Before the ink on CEO’s contract can even dry…

October 4, 2011

Even for those of us who think we know a thing or two about social media, staying on top of the various streams — Twitter, Facebook, and LinkedIn (to name a few) — can be something of a full-time job or at least a significant amount of multi-tasking. As I’m typing this, I’m also keeping track of my Twitter stream and making sure that my inbox (with 5 different email addresses) doesn’t get too out of control. So perhaps we can excuse Raymond Hill, the newly minted CEO of Pharmaceutical Product Development (PPDI) for being too busy to update his profile on LinkedIn.

Then again, it was just a few short weeks ago that PPDI announced the appointment of Hill as the company’s CEO via this 8-K that was filed on Sept. 22. We didn’t pick Hill or PPDI out of the blue. Yesterday, the company announced that it was being taken private in a $3.9 billion deal by private equity firms, The Carlyle Group and Hellman & Friedman. If you read the press release carefully, you’ll notice that there was no mention of Hill at all, which seems kind of odd to us, given that he is the company’s CEO. We think it’s a pretty safe bet that some PR person would have whipped up a nice quote for Hill if he was planning on sticking around.

Because the Sept. 22 filing did not include Hill’s employment contract, we only have the broad-brush outline to try and parse. Still, it looks like his 2 1/2 weeks on the job could be one of the most lucrative (not to mention shortest) stints we’ve seen here in 8 years of footnoted. As spelled out in the 8-K, Hill’s salary was set at $575,000. In addition, he received 30,000 RSUs and 150,000 options. While this Form 4 notes that the 150,000 options vest in three equal increments starting next year, the Sept. 22 filing seems to indicate that the options vest immediately upon a change in control. Doing some quick back-of-envelope math, we calculate that Hill stands to make over $5 million just on the stock and options. Did we mention that this was for 2 1/2 weeks of work?

There’s also 2.99 times his salary, or $1.7 million, and two years of benefits, if he is let go after the deal. Granted, the numbers may change a bit once the contract is actually filed. But it appears that Hill’s 2 1/2 week stint as CEO could be worth close to $8 million. With that kind of money, Hill should be able to hire one of the many LinkedIn service companies that offer to update the profiles of busy, but social-media conscious executives, including CEOs looking for their next lucrative gig.

Image source: Inkwell Bookstore

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