Massey Resigns CEO for 2 More Years

The deal, which runs through 2009, leaves Blankenship's salary unchanged from his current one-year agreement, according to documents filed with the U.S. Securities and Exchange Commission. Massey will pay Blankenship $1 million and up to $900,000 in performance bonuses in both 2008 and 2009.

The deal also includes stock options, other bonuses and other perks.

Separately, Massey gave Chief Administrative Officer Baxter Phillips Jr. a raise to $588,000 from $550,000, Chief Operating Officer Christopher Adkins a raise to $378,000 from $274,275, and Chief Financial Officer Eric Tolbert a raise to $228,800 from $180,000.

Massey operates 19 mining complexes in West Virginia, Kentucky and Virginia. The company is the fourth largest coal producer by revenue in the United States.