3 Egregious Corporate Disclosures: IBM, Marsh & McLennan, Icahn Enterprises
The three most egregious corporate disclosures during the month of October, as uncovered by the Footnoted team.
- Oct. 26, 2011: The Palmisano equation at IBM: By announcing his retirement after he turned 60, outgoing CEO Samuel Palmisano stands to gain an exit package worth more than an estimated $170 million. That includes roughly $65.7 million in the form of a cash payout for stock options and restricted stock units (including performance-linked RSUs) that are at least a year old but haven’t already vested. He’ll also get $1.5 million per year for life under IBM’s Supplemental Executive Retention Plan; in addition, he’ll get $4.9 million per year in cash for five years and $6.3 million per year for five years in IBM (NYSE:IBM) shares from the company’s deferred compensation program, calculated as of Dec. 31. (His total deferred comp balance then was $56.1 million.) And as of last Dec. 31, Palmisano’s pension plan was worth about $29.8 million, or $3.2 million per year for life.
- Oct. 10, 2011: A serial retiree to study retirement: M. Michele Burns, who had been a senior executive at Marsh & McLennan (NYSE:MMC) until recently, left to study the issues of retirement at a new think tank funded by Mercer. She’ll make $900,000—considerably more than the $40,000 per year average retiree income in this country. Plus, she continues to sit on the boards of Cisco (NASDAQ:CSCO) and Wal-Mart (NYSE:WMT) and was recently appointed to the board at Goldman Sachs (NYSE:GS).
- Oct. 3, 2011: A window into working for Icahn: On behalf of Icahn Enterprises (NYSE:IEP), Carl Icahn locked up deputy Vincent J. Intrieri with $6.5 million in salary and the threat of having to repay a $600,000 penalty if he enters into discussions with a rival hedge fund or tries to start one. If Icahn extends Intrieri’s contract at the end of 2013, he gets an additional $1 million in salary. The noted investor has lost several key members of his team over the past year, and this was a way to ensure that wouldn’t happen again.
Footnoted specializes in surfacing hidden opportunities and early signs of potential problems buried in companies’ SEC filings.