Boyce will maintain his place as chairman and chief executive officer of Peabody Energy until the end of 2014, as previously agreed, but will now remain as an executive chairman until the end of 2015, or at least until a successor is named.

Released in a US Securities and Exchange Commission filing, the April 29 transition agreement between the company and Boyce said that the CEO’s compensation for next year would remain unchanged, even if his replacement was appointed during the year.

However in 2015, Boyce’s base salary will be cut to $900,000 from the current rate of $1.25million a year.

Boyce’s total compensation last year was $9.49m, including bonus, incentive pay and stock options.

Under the terms of the new agreement, his target bonus opportunity will also be reduced, from 120% to 100% of base salary in 2015. And his maximum bonus opportunity will get cut to 200% of base salary from the current 240%.

Boyce is also eligible for three grants of restricted stock units, each valued at $1 million.

According to the agreement, if Boyce is terminated without cause during 2015 he is entitled to a pro-rated bonus. The appointment of a new chairman and CEO, or a decision to move the company headquarters more than 50 miles from either St Louis or Phoenix, would be deemed a termination without cause, the filing states.

Boyce has been a Peabody director since March 2005, was named CEO in January 2006 and elected chairman of the board in October 2007. His prior employment agreement became effective on December 31, 2009.

Boyce is a prominent figure in the international coal industry and serves on a number of boards, including the Coal Industry Advisory Board of the International Energy Agency, National Coal Council and National Mining Association.