The very long goodbye…

March 8, 2005

Last month — on Valentine’s Day, no less — Star Gas’ (SGU) largest investor sent a love letter of sorts to Chairman, CEO and President Irik Sevin that called Sevin “one of the most dangerous and incompetent executives in America” and said that he had cost investors over $550 million in value. Yesterday, the company announced Sevin’s resignation, as well as that of his mother, Audrey, who sat on the board. And earlier today, in an 8-K, the company included some of the details of their severance packages, which will basically pay Irik Sevin a salary of at least $350K for the next 18 years. Talk about a long goodbye! For the next five years, Sevin will collect $395,000 a year as a consultant and receive $50,000 a year to cover his office expenses and the company will continue to pay for his car and health benefits. Once the consulting agreement ends in 2010, Sevin will segue into a retirement package that will pay him around $30K a month for the next 13 years. And then there’s the Rabbi Trust and Unit Appreciation Rights and some other things that are hard to put a dollar value on. Mom doesn’t fare quite as well — she only gets 26 weeks of salary and a few other things. But then again, she wasn’t called dangerous by Star’s largest shareholder. Who knows? Perhaps that was the key.

P.S.: I’m indebted to a regular reader for pointing this filing out to me. It’s impossible for me to get to every filing, so if you see something interesting, please let me know.

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