Shotgun wedding?

October 9, 2006

medwedding_right_closeup.JPGBack in June, Banco Bilbao Vizcaya Argentaria (BBVA) announced that it was acquiring Texas-based State National Bancshares (SNBI) in a $480 million deal as well as the larger Texas Regional Bancshares (TRBS) for $2.16 billion. Late Friday, SNBI filed its merger proxy that  disclosed a $5.6 million "advisory fee" that director Mark Merlo would be collecting as a result of the deal. Keep in mind that SNBI only went public a year ago and up until the merger sent the stock up, it wasn’t exactly a barn-burner. The proxy also discloses a bunch of other goodies, including severance payments, hefty tax gross-ups and transaction completion bonuses for several top executives. Given the condensed time line — less than a year from IPO to merger — it kind of makes one wonder about the motivation for going public in the first place.

Speaking of perks and other goodies, Broc Romanek of TheCorporateCounsel.net Blog is running a very interesting survey on what qualifies as a perk. Broc told me that he’ll be running the survey through the end of the year and that it is open to the public, so feel free to weigh in. Some of the results are pretty interesting like the idea that using the corporate jet as a taxi service to pick up directors isn’t considered a perk by nearly 2/3 of those who responded, but that spa services and golf for the spouse of a director are a perk. Pretty interesting.

Leave a Reply

You must be logged in to post a comment.