Meet Omaha’s newest multi-millionaires…
Back in May, West Corp. (WSTC), which operates call centers and debt collection agencies announced that it was going private in a $4.1 billion deal. But the biggest beneficiaries of the deal that offered investors a modest 13% premium on the stock are the company’s top executives, according to the proxy West filed earlier this week.
CEO Thomas Barker stands to receive nearly $50 million in stock. President Nancee Berger will receive another $21 million, with the remaining 16 top executives splitting roughly $30 million between them. According to the proxy, Barker is also set to receive another $10 million in severance and another $2.2 million if he hangs around for another year post-deal.
While these amounts may not come close to Omaha’s most famous citizen, it’s not a bad chunk of change, particularly given the lower cost of living in Omaha. But whether the deal was a good one for West shareholders is a much more difficult question. Only a month before the deal was announced, West closed at $49.52, or about a buck more than investors will receive as a result of the buyout.
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 3 Comments » |
September 21st, 2006 at 12:10 pm
wow. think the shareholders willl cry foul?
September 22nd, 2006 at 8:55 am
Hard to say. Based on my quick read of the filings, which shows the West family voting their large chunk of shares, it probably won’t make much of a difference.
September 22nd, 2006 at 5:13 pm
Don’t bet the store on a “lower cost of living” in Omaha. I was there last weekend. The property taxes would make those in Westchester County blush. They’ll just take your breath away. There are also lots of houses priced well into 7 figures. We stayed at one that’s worth about $600K, and property taxes are north of $15K. And that’s before you get to state income taxes, sales taxes, and sky-high casualty insurance rates because of the horrific weather.
Speaking of which, we had the pleasure of hearing tornado sirens going off all over town several times on Saturday night. That was after two days of intermittent cycles of rain, sunshine, and 50 mph wind. We even drove past the Oracle of Omaha’s house on our way to a party. Modest, indeed.