Yeah, but what about the benefits?
Avon’s (AVP) newly hired CFO, Chuck Cramb, must be loving the Avon personal touch. Cramb, a former Senior Vice-President at Gillette, only received $4,526 in “other annual compensation” according to Gillette’s 2004 proxy. Based on his offer letter from Avon, he’ll be getting a whole lot more than that in 2006. In the exhibit attached to Avon’s after-the-bell amended 8-K filing, Cramb will be entitled to the following:
You will be eligible for a 3-year leased car with a $35,000 sticker price. Avon will cover lease payments, insurance, maintenance and gasoline for this car, or you may choose an annual flexible allowance of $9,250. You will also be entitled to reimbursement of annual tax preparation assistance and financial planning up to a maximum of $12,500 per year. In the event that you choose not to avail yourself of both the Company car program and the financial planning allowance, you will be eligible for a miscellaneous allowance of $20,000 per year. You will also be eligible for the home security system and personal automobile and excess liability insurance programs. In addition, you will be eligible for an annual executive health examination.
I guess the 13% pay raise and the “stock option grant with a value of 2X your base salary in November 2005” are just bonuses in the whole deal.