Now it’s real estate for CFOs…

May 8, 2007

images2.jpegBoston Scientific (BSX) and Ebay (EBAY) may not have all that much in common. After all, they’re on opposite coasts, in vastly different markets and Ebay’s market cap is about twice that of Boston Scientific. But the new CFO of BSX has clearly taken a page from Ebay’s CFO, judging by the employment agreement filed in an 8K yesterday.

That’s because under the agreement, Boston Scientific has agreed to buy two houses from incoming CFO Sam Leno — spending $1.3 million each. That’s a lot richer deal than the one that Ebay CFO Bob Swan wound up with as we footnoted here last summer. It’s not clear where Leno’s other house is located, but one of the houses is in Winona Lake, Indiana. A quick skim of realtor.com turns up this 6,300 square-foot house that judging by the address, is located directly across the street from Leno’s house. So how does Boston Scientific justify spending $1.3 million when a presumably similar house just across the street is listed at $765K?

Once upon a time, this perk would have only been available to the CEO. And it would have been something along the lines of moving the contents of two houses, instead of buying the houses for a fixed price outright. Is this an isolated case? Or does this mean that CFOs are moving up the perk pecking order?

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