Double-dipping…

October 3, 2006

icecream.jpegBack in July, I noted how ConAgra (CAG) had given its CFO Frank Sklarsky some impressive parting gifts — a package worth nearly $3 million or approximately six times his salary — when he left the company in June, despite being on the job for less than two years. The money included two years of "salary continuance" so that Sklarsky,49, wouldn’t feel pressured to make any hasty decisions about his next job. He was also allowed to keep the $350K signing bonus he received when he joined ConAgra in December 2004.

So imagine my surprise when Sklarsky turned up this morning in this 8-K filed by Eastman Kodak (EK). As Kodak’s newly named CFO, Sklarsky will recieve $600K a year — $100K more than he was making at ConAgra — and he’ll get a whole other goody package from his new employer including 50,000 restricted shares, a $75,000 one-time bonus, up to $500K in enhanced retirement, up to $800K worth of stock and up to another $800K in stock options.

While salary continuance is fairly common among c-level execs, it’s also fairly common for the company doing the offering to include a clause that gives them an out if that person happens to find another job quickly as Sklarsky has done. Because ConAgra didn’t, Sklarsky gets the best of both worlds: a new gig that pays more money than his old one while continuing to collect nearly $20K every other week from his old job.

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