Sounds harmless enough. What the press release blithely ignores is that Wood is afforded the opportunity to earn an additional year of salary ($625,000)—for just being available twenty percent of working time—to help Berg, 19-year veteran of the company (who already has tenure in corporate finance, treasury, and tax matters), during the alleged transition period .
"It’s just egregious!" When one reads an article on excessive exit packages for top executives in any of a number of leading publications—BusinessWeek, Forbes, or The Wall Street Journal—prominent chief executives oft-mentioned include Home Depot’s Robert Nardelli, Pfizer’s Hank McKinnell, and ExxonMobil’s Lee Raymond, who took home a respective $225 million, $200 million, and $357 million in severance.
Activist shareholders who traditionally have advocated for more curbs on executive pay might want to sharpen their 'say-on-pay' pencils to include those little-noticed compensatory good-bye packages awarded to hundreds of departing top executives like Phoebe Woods, too.
Editor David J. Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.