The devil is in the details…

May 10, 2004

When Janus Capital (JNS) announced on April 20 that CEO Mark Whiston was resigning, it said that his severance would result in a $17 million charge, or 4 cents a share, during the second quarter. The company also said that Whiston, 42, would receive $5.8 million in cash, including an unspecified amount of money in consulting fees through the end of the year, and $7.9 million in deferred retirement. But in the Q that Janus filed last week, it provided a few more details on Whiston’s exit package. The consulting fees, which require Whiston to devote an unspecified amount of time through Dec. 31, 2004, are $1.2 million. The remaining $4.6 million, minus an unspecified amount for taxes, was paid two days after the deal was signed. The $7.9 million, which Whiston will be able to collect on his 50th birthday, will be invested in up to a half dozen different Janus funds. In addition, Whiston will receive “welfare benefits substantially similar to those enjoyed by Whiston, his wife, and dependents” for the next five years, unless he finds another job first. Judging by the math, those benefits are worth over $3 million. A week after Whiston resigned, Janus announced that it had reached a $225M settlement with regulators in New York, Colorado, and the SEC.

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