An inverse relationship?

February 23, 2006

Over the past two years, Atari’s (ATAR) stock price has gone down. Yet, as an exhibit to the Q that Atari filed yesterday shows, the amount of money investors are forking over to cover Chairman and CEO Bruno Bonnell’s rent keeps going up.

When the agreement was first inked in April 2004, Atari was paying $7,600 a month in rent. In 2005, it rose to $8,300 a month. And now, it’s an inexplicable $12,200 a month. Even by Manhattan standards, $12,200 a month (plus a gross-up for taxes, of course) buys you a pretty nice pad. A quick glance at Atari’s most recent proxy shows that the company spent $187K in 2005 to provide a roof over Bonnell’s head.

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