Sunpower offers housing assistance to new CFO…
It’s no secret that San Diego is awash in foreclosures. Indeed, Realty Trac lists 18,885 bank-owned homes in the county and another 12,041 in pre-foreclosure. Given that kind of distressed supply, prices have fallen dramatically — about 30 percent, according to this report.
So perhaps it’s not all that surprising that when Sunpower (SPWRA) announced yesterday that it had hired Dennis V. Arriola as its new CFO, the 8K that followed the press release included “up to $500,000 of compensation for loss on the sale of his home”. Arriola, had been CFO of San Diego Gas & Electric and Southern California Gas, the regulated units of Sempra Energy (SRE) and judging by the filing, will be moving to the San Jose area, where Sunpower is based.
Though the contract wasn’t included in the filing, the 8K includes a description of a few other goodies, including a $300K signing bonus, 50,000 options and another 50,000 RSUs, temporary housing for a year, and $100K in relocation expenses. Keep in mind that Sunpower’s stock is down nearly 60% year-to-date.
But as I first reported two years ago, it’s the housing guarantee that sticks out here. That’s because there’s something incredibly ironic about protecting corporate executives — the very people who should embrace capitalism — from market forces.
Image source: Associated Press/Kevork Djansezian
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Posted in Tags: 8Ks, CFOs, subprime |
 3 Comments » |
October 22nd, 2008 at 1:29 am
Now everyone is talking about the American economy and eclections, nice to read something different. Eugene
October 22nd, 2008 at 8:54 am
We have chosen socialism, so not surprising at all
October 23rd, 2008 at 9:36 am
I wouldn’t categorize being able to negotiate in a contract getting a company to underwrite the possible loss on the sale of a home as “protecting corporate executives…from market forces.”
The company is trying to hire an executive and the company makes a decision as to what they are willing to pay (money, perks, etc.) to get the exec. The exec on the other hand asks for whatever it is they think they need to decide to go to the new company.
The “mating dance” that is done results in some things being granted and others refused. Thats how any deal is done. Underwriting the exec from loss on the sale of a home is just another item that is granted/refused as part of the negotiating process.