Arranology

CEO Pay 3: The Gap Closes on Pressler, Flood Fizzles

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While it doesn’t quite come up to the Nardelli Standard, still a $$$14.5Mil$$$ severance package for another fired CEO who took his company into the dumper is nothing to sneeze at.

For the last two weeks, the son of Gap’s founders and the board’s chairman, Robert J. Fisher, conducted a series of secret conference calls with fellow directors

The topic was whether to fire Gap’s embattled chief executive, Paul S. Pressler.

On Friday, Mr. Fisher delivered the board’s decision to Mr. Pressler: he was out. The 50-year-old former Disney executive did not put up much of a fight, according to a person briefed on the matter.

Yesterday Mr. Pressler stepped down after Gap’s third dismal holiday shopping season, in what the company described as a “mutual” decision. The move was widely expected on Wall Street, where investors began calling for his ouster more than a year ago. He is eligible for a severance package worth $14.5 million, the company said.

By comparison, HomeBank’s CEO, Patrick Flood, got shafted: a mere $$$5Mil$$$.

Patrick S. Flood, the HomeBanc Corp. CEO who abruptly left his post last week, will receive an exit package valued at $4.98 million.

The board of directors at the Atlanta-based mortgage company opted to replace Flood, HomeBanc’s founder and a fixture there since 1985, with Kevin D. Race, whom Flood brought into the company four years ago.

(ENLARGE)

The exit package of ex-HomeBanc CEO Patrick S. Flood includes severance, other pay.

In a filing Friday with the Securities and Exchange Commission, the company said Flood will receive cash severance of $3.4 million; accelerated, unvested equity awards of $975,000; a payout of the vested balance of his deferred compensation account, which is $393,000, and accrued salary and vacation pay of $166,000.

Flood received an additional $50,000 for waiving his right to outplacement services.

Poor baby. I don’t know how he’s going to survive on a mere pittance like that. He may have to go on welfare. How’s he gonna pay for his mansion? his Maserati? his house in the Hamptons? How’s he gonna hold his head up when he meets Nardelli and Pressler at the Yacht Club? Goddam, he’ll be begging on the streets for pennies this time next week. I feel sorry for the guy.

Not.

*sigh* The beat goes on.

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Written by Mick

January 23, 2007 at 2:31 pm

Posted in The Corporatocracy

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