While you were tanning…

September 5, 2006

coyote.jpegHard to know where to begin with some of the filings that came in leading up to Labor Day weekend. But one of our favorites has to be this preliminary proxy filed by Michael’s Stores (MIK) late Friday (at 5:27:39 to be exact). Now Michael’s has been a bit of a frequent flyer here on footnoted — see here and here and here — so it shouldn’t be much of a surprise that they’d choose to file something juicy late on a Friday evening before a long holiday weekend.

Then again, maybe a better word would be something wily, as in investors Charles and Sam Wyly. In addition to the $30 million that the two brothers will receive from the vested and unvested options that they hold, the proxy also disclosed an additional $6 million payment in exchange for a two-year non-compete agreement — an agreement which appears to be disclosed for the first time in Friday’s filing.

Equally interesting about this particular filing is how the company only provided sketchy details on what the top executives will receive in post-merger severance. As we know from last year’s deal for Toys R Us, these numbers can usually get pretty high.

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