All those ambitious junior executives of America who aspire to become chairman or CEO should really set their sights a little higher — to retired executive and honored senior adviser, also known as “consultant.”
Granted, being chief something-or-other pays better, but it surely involves more work in return, to judge from the consulting agreement snared by Frank T. Lennon. He’s currently vice president and chief administrative officer of armored-car and cash-logistics company Brink’s (BCO), but that’s only for a few more days. He’s scheduled to retire on September 1.
His agreement, filed with an 8-K after 4 p.m. on Friday — solidly in Friday night dump territory — funnels Lennon $27,500 a month (that’s $330,000 a year) through the end of 2013, plus a partial bonus and up to $15,000 in Medigap coverage for himself and his spouse.
Technically, Lennon made more by working: His total compensation last year was $1.3 million, including nearly $661,000 of it in cash. But we’re pretty sure he had to work full time for that. By contrast, under his new consulting agreement, to quote that document,
“the parties reasonably anticipate that the level of bona fide services performed by Consultant will be no more than twenty percent (20%) of the average level of bona fide services performed by him as an employee…”
In other words, he’ll be working a fifth as hard — meaning his $330,000-a-year consulting stipend is more or less the equivalent of $1.65 million on a full-time basis. And that’s based on a maximum workload of 20%. He very well could work less, the way the contract is phrased, which would push his annualized income into the stratosphere.
Presumably, Brink’s considers Lennon’s advice as golden as his consulting agreement. To put a value on that, we made the assumption that it takes at least a solid minute to have a thought worth sharing with anyone — especially if you’re getting paid for it.
At that rate, Brink’s is paying Lennon a minimum of $13.22 a thought (a nice premium over the usual penny), or $793.27 an hour. Again, this assumes he works the maximum allowed under his agreement. If he works less — or if it takes him longer than a minute to come up with advice worth sharing — his time and advice would seem to be worth still more to Brink’s.
So, future MBAs of America: Sure, get a job, mark your time in the c-suite with a stiff upper lip while you must (everyone has to pay some dues, after all). But keep your eye firmly on the prize: Your post-retirement consulting agreement.
Image source: Young businessman having headache via Shutterstock.com
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