Schiff CEO has 5 million reasons to hurry

The bidding war over Schiff Nutrition (SHF) ended with Reckitt Benckiser Group’s successful offer last week over Bayer for $42 a share. Yesterday, the deal was approved by regulators, which has to be one of the quickest approvals in history. Now the race is on to complete the deal by the end of the year.

This article in this morning’s WSJ says the race to complete deals like Schiff are due to pending changes to the tax code. We’re sure that’s in play here, but so too is this 8-K that Schiff filed earlier this week.

That’s because if the deal gets done by Dec. 31, Schiff CEO Tarang P. Amin will collect a $5 million bonus. Two other executives — General Counsel Scott Milsten and Chief Marketing Officer Jennifer Steeves-Kiss will also get bonuses, but theirs are less than 1/10 the amount that Amin stands to get.

Another way to think about it is that each day that goes by, Amin stands to make another $147,000, assuming the deal closes by Dec. 31. That’s separate and above any money from severance or stock and/or options that he holds. Yesterday, Schiff filed this preliminary merger proxy, which outlined some of those goodies. For Amin, that means $900K in severance and $29.5 million in stock.

But it’s the $5 million bonus that really jumped out at us. While it’s not uncommon to offer bonuses for getting a deal done, they’re usually given to the folks doing the heavy-lifting and working the long hours –people like the CFO and the General Counsel. To make this deal happen by Dec. 31, there will be plenty of that. But it’s hard to imagine the scenario that requires the CEO to really roll up his sleeves. Still, with an extra $5 million on the line, we suppose that anything is possible.