Like rotting chopped meat…

Yesterday, CKE Restaurants (CKR) announced that its Chairman, William Foley, was stepping down immediately to pursue “pressing business and personal commitments” — a spin on the more typical “personal pursuits” line.

But the fast-food chain which operates more than 3,100 stores including Carl’s Jr. and Hardees isn’t exactly sending Foley into the wilderness without a survival pack. Along with the resignation, the company announced that they were buying Foley’s 1.7 million options for $11 million, or approximately $6.50 a share.

Still, the math doesn’t quite add up given that the stock is currently trading at over $13 a share. Why wouldn’t Foley, who as of the May proxy owned 3.2 million shares of the company, simply cash in the options, which with the exception of 49,000 shares, were fully vested? Why would the company agree to the $11 million charge instead? There’s no info in the filings on the exercise price on Foley’s options, but something smells like rotting chopped meat here.