Flying into the sunset…

May 17, 2006

Even if you buy the line that CEOs and other top executives need to use the corporate jet for security reasons, say when they’re taking their family to Martha’s Vineyard for the weekend, what possible reason could an ex-CEO have for needing that kind of security?

That’s exactly the question investors in Mylan Laboratories (MYL) may want to ask judging by this revised employment agreement for CEO Robert Coury. The agreement — one of about a dozen revised employment agreements dumped into the K filed late Tuesday — gives Coury continued access to the corporate jet for three years after he leaves the company. That little tidbit is buried in a bunch of legalese halfway through Sect. 8 (c) (ii), just in case you’re in the mood to hunt for truffles. Of course, Coury’s ability to use the corporate jet once he’s gone has a limit: 70 hours a year, which using the math provided in the contract, works out to a perk worth $605K a year.

But here’s the real kicker: if Coury doesn’t use all of that flight time, the company will pay him the difference between what he has used and the maximum amount he’s due, which increases 8% a year. Last year, Coury only spent $131K on his personal use of the corporate jet, so this could work out to a nice little bonus program for a retired executive.

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