Better late than never?

Mercury Air Group (MAX) recently disclosed that its Chairman of the Board, Dr. Philip Fagan Jr. has an annual consulting contract that pays him $350,000 for his services. The only problem is that the contract has been in place since July 2000. Another interesting tidbit about that salary: it’s paid to a company called CFK Partners, whose 3 partners include Dr. Fagan as well as CEO Joseph A. Czyzyk and another board member, Frederick H. Kopko, Jr. CFK Partners owns approximately 25% of Mercury. So who’s negotiating with whom here, if say, Mercury wants to renegotiate the contract? Dr. Fagan has been a director of Mercury since September 1989. The recent disclosure on the salary means that in online company profiles, like the one in Yahoo! Finance, it looks as if Dr. Fagan isn’t being paid for serving as chairman, which could leave a certain favorable impression in the eyes of most investors.