Not bad for a day’s work…

March 21, 2006

Early yesterday, before the markets opened, Michael’s Stores (MIK) announced that is was exploring "strategic options" which sent the stock up over 12%. In the same press release, the company noted that CEO R. Michael Rouleau was retiring and would become a "special advisor to the board". But it wasn’t until after the markets closed that the company filed this 8-K that spelled out the details of Rouleau’s new gig.

In addition to collecting his full salary of $840K through January 2008 for what will presumably be a lot less cumbersome job, Rouleau will also get his company car, plus a tax gross-up to cover any taxes. But the real bounty comes from the stock options. According to the agreement, all options granted prior to August 5, 2005 are now fully vested and exercisable. Michael’s most recent proxy valued those options at $30.14 which given the nice bounce in the stock yesterday, makes for a pretty nifty day’s work.

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