Here’s your hat…

June 16, 2004

Something seems a bit fishy about Chairman and CEO Gary Mulloy’s speedy departure from Advo (AD), which the company announced on Monday. For one, he was just re-elected to the board in January. For another, his employment agreement didn’t expire until the end of the year. And the severance agreement, which will provide Mulloy, 58, with salary and bonuses for the next two years as well as his housing allowance and a $50,000 one-time payment for office space and administrative support, was inked the same day that the resignation was announced. Normally, there’s a bit of a gap between the two. An Advo spokesman was quoted as saying they couldn’t come to terms on the employment agreement. But there was still another six months to work things out and it’s not uncommon for a CEO to continue working even after the expiration date. Several months ago, Advo’s CFO, who hadn’t been on the job all that long, also resigned suddenly, which adds another layer of intrigue. Sounds to me like a case of here’s your hat, what’s your hurry?

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