This little bunny kept a secret…
On Thursday, Energizer (ENR) announced that it planned to buy Playtex (PYX) for $1.16 billion or $18.30 a share. Both companies filed their respective 8Ks on Friday. (Energizer’s is here and Playtex’s is here).
But unlike some other recent deals, Playtex waited until the day of the announcement to update its change in control agreements for executives, you know, in case something happens to the company, like a merger. Under the agreement, “Tier One” employees, defined by the contract as anyone reporting to the CEO or anyone designated Tier One by the CEO, get some pretty generous benefits.
According to the agreement the top tier executives get two years worth of base salary and bonus. They also get medical and dental coverage for themselves and their family for two years, or until they find another job. Then there are those other perks. Like use of the company car, the value of financial planning services and the value of a health club membership. And of course the company will foot the bill for gross up payments.
Tier Two and Tier Three employees don’t fare quite as well. They only get a portion of their salary, bonuses, profit sharing contributions and outplacement services. And unlike the big bunnies, they have to pay their own taxes.
On a totally unrelated note, be sure to check out what Chris Cox had to say about bloggers in Saturday’s WSJ. I know a lot of bloggers in this space and while I don’t see them every day, I’m pretty confident that most of us get dressed in the morning — just as we assume Chris Cox does.