/biz/ - Business & Finance

Cap from Kastins Linkedin from 11h ago, Chief Legal officer of BBBY and one of most respected M&A experts in country. This was even acknowledged during hearing yesterday. Dudes getting payed in solely BBBY shares.

He’s the general counsel, he’s not done until the company is under new management or completely liquidated.

Just my food for thought.. worked for a company that was going through bidding process. They couldn’t buy more shares because that would be insider trading. However, every single executive was issued RSU’s by the board for taking a pay cut. The RSU’s were issued at the stock price at the time and they made 2.5x premium on the pay cut they took.

The CEO was awarded almost 200,000 shares because he completely went without pay. Just to give an example. Price of stock was about $11 at the time.

RSU’s can be immediately fully vested during an acquisition that pays out shareholders.

That’s my little bread crumb that I’ve witnessed first hand before. They basically say it’s not the current company paying me, it’s the acquirer paying me.

Edit: more fun..

Let’s say Kastin took a six month salary to work on bed bath.

Let’s say 44k shares to round it off.

His typical full compensation was in the $700k range with Vitamin Shop. Even at the $5 it peaked at in early January, that’s only $220k for six months work. Either they are expecting it to sell for beyond $5 or he took a massive discount to work on possibly one of the most difficult turnarounds possible.