My Kind of Gardening

Resource Capital Corp. (RSO) has redefined the concept of gardening. In a recent 8-K filing, RSO disclosed new employment terms for Vice President David Bloom. Of course, the terms aren’t that new — the agreement was reached in December 2007. Maybe Resource Capital was tending to its vegetables and forgot about its filings.

It’s a sweet deal for Bloom, particularly the “garden leave” clause. Garden leave, which is more common in the UK, is the practice of instructing an employee who is leaving an employer (following a resignation, or having been made redundant or otherwise terminated) to stay away from work during their notice period. Resource Capital spelled it out in a pretty detailed fashion:

At any time after you or the Company has given notice to the other to terminate your employment, the Company may require that for a period of nine (9) months you will continue to be employed by the Company but will not enter or attend the premises of the Company (Garden Leave), and during such Garden Leave you will not: (a) undertake any work for any third party whether paid or unpaid and whether as an employee or otherwise; (b) have any contact or communication with any client, customer or supplier of the Company; or (c) have any contact or communication with any employee, officer, director or agent of the Company. Notwithstanding such restrictions, during any period of Garden Leave the Company may require you to perform some but not all of your normal duties and to keep the Company informed of your whereabouts so that you can be contacted if the need arises for you to perform any such duties. During any period of Garden Leave you will remain an employee of the Company and the employment shall continue (notwithstanding that you have resigned or been removed from any offices of the Company and you are not entitled to become employed or engaged by any other company, partnership, person or entity in any capacity (whether paid or unpaid). You will continue to be paid your base salary and be provided with employee benefits during any Garden Leave in the usual way (except that you will not be entitled to receive any bonus or commission during any Garden Leave).

I particularly like the part where Bloom is required to keep RSO “informed of his whereabouts”. I imagine he’ll be sitting pretty tending to his garden.

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