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BABYSITTERS: A BARGAIN AT ANY PRICE?
September 26, 2005
We have stumbled accross "footnoted.org," a blog that lives on a study diet of accounting statement footnote disclosures. Today they offer up this gem:
What’s the going rate for babysitters in your area? Here in suburban New York, it can run as high as $15 an hour. But in Omaha, which last I checked wasn’t exactly a high cost metropolis, the going rate seems to be considerably higher based on an exhibit to an 8-K filed by Con-Agra (CAG) late Friday. The company has agreed to pay its outgoing Chairman and CEO Bruce Rohde $50K a month to essentially babysit incoming Chairman Steven Goldstone. That’s in addition to the stock options and restricted stock that vest immediately as well as the office space, secretarial support and health insurance for Rohde and his dependents.
Since the arrangement, which begins Oct. 1, lasts for four years, one would think that Goldstone is some novice in need of lots of hand-holding. But a closer look shows that Goldstone is not only the former Chairman and CEO of RJR Nabisco, but he’s also been sitting on Con-Agra’s board since December 2003.
Nice work if you can get it.
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Comments
I'm in the wrong business!! But wait, I've never done babysitting for a Chairman...does that require changing diapers?
Posted by: Brent | September 26, 2005 7:46 PM
It's actually a small price to pay to extend a non-compete for a few extra years. Most states won't enforce a non-compete nationally or for more than 2 or 3 years. Here they get a fully four years, nationwide, plus an additional 2-3 years upon termination. I guarantee he won't be in the office 50 days over the next twelve months.
Posted by: Chad | September 28, 2005 9:54 AM