On stone crab claws and DMV fees…

June 22, 2007

images-21.jpegEveryone else will be talking about Blackstone (BX) today. How big it is! How much money Steve Schwarzman made today! How he plans to celebrate by eating $80 stone crab claws (as opposed to the meager $40 claws during his pre-public days) for lunch today, even though stone crab season ended last month. Of course, with that much money, you can probably create your own season!

But here at footnoted, we’d prefer to focus on something a tad bit smaller. Last night, Sycamore Networks (SCMR) filed its 10K which spelled out the terms of employment for John Scully, who had been in charge of worldwide sales of Eastern Research when Sycamore bought Eastern last year and now has a similar role at Sycamore. Take the relocation agreement for example. It actually spells out that Scully will be reimbursed for his “driver’s license fees, automobile registration fees and utility hook-up fees”.

We don’t know how much it costs to get your electricity turned on these days, but a quick skim of the fees listed on the Massachusetts DMV site shows that a new registration costs $36 and an out-of-state license transfer costs $40 (good for five years). That means that the company probably spent more on having some lawyer add those words to the contract — one can only imagine the executive refusing to sign on unless his car registration fees were paid for — than it will spend on covering the actual fees! Perhaps he should have demanded a single Schwarzman-esque stone crab claw, instead!

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