said in a statement when the merger was announced. “I am excited by what this acquisition means for our shareholders, our employees and our partners.”

AOL said in a statement last month that by acquiring Millennial it would expand its reach in mobile advertising and have access to more than 1 billion unique users. “AOL is well positioned as consumers spend more and more time on mobile devices, and as advertisers, agencies and publishers become more reliant on programmatic monetization tools,” AOL President Bob Lord said in the statement.