Priscilla Presley gets a raise…

We thought we had a pretty good understanding of the basic rules of SEC filings, having done this for close to a decade now. But every now and then, we come across a disclosure that just makes us scratch our heads. Take, for example, the 42% raise that CKX (CKXE) granted to Priscilla Presley back in July. Clearly it wasn’t deemed material since the company decided to wait until the proxy it filed last week to disclose that to investors. Here’s how they disclosed it in the proxy:

On February 7, 2005, EPE and EPE Holding Corporation, a wholly-owned subsidiary of the Company, entered into a consulting agreement with Ms. Priscilla Presley securing Ms. Presley’s consulting services in connection with promotion of EPE’s business. Pursuant to the terms of the consulting agreement Ms. Presley was paid $560,000 in 2009. On July 12, 2010, the consulting agreement was amended, effective as of the date of the amendment, to increase Ms. Presley’s annual consulting fee to $800,000. In connection with the execution of this amendment, Ms. Presley received a $250,000 bonus in July 2010.

We’ve searched both CKX’s press releases and its SEC filings since July 12 and couldn’t find any other disclosure about Presley’s raise or the signing bonus. Which raises the question: why wait until November to disclose something that happened in July? By our count, the company has filed 5 8Ks and a 10-Q and amended 10-Q since July, so it’s not as if the company has been in some sort of self-imposed exile. Indeed, the company must have realized that it probably should have disclosed this since it included the same exact disclosure from the proxy in the 10-Q it filed late yesterday.

As we’ve footnoted in the past (see here and here), this company, which is probably best known for American Idol, doesn’t have a problem shelling out the big bucks for brand names. But if you go all the way back to the first time we footnoted CKX, it’s easy to see that shareholders haven’t shared in the spoils: the stock has lost close to 70% during that time.

Image source: CNN


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