Till death do we part…

October 7, 2005

That well-worn phrase used to only apply to marriage. But Rent-Way (RWY) has decided to expand the boundaries to include employment agreements too. In an 8-K filed yesterday, the chain on rent-to-own stores added new language that allows COO Gregory Matheny and Vice President John Lombardi to continue working there until either they or the company give two weeks notice or until they die. As of the last proxy, Lombardi was only 39, so the offer of lifetime employments seems a bit strange

Then there’s the immediate vesting of options for both Matheny and evp William Short, which a footnoted.org regular points out. Short gets 75,000 options, Matheny gets 50,000. The shares vest immediately and the company says they are designed to “mitigate the impact of new SFAS 123” rules on accounting for stock options.

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