There were a few things going on last week, most notably a Presidential Election and the continued recovery from SuperStorm Sandy. Throw in the fact that yesterday was a federal holiday and it made for a particularly busy night at the Friday night dump.
Exhibit A was the 8-K that Citibank (C) filed at 5:11 pm (just 19 minutes before the SEC closed for the long weekend) outlining “incentive awards” for former CEO Vikram Pandit and former COO John Havens. While I tweeted it a few minutes after it was filed (so remember to follow @footnoted on Twitter, especially late Friday afternoons) and the news of the $6.6 million (for Pandit) and $6.7 million (for Havens) payments were widely reported, it seems almost like a cliche that Citi would file this when they did. Did they really think that nobody would notice?
Not to be outdone, Lockheed Martin (LMT) filed this 8-K just 7 minutes later, announcing that it’s soon-to-be-CEO, Christopher Kubasik had suddenly resigned. Lockheed’s press release noted that Kubasik had “resigned after an ethics investigation confirmed that he had a close personal relationship with a subordinate employee.” As I also tweeted on Friday, the press release failed to note that Kubasik would receive $3.5 million in separation pay according to the agreement attached to the 8-K despite the fact that the company said he had violated their Code of Ethics.
Last year, we crunched some numbers and found that 8% of all 8-Ks were filed during the last 90 minutes of the day on a Friday. Think about that for a second: in a normal week, the SEC accepts filings 57.5 hours a day and yet so many are filed late in the day on a Friday. Coincidence? That’s highly doubtful!