Odds and ends…

November 11, 2005

There’s been so many interesting things buried in the third quarter Qs this week — not to mention other filings — that in order to get to them all, I’m going to resort to a list. These do not, by the way, include the 20-odd contest entries that were submitted this week. I’ll do a separate post on the top three submissions:

Bait and switch: How often do top executives agree to forgo their bonuses? About as frequently as pigs fly. Which is why this 8-K filed by The Banc Corporation (TBNC) this week is particularly amusing. In a press release, the company notes that the three top executives “will not accept any performance bonus for which they might have been eligible for” which works out to about $450K for the three. But here’s the clincher: the board has agreed to accelerate the vesting of 625,942 options held by the three — options that are worth about $2 million.

The $60K consultant: Though I missed the initial filing on Oct. 20, BlueLinx Corp. (BXC) noted in the Q it filed this week that its former CEO, Charles McElrea, would be paid $58,000 a month in consulting fees for the next two years. Given the stock’s performance since being spun off from Georgia-Pacific (GP) earlier this year, it’s hard to imagine what makes his services so valuable.

Premium plus: While change in control agreements are pretty common, I haven’t come across too many “premium payments” following a change in control. But that’s exactly what a footnoted.org regular says that tiny (market cap: $135 million) BNP Properties (BNP) is giving its top execs, according to this exhibit to the Q filed earlier this week. Executives will get a “lump sum cash payment” equal to the number of shares (and presumably still get to cash in those shares). Based on the current price of $15 a share, that works out to a $2.5 million windfall for the top two executives, or more than seven times their annual salary of $300K. As the footnoted.org regular points out: “with parachutes like these, I hope they take up sky-diving in retirement”.

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