McAfee’s pre-deal grant to CFO…

Yesterday saw news of another big merger: the tie up between Intel (INTC) and McAfee (MFE). Between the news release and the conference call and various other merger documents, we counted 13 different filings yesterday. And that’s just McAfee’s filings. Intel had another four. Clearly, that makes for some very busy attorneys.

But one filing that really caught our attention was this 8-K filed by McAfee exactly one week before the deal was announced. We’re sure it’s just an odd coincidence but we found it very interesting that McAfee made some very generous grants of both restricted stock units (RSUs) and performance-based stock units (PSUs) to its CFO, Jonathan Chadwick. According to the filing, Chadwick got 97,500 PSUs and another 125,000 RSUs. That ought to help numb the pain of all those late nights pulling numbers together for a deal, especially given the sharp increase in McAfee’s price once the deal was announced.

Despite those massive amount of filings, we didn’t see anything about whether Chadwick would be keeping his job post-deal. But it’s fairly common for CFOs to lose their job, which could explain the generous grant. Then again, it’s easy to explain the grant because Chadwick only joined the company two months ago, having been the Chief Accounting Officer at Cisco (CSCO). In any event, even if he is out of a job, Chadwick seems to have had pretty good timing on switching jobs. It gives new meaning to Total Protection, one of McAfee’s key products.

Speaking of the conference call, we always find it amusing to hear the analysts who, in theory at least, are supposed to be assessing the deal, voice their congratulations to the executives they’re supposed to be assessing. We counted four analysts who congratulated company executives on the deal.

Image source: McAfee


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