Lord, won’t you buy me a Mercedes Benz?

August 29, 2006

mercedes.jpgOn Friday, Novelis (NVL) had this interesting exhibit filed in its delayed 10-K. It seems that the company had an extra 2006 Mercedes 350 laying around, that we’re assuming was left behind by former CFO Geoff Batt. So Novelis is trying to pass it along to newly named CFO Rick Dobson, who started last month. Batt stepped down as CFO on March 21, but continued to hang around and collected a $410K "one-time retention payment". He officially left the company two weeks ago and will receive two years worth of salary plus moving and relocation expenses to Florida and the cost of shipping some furniture to Canada. But the Mercedes was not part of the deal.

Then again, perhaps the car used to belong to CEO Brian Sturgell, who was canned earlier today. The release announcing Sturgell’s departure didn’t even trot out the tired old "personal reasons" excuse. While it’s still too early to determine exactly what parting gifts Sturgell will wind up with, we’re betting it will be a better deal than the one offered to the CFO. Maybe he’ll get to keep his car.

There’s also the question over whether a company that has spent the last 18 months "addressing significant challenges…including an extensive financial review and restatement" as today’s release noted, should be wasting money on a car whose sticker price starts at nearly $50K.

Leave a Reply

You must be logged in to post a comment.