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Riddle me this…

What sort of parting gifts should you give to a CEO who lasted just a year during which the company’s stock price fell a whopping 80%? If you’re Dov Pharmaceutical’s (DOVP) board of directors, the right answer is two years of salary plus the ability to keep the 100,000 shares of restricted stock that Dr. Leslie Hudson received when he took the job last July.

While Hudson resigned last week and Dov announced the management shake-up on Wednesday, it waited until late yesterday to file the separation agreement with the SEC. Granted, the agreement wasn’t as lush as some others we’ve seen here at footnoted. After all, Hudson had to give back the 275,000 stock options he received last year — options that we’ll assume are largely underwater. Still, given the situation, it seems like Dov’s board was a tad bit generous here.

Then again, they have a pattern of doing this sort of thing. When Hudson was named CEO last year, the company wound up paying then-CEO Dr. Arnold Lippa $790K in severance and accelerated the vesting of 57,500 options, even though Lippa remained as board chairman. Under this year’s management shake-up, Lippa is now executive chairman. At least there’s no indication that he collected another severance payment this time around. After all, there’s only so much Dov shareholders can probably stomach!