Who knew?

February 1, 2006

When you think about companies that face security risks, chances are that one that focuses on pest extermination probably isn’t at the top of your lists, unless one day cockroaches decide to start fighting back. Yet, in this 8-K filed by Rollins Inc. (ROL) yesterday, that’s exactly why the company said that Chairman Randall Rollins and his brother, CEO and President Gary Rollins, needed to use the company’s aircraft for all travel.

But that wasn’t the only thing in the filing: there were also hefty raises for everyone but Gary Rollins. For example, the CFO’s salary climbed by 40% — not bad for an annual raise — and the Chairman’s salary climbed by nearly 20% to $850K. There was also the item that indiviudal bonuses could not exceed $2 million for any one individual.

Granted, the company is considered a “controlled corporation” since the Rollins’ own over 50% of the outstanding stock, which makes the company much like a family business. But investors can still buy the stock, which means that the compensation committee might want to also think about them. Then again, the three directors who sit on the committee have collectively been on the board for the past 105 years, so it’s hard to argue that they’re truly independent.

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