Long-term consultant…

April 27, 2005

Most consulting agreements, particularly those given to outgoing executives, usually last for three years and sometimes even five. But the consulting agreement that former First Cash Financial Services (FCFS) CEO Phillip Powell entered into with the payday lender runs through December 2014. For the next 10 years, the pawn shop/payday lending company will pay Powell $500K a year, plus provide him with a host of other benefits, including health insurance, a car, and country club membership. That’s the same amount that First Cash is paying Powell’s replacement, new CEO J. Alan Barron. In exchange, Powell is required to do, well, the contract isn’t particularly specific on that front. Unlike most contracts, there’s no token number of hours — say 120 per quarter — that Powell is required to work. The agreement also requires that Powell be allowed to stay in Arlington, Texas and that if the company moves due to let’s say, a merger, the consulting contract remains valid. Granted, Powell,54, will continue to serve as First Cash’s non-executive chairman and he has been involved with the company since 1990. But given the lack of specific duties or time restrictions, it still seems like a lot of money.

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