Grin and bear it…
Consulting firm Bearing Point’s (BE) CEO and CFO have both stepped down and while the company swears it has nothing to do with a $92.9 million accounting mistake it disclosed on Friday, that doesn’t quite pass my sniff test.
Still, former CEO Randolph Blazer, who’s been running the company since it spun off from accounting firm KPMG in April 2000, should be able to bear up, in part because he’ll collect more than $2.5 million as part of his severance/consulting contract. The company will also provide him with various benefiits for the next two years, including medical, life, and disability. In exchange, he’ll be required to consult no more than 500 hours a year, which works out to a consulting fee of $1,000 an hour.
It’s not clear from the filings what former CFO Robert Falcone will wind up collecting. But considering that Blazer’s exit package is worth more than 2.5 times his annual base salary of $1 million, it’s likely he’ll also be able to bear up. Shareholders, however, haven’t been quite so lucky. The stock, which was already down YTD, has fallen even more sharply over the past few days.