Sticking to our knitting…

images2.jpegOn days like this, it’s hard to know whether to stick with the tried and trued footnoted formula of commenting on the pearls buried in SEC filings or provide some zen-like thoughts. But since most readers — at least those who answered the survey back in January — are already pretty zen-like about the market and there’s more than enough commentary on what happened yesterday all over the web, we’ll stick to our knitting.

As proxy/K season continues, readers have been sending in all sorts of interesting things that they’ve been finding in the filings. One of my favorites — and one that resonates with me as I prepare to hit the non-corporate jet skies for speaking gigs in Orlando and San Jose — is this employment contract filed by Federal Mogul (FDMLQ.OB) last week in its K. For each day that Monsieur J. Brunol works outside of France, he’ll receive a bonus — as much as 50% of his salary, or $164K euros, which seems like a lot of money for doing what most top executives do anyway — spend lots of time in an airplane.

Speaking of airplanes — the corporate jet variety, at least — a reader found Morgan Stanley’s (MS) disclosure on John Mack’s personal jet usage pretty interesting: $321K last year. But that was significantly less than the $401K he spent in 2005 and roughly half of what Phil Purcell spent when he was running the show.

Finally, there was the amended Q filed by American Dairy (ADY) which had an interesting footnote that a reader thought sounded a bit magical. According to the note, holders of $3 million worth of convertible debt exchanged that for 399,375 shares at $8 a pop last April. But at the time, the stock was trading at around $15, so the reader wonders why the hefty discount? There’s nothing in the filings that provide any additional detail, other than a cryptic reference to “additional convertible debt issued at the parent company level”.