Ex-CEO gets 2 iPads and more as severance
Here at footnoted, we’re used to companies burying all sorts of weird things in their filings. But an exhibit filed by Marsh & McLennan (MMC) that was just one page of the 312-page 10-K that they filed yesterday definitely caught our attention: former CEO Brian Duperreault, who announced in September that he was stepping down at the end of the year, left with some unusual parting gifts. Specifically, Duppereault asked for and received two iPads, an iPhone, and a Blackberry that the company had purchased for him when he was CEO.
But wait, there’s more. He also will continue to have access to a Bloomberg terminal subscription (cost: about $1,500 per month) through February 2014. That’s a lot of different devices for any one person, even for someone who likes to multi-task, though presumably Dupperreault won’t be using the various devices at the same time.
We went back and looked at Dupperault’s most recent employment agreement that was filed in Sept. 2009 and the agreement clearly says that he won’t receive any severance. But that appears to only be referring to actual money. In addition to the devices, the agreement filed yesterday also provides Duppereault with an office and administrative support at the company’s offices in Bermuda through the end of the year. There’s also a third tranche of 400,000 options granted in 2008 that vest due to the fact that this was a “qualifying retirement”. Duppereault has five years to exercise those options, which should be helpful since the stock is trading at about the same price 4 1/2 years later as when those options were granted.
This isn’t the first time that Marsh has taken an unusual approach when it comes to parting gifts for an outgoing executive. Back in October 2011, we footnoted about the departure of M. Michele Burns, who had been the CEO of Mercer, before Marsh acquired the firm. That agreement gave Burns a pot of money to create a Retirement Policy Center where Burns was supposed to study issues related to retirement. In the press release announcing the new Retirement Center, Duppereault said it would be “focused on increasing national awareness of a critical issue that needs attention… and broaden our reach to support the generation of ideas on retirement for the greater good of our aging population.” We haven’t heard much about the center since, though Burns still uses it on her LinkedIn profile.
Since the think-tank retirement had already been done, Duppereault had to take a more traditional route: an office and support staff in Bermuda, vested options, and a handful of devices to wile away the time now that he’s no longer CEO.
We found some other interesting details in that 312-page filing that are exclusively available to Pro subscribers.