More than 5 million reasons…

August 29, 2005

Late Friday, a footnoted.org regular spotted this 8-K from T-3 Energy Service (TTES) that provides a hefty incentive to CEO Gus Halas, provided he can find someone to pay $20 a share for the company by the end of December. Under the amended employment contract, Halas will collect $5.2 million in a “transactional bonus”, or nearly 15 times his annual salary. If the company fetches less than that, Halas will still collect a bonus, albeit a smaller one based on a formula spelled out in the agreement.

Given that kind of incentive and the fact that T-3 stock is currently trading at around $12 a share, it might seem tempting to press the buy button. But remember that approximately 86% of T-3s stock is controlled by a hedge fund, Greenwich-based First Reserve Fund, so it pays to tread carefully.

PS: Sorry for the delayed post this morning. Was having some technical problems accessing filings.

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