The big secret…

February 16, 2006

Last spring, King Pharmaceuticals (KG) entered into a retirement and consulting agreement with its then CFO, James Lattanzi, who stepped down on June 1. While King filed this exhibit in its June 30 Q, it deleted most of the interesting details involving Lattanzi’s agreement, most notably what the company would be paying him. Then, in November, King filed this amended agreement that extended the 2 year-consulting agreement for another 6 months. But still, the $$$ being paid to Lattanzi were left out. Then, late yesterday, King filed this amended agreement which added in the good stuff: King will pay Lattanzi $33K a month during the first year, $28.3K a month during the second year, and $29.1K a month for the final six months. Though he’ll make more during those final six months than he will during the second year of the contract, he’ll only be required to work 10 hours a week, instead of 20. Of course, the real question is why King tried to hide this in the first place. As regulars know, these sorts of agreements are literally a dime a dozen. So the idea of King trying to redact this information is pretty ridiculous. Indeed, as King noted in yesterday’s filing, the SEC basically told them this: fuggedaboutit.

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