By Patrick Costello

The former chief executive of Thyssenkrupp AG (TKA.XE), Heinrich Hiesinger, received a multi-million euro payout after stepping down from his position in July, the German industrial conglomerate said Wednesday in its annual report.

Mr. Hiesinger received a severance payment of roughly 4.56 million euros ($5.20 million) based on his service contract, which had been set to run through September 2020, Thyssenkrupp said.

A cap of two years' compensation--including fixed salary and bonus--served as the basis for agreeing Mr. Hiesinger's severance-payment amount, the company said.

The departure of Mr. Hiesinger--who left Thyssenkrupp abruptly under mounting pressure from activist shareholders and only days after the firm agreed to merge its steel business with India's Tata Steel--threw the steel and industrial conglomerate into a leadership crisis.

The company has since appointed former Chief Financial Officer Guido Kerkhoff as Mr. Hiesinger's successor.

Write to Patrick Costello at Patrick.Costello@dowjones.com

(END) Dow Jones Newswires

November 21, 2018 13:07 ET (18:07 GMT)

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