Previously, I had mentioned that Twitter had filed a registration statement for its initial public offering. The initial batch of Twitter contracts was missing the offer letters. A subsequent filing included offer letters for Adam Bain, Ali Rowghani, Christopher Fry, Mike Gupta, Richard Costolo and Vijaya Gadde.
Just spotted a Seafarer’s Agreement between Carnival Cruise Lines and a Galley Steward from April, 2008.
Seafarer shall be paid the wage of $14.8352 USD for each day of work, including overtime. This daily rate translates to a monthly wage of $450.0000 USD.
From their lawsuit against their former Senior Vice President for Financial Services for breach of post-employment obligations, you can find an Executive Employment Agreement, Proprietary Rights and Non-Competition Agreement, and Business Presentation Agreement.
HP recently filed its Offer Letter between Hewlett-Packard Company and Margaret (Meg) C. Whitman. Unlike previous CEOs, such as Carly Fiorina (Base Salary of $1,000,000), Mark Hurd (Base Salary of $1,400,000), and Leo Apotheker (Base Salary of $1,200,000), Meg has an initial base salary of only $1 per year. However, she will be eligible for a target bonus of $2,400,000, so this is not an entirely pro bono affair.
HP has an executive stock ownership guideline that requires to CEO to hold HP shares with a value of five times salary. However, with a initial base salary of $1 per year, this requirement would be meaningless. For Meg, her “guideline will be based on a notional base salary of $1,200,000 instead of [her] actual salary of $1.”
Two days later:
On August 24, 2011:
- Steve Jobs resigned as Chief Executive Officer of Apple Inc. (“Apple”). Mr. Jobs will continue to serve as an employee;
- The Board of Directors (the “Board”) appointed Mr. Jobs as Chairman of the Board;
- The Board promoted Chief Operating Officer Timothy D. Cook to Chief Executive Officer; and
- The Board appointed Mr. Cook to the Board to fill an existing vacancy.
In connection with Mr. Cook’s appointment as Chief Executive Officer, the Board awarded Mr. Cook 1,000,000 restricted stock units. Fifty percent of the restricted stock units are scheduled to vest on each of August 24, 2016 and August 24, 2021, subject to Mr. Cook’s continued employment with Apple through each such date.
Here’s the Restricted Stock Award Agreement between Apple Inc. and Steve Jobs from March of 2003, which CNNMoney curiously failed to consider. The restricted stock grant to Steve Jobs was for 5,000,000 shares. At the $14.95 closing price on March 19, 2003, the grant was worth $74,750,000. The stock split 2:1 in February 2005. The 5,000,000 share grant is worth $3,835,800,000 today–that’s 3.8 billion. And, Steve earned every dollar of it.
The Wealth Report reported that Chesapeake Energy’s CEO Aubrey McClendon recently unloaded a large portion of his wine collection ($2.225 million!) at auction. The top sellers came from Domaine de la Romanée-Conti, a brand Gary Vaynerchuk has yet to review. Anyways, $2 million sounds like a lot, but is really pocket change when compared to the $75 million incentive award provided in his December 2008 employment agreement with Chesapeake Energy.
Of course, the government sees nothing wrong with companies paying millions in bonuses to executives, unless they are taking TARP money.
When West Virginia University sued Coach Richard Rodrigez, it was kind enough to attach copies of his employment agreement. Take a glance at the types of incentives that some universities pay to head football coaches.
- Season Ticket Sales. $10,000 for 30,000 tickets, $20,000 for $35,000 tickets, and $30,000 for 40,000 tickets.
- Student Academic Achievement. $10,000 for a “satisfactory evaluation.”
- Regular Season Title. $75,000 for Big East title.
- Bowl Appearance. $25,000 for Non-BCS Bowl and $75,000 for Bowl Championship Series appearance.
- National Championship $150,000. (Does not mention according to which poll).
- Final Ranking. $15,000 for final Top 25 ranking and $25,000 for final Top 10 ranking in ESPN/USA Today or AP polls.
- GPA. $10,000 for team GPA of 2.65 or better.
- Graduation. $10,000 if 60% or more of recruits fulfill their eligibility and graduate from WVU within five years.
- Coaching Awards. $10,000 for Big East Conferenced Coach of the Year and $20,000 for National Coach of the Year.
If you are tabulating the results, that’s $30,000 for academic-related incentives and $385,000 for winning football games and putting fans in the seats. The sad part of these incentives is that the academic targets are so low while the athletic targets are so high. 2.65 GPA? That’s like giving a $10,000 incentive to finish 7-6.