Nice work if you can get it…
Back in April, when ShopKo Stores (SKO) announced some management changes, including the resignation of CEO Sam Duncan, who left to join OfficeMax (OMX), it never even mentioned Jack Eugster’s name in the release. Indeed, back when ShopKo said it was going private in a $715 million deal, it noted that Eugster had resigned.
But a preliminary proxy filed yesterday shows that Eugster is not only coming back but that ShopKo will be paying him handsomely for his service. Eugster will serve as interim CEO until a new CEO is named and also serve as Chairman. In addition to the interim job, which will pay him just over $83,000 a month for the next 12 months (even if a replacement comes along sooner), Eugster will collect $500K a year as chairman “and will not customarily be expected to work full-time” according to the filing. He’ll also receive a $250K signing bonus and another $750K in the six months following the completion of the merger.