How can the board approve this deal for Fishman? It is time for an activist shareholder to demand accountability!
Big Lots’ retiring CEO to consult for $933,324 a year
When Steve Fishman retires this month as CEO and president of Big Lots, he will continue working with the company as a consultant for three years.
According to a filing yesterday with the Securities and Exchange Commission, Big Lots will pay Fishman $77,777 monthly ($933,324 annually) for the work. In addition, he will receive use of an automobile and a special retainer equal to the amount that he otherwise would have been entitled to receive under the company’s bonus program.
Fishman announced in December that he would retire this year. His retirement comes as the SEC investigates a
$10 million stock sale a year ago that occurred just before the company announced that store sales had declined.
The company has said Fishman’s retirement is unrelated to the SEC investigation.
Thanks for info SFO. I agree - way too much $ for this type of situation. Gives a little pause to the chatter that BIG might be a private equity buyout candidate - PE buyers don't necessarily want the former CEO in the background for three years, getting $1 million/year. (BIG is consided to be a buyout candidate because on a cash flow to enterprise value basis, BIG is very cheap, plus has an opportunity to improve Canadian business, or sell it. ) I thought of one positive to Fishman staying on, albeit it's a "hope" rather than a concrete fact. Fishman did do an incredible job buying back stock and reducing the share count. BIG can easily go from $36 per share to $45 to $50+ if they keep buying back $150 to $175 million per year of stock (look at the diluted shares consistently going down each year). On the last CC BIG said it would suspend buybacks until the new CEO was hired and had a chance to evaluate/lead as they saw fit. If Fishman can influence the new CEO to maintain this buyback pace, a $1 mil/yr for 3 yrs retainer will be worth it.