Perot gets a gross-up…

December 7, 2009

As footnoted regulars know, we hate to pick on the same company twice in a row. Not that we necessarily consider outing the stuff that companies try to bury in their routine filings really picking on someone (or something). But we’re sure that some people see it that way.

Still, the 8-K that Dell (DELL) filed on Friday left us no choice. Though the filing was ostensibly a repeat of the press release that Dell had put out on Thursday announcing the appointment of Ross Perot Jr. to Dell’s board, the filing had some other new disclosures that caught our attention.

The filing noted that Perot Jr. received $952.4 million as a result of the $3.9 billion merger that closed on Nov. 3. Granted, that money was spread amongst various entities, including a limited partnership, his spouse, and the Perot foundation and was a payment for stock owned, which Dell paid $30 a share for.

But then there was the cherry-on-top: a severance payment of $3.9 million, which included a gross-up of $1.1 million. Oh, and another $35 million “cash payment for his Perot Systems equity awards”. Come next September, when Forbes puts out its annual rankings of Richest Americans, that ought to help since in 2009, Perot’s ranking fell to #317 on Forbes’ annual list compared with #205 in 2008.

There’s a Yiddish word to describe this type of behavior: chaza. Given Friday’s filing, it makes the decision last month by Black & Decker’s CEO Nolan Archibald to forgo his severance and gross-up — something we footnoted here — all the more like seeing a unicorn in the filings.

Image source: Sugar Mountain Farm

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