A minor detail…
When Overseas Shipholding Group (OSG) announced back in February that its chief operating officer was stepping down to pursue “other interests” it conveniently forgot to mention that the executive, Robert Cowen, would be collecting $3.7 million in severance on his way out the door. That was buried in the proxy that the company filed last week. Given that Cowen’s salary was $575K a year, the severance seems awfully generous, even considering the fact that Cowen was a long-time employee and the stock has been doing very well lately.
The February press release also failed to mention that Cowen will continue to collect his regular salary for the next two years and also serve as a well-paid consultant earning nearly $48K a month for up to a year after his Jan. 31 resignation, though the 8-K that the company filed in February did include those aspects of the deal. Still, once you add up all the pieces — nearly $100K a month in salary (at least through next January) plus the $3.7 million severance and the fact that Cowen is only 56 — and it quickly becomes apparent that whatever those “other interests” are, they’ll clearly be well-funded.