How about option 5: The company has been restructured into eight independent profit centers, each with it's own managment that will follow the vision and leadership of the CEO and there is no Executive Vice President position.
This guy is probably a great guy and well worth the position he had and I am inferring nothing negative against him, but this kind of thing happens all the time in corporate america. It is reducing overhead, where positions and management layers are eliminated at the top of the organization instead of laying off workers at the bottom of the organization.
You know the old saying, "Nothing personal, it's only business", and I have heard it said more times than I want to think about in these times of getting leaner and meaner and more competitive.
This is why guys at that level usually carefully consider whether or not to take a position like that and usually negotiate a golden parachute, as the lateral move is usually not in the company....and maybe not at all.
