A bit too bloated?

November 20, 2006

man.jpegThough it’s been a long time since we last footnoted Casual Male (CMRG), it’s reassuring to know that the company’s consulting contract with Jewelcor Management, a private company owned by Casual Male’s chairman, Seymour Holtzman, is still bouncing around. In the Q that Casual Male filed on Friday, it noted that Jewelcor’s annual consulting fee was raised to $512K a year — a 28% increase over 2005, which itself was a nearly 30% increase over 2004. The consulting contract, which was originally entered into in April 2003, expired in April 2006, when it was renewed for a second three-year term. In addition to the fees, Jewelcor also received a $375K bonus — next year’s bonus was set at between $460K and $862K based on EBITDA targets — and an additional $320K for the reimbursement of legal fees.

To be fair, Holtzman owns nearly 16% of Casual Male’s outstanding stock, so he has some skin in the game, so to speak. And the company has done well over the past few years, which more or less corresponds with the consulting agreement. But then again, that could just be due to expanding waistlines — Casual Male’s target audience is the big and tall customer and in this one area of North Carolina nearly 75% of residents fall into that category — rather than any brilliant managerial moves.

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