A lot of dough…

January 18, 2005

Krispy Kreme’s (KKD) CEO finally got around to “retiring” today. And while the 8-K notes that Scott Livengood,52, won’t be receiving a large severance package as allowed for under his employment contract, he’ll still wind up in a lot better shape than many Krispy Kreme investors. For the next six months, the company plans to pay Livengood $45,833 a month to consult for up to 40 hours a week — the same amount he was making when he was CEO and he was presumably working a lot longer — and will automatically extend for another six months. The company will also cover various other expenses, including computer equipment, support services and perhaps even office space since the agreement notes that the work does not have to be done on premises. And then there’s the stock options: 330,125 shares vest immediately and the terms on the remaining 1.38 million options — most of which are presumably underwater, will remain exercisable for the remainder of their term.

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