What’s in a name?

April 28, 2004

In certain circles, New York drugstore chain DuaneReade (DRD) had been called DuaneGreed, mostly by its customers and its employees who even went to far as to create this website DwayneGreed.com. But last month, an article in BusinessWeek noted that some large investors unhappy with the $17 a share deal to take the company private, have also begun to use that name. In the amended K the company filed on Monday, it’s not to hard to see why. The revised K includes some proxy-related information since the company has yet to file its proxy statement because of the pending deal to go private. Several of the top executives received at least a 20% raise over 2002, with the senior vice president for sales and marketing getting a whopping 36% raise. CEO Anthony Cuti, who only got a 13% raise last year, received 32.8% of all stock options granted last year. But wait, there’s more: if Cuti’s employment doesn’t continue beyond Dec. 30, he stands to walk away with approximately $20 million. That’s in addition to all of those options. The deal to take DuaneReade private is expected to close sometime this quarter. But given what’s disclosed in the revised K, it’s hard not to imagine some institutional investors getting even angrier.

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