The SEC filing thesaurus…

June 17, 2005

It’s always interesting when a company comes up with lots of different words to describe essentially the same thing: big payments to an executive post-merger. It happens in even relatively small deals, like Stride Rite’s (SRR) $170 million deal to acquire sneaker brand Saucony (SCNYB). In a recent 8-K, the company uses as least five different words to describe payments due to Saucony Chairman and CEO John Fisher and Vice Chairman Charles Gottesman.

Fisher, whose salary was set at $543K this year, will receive at least $2.86 million post-merger. That’s his “initial payment”. Then there’s the “contingent compensation payment” which the filing notes has yet to be determined. Also mentioned in the filing are “elimination payments” and “excess parachute payments”. Gottesman, who was set to earn $462K this year, will receive $2.4 million under his “initial payment”.

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