All of these will vest when the Merck transaction closes -- and so long as the price is then above $22.91, this is simply a GIFT to Hassan, for no additional performance -- from Hans Becherer. Disgusting. Remember he is already getting at least $78.6 million, and about ANOTHER $7 million, for every dollar the stock rises, over $22.91. More soon. From the SEC Form 4, just filed, then:
. . . .868,300 shares at $22.91. . . .
In fact, all of the EMT got these options on May 1, 2009. What "performance" does this secure? I don't even understand the theory here.
This is a simple gift of money to all of the EMT -- for no additional performance, assuming Schering-Plough common stock is trading above $22.91, on the NYSE (seems likely, as the announced value was above $26 per share, on March 9, 2009), on the day CEO Hassan closes this reverse merger, when the all these options vest due to a change of control event.
So, if the deal closes at $26, CEO Hassan personally will receive his $78.6 million, PLUS about another $21 million ($3 per share, times about 7 million shares or share-equivalents, then held) -- or, $99.6 million before tax gross-up payments -- even more, after the gross up.
Does anyone believe any of the EMT members would leave the other 90 percent of their respective golden parachutes, and walk away, if this last bit was NOT paid? What is the theory?
Fill out your executive compensation survey. Do it now.
