And a cherry on top…

June 22, 2005

When Niku (NIKU) announced two weeks ago that it was being acquired by Computer Associates (CA) for $21 a share, the stock, which had been hovering around $15, shot up by 25%. But shareholders weren’t the only ones smiling.

CEO and President Joshua Pickus also cleans up — in more ways than one. In the proxy material, Niku spells out the various ways it will pay Pickus:

— a $2 million transaction bonus
— a $500K retention bonus
— a $500K consulting payment
— a $1 million non-competition payment

But what’s particularly odd about the latter two payments is that Pickus, 44, plans to take a job with Computer Associates as a senior vice president, though the proxy notes that they’ve yet to come to terms. Still, given that his salary last year was $312K, the fact that he’s getting more than 10 times that, plus a job seems like a pretty sweet deal. And that doesn’t even include the options — including 50,000 @ $10.82 a share that he received last year — that vest immediately.

Granted, it’s not quite as sweet as the deal that Toys R Us (TOY) executive John Eyler is getting — a number which varies from $46.4 million to $65 million depending on whether you believe the WSJ (no link) or this article in the Times. When I wrote about Toys R Us a few weeks ago, I picked a number squarely in between the WSJ and NYT based on my reading of the filings: $55.97 million, which just reinforces the fact that SEC filings are often as clear as mud.

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