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More than ten times the fun…

Last month, I wrote about a Midwestern bank executive who managed to get 10 times his salary as a result of the merger. This month, another CEO is poised to join the 10 times club: Jose Collazo, CEO of Infonet (IN), though Collazo, 60, is poised to do even better. Although the company has been exploring a merger since 2001 according to the detailed history it included in its proxy last week and the stock has been languishing, Collazo will still end of walking away with $7.9 million once the deal with a subsidiary of BT Group (BT) is completed. Last year, according to an earlier proxy, Collazo made $665K. But that’s really just the beginning. In addition, Collazo also collected $4.5 million on Nov. 30 from InfoNet as part of his employment agreement and BT will pay him another $5.5 million once the merger is completed.

But wait, there’s more. Collazo will also be paid $700K a year for the first two years following the merger and receive annual retention bonuses of $1 million for the three years following the merger. And that doesn’t even include the up to $4.2 million performance bonus that BT is offering. Meanwhile Infonet investors won’t fare quite as well: BT is paying $2.06 a share for Infonet, which is about 1/10 of what the shares sold for during the IPO in December 1999.