Comments on: And now, severance parking… http://www.footnoted.org/buried-treasure/and-now-severance-parking/ Michelle Leder's guide to what's hiding in SEC filings Fri, 21 Nov 2008 20:11:34 +0000 http://wordpress.org/?v=2.6.3 By: Brennan Browne http://www.footnoted.org/buried-treasure/and-now-severance-parking/#comment-5865 Brennan Browne Thu, 24 Jul 2008 01:59:55 +0000 http://www.footnoted.org/?p=1982#comment-5865 Another, somewhat humorous example of odd severance provisions can be found at Texas Roadhouse [TXRH]. Their Chairman, CEO, and COO each receive a "crisp $100 bill" if they're fired without cause: "The 2007 Employment Agreements provide that, except in the event of a change in control, no severance will be paid to Messrs. Hart, Taylor or Ortiz upon termination of employment, but each is entitled to receive a crisp $100 bill if his employment is terminated by us without cause before the end of the term. " Another, somewhat humorous example of odd severance provisions can be found at Texas Roadhouse [TXRH]. Their Chairman, CEO, and COO each receive a “crisp $100 bill” if they’re fired without cause:

“The 2007 Employment Agreements provide that, except in the event of a change in control, no severance will be paid to Messrs. Hart, Taylor or Ortiz upon termination of employment, but each is entitled to receive a crisp $100 bill if his employment is terminated by us without cause before the end of the term. “

]]> By: Michelle Leder http://www.footnoted.org/buried-treasure/and-now-severance-parking/#comment-5852 Michelle Leder Mon, 21 Jul 2008 16:07:01 +0000 http://www.footnoted.org/?p=1982#comment-5852 Good question. So I went back to the agreement and it doesn't specifically say automobile. Here's what it says: Continental agrees to provide at no expense to Executive a parking space at the Jacksonville, Florida (JAX) airport in a lot that is the same or similar to the lot available to airport-management personnel. Such airport parking shall be provided beginning on the Retirement Date and during Executive's lifetime (so long as Executive maintains a residence within 200 miles of JAX) if and for as long as Continental serves JAX and has such parking available to it. Notwithstanding the foregoing, to the extent that the benefit described in this paragraph 4 and any other miscellaneous separation pay benefits subject to Section 409A of the Internal Revenue Code of 1986, as amended (the "Code"), that are provided to Executive during the six-month period beginning on the Retirement Date have an aggregate value in excess of $15,500, Executive shall pay to Company, at the time such benefits are provided, the fair market value of such benefits, and Company shall reimburse Executive (with interest thereon at the Aa Corporate Bond Rate (as defined in paragraph 3.5(vii) of the Employment Agreement, but determined as of the last day of the second month preceding the first day of the month coinciding with or next following the Retirement Date)) for any such payment not later than the fifth day following the expiration of such six-month period. Good question. So I went back to the agreement and it doesn’t specifically say automobile. Here’s what it says:
Continental agrees to provide at no expense to Executive a parking space at the Jacksonville, Florida (JAX) airport in a lot that is the same or similar to the lot available to airport-management personnel. Such airport parking shall be provided beginning on the Retirement Date and during Executive’s lifetime (so long as Executive maintains a residence within 200 miles of JAX) if and for as long as Continental serves JAX and has such parking available to it. Notwithstanding the foregoing, to the extent that the benefit described in this paragraph 4 and any other miscellaneous separation pay benefits subject to Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), that are provided to Executive during the six-month period beginning on the Retirement Date have an aggregate value in excess of $15,500, Executive shall pay to Company, at the time such benefits are provided, the fair market value of such benefits, and Company shall reimburse Executive (with interest thereon at the Aa Corporate Bond Rate (as defined in paragraph 3.5(vii) of the Employment Agreement, but determined as of the last day of the second month preceding the first day of the month coinciding with or next following the Retirement Date)) for any such payment not later than the fifth day following the expiration of such six-month period.

]]> By: Scott http://www.footnoted.org/buried-treasure/and-now-severance-parking/#comment-5850 Scott Mon, 21 Jul 2008 15:22:55 +0000 http://www.footnoted.org/?p=1982#comment-5850 Did the agreement specifically say a parking spot for an automobile? Perhaps he's asking COA to pick up the tab for a small Cessna Citation he's got parked at the airport itself. Most airports charge by the type of plane, so someone with a 172 is going to pay less than a multi-engine or light jet. I'm surprised he didn't ask for a gas card on his way out too. Did the agreement specifically say a parking spot for an automobile? Perhaps he’s asking COA to pick up the tab for a small Cessna Citation he’s got parked at the airport itself. Most airports charge by the type of plane, so someone with a 172 is going to pay less than a multi-engine or light jet. I’m surprised he didn’t ask for a gas card on his way out too.

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