Lose the Gulfstream, gain $6 million…
While there were lots of interesting filings late Friday, when the world (myself included) was distracted by the Iphone/Ibrick, the 8K filed by United Rental (URI) rose to the top of the heap. United, as some people probably recall, announced in April that it was putting itself up for sale, resulting in a nice little pop for the stock.
Though there hasn’t been much additional news on where the sale stands, it must be progressing. How else to explain the board’s decision to cancel the company’s “aircraft fractional ownership interests”, which Chairman and former CEO Bradley S. Jacobs had seemingly unlimited access to. In exchange, United will give Jacobs $6.1 million, which the company says will result in a three cents per share charge. The company explains the payment, which it says includes a gross-up, as part of an extension of Jacob’s non-compete from 12 months to 18 months. But what’s really odd is that a quick skim of the most recent proxy shows no disclosure on just how much Jacobs personal use actually cost the company, so investors have no way of knowing if the $6 million is a good deal or not.
And now a quick programming note: I’ll be on CNBC at 11:40 eastern today to talk about perks offered to the spouses of top executives. There’s a link to the video here.