It seems that executives who leave the privately held Australian surf giant Rip Curl can pretty much forget about keeping any of the shares they got as part of their employment. Most recently Rip Curl has bought back 150,000 shares from former board chairman James Strong for $1 a piece, according to a story in the Sydney Morning Herald.
It appears that the company has only paid $1 a share for Mr Strong’s stake, as part of an arrangement to buy them back at the price they were issued seven years ago. . . . But Rip Curl’s C-class stock is set at $62 a share, valuing Mr Strong’s 148,412’s shares at a nominal $9.2 million, according to documents filed with the Australian Securities and Investments Commission. . . The final amount paid to the former chairman was part of a “confidential settlement agreement” relating to his departure, the company said in ASIC filings on Friday.
You don’t stay “closely held” by letting voting shares get to far from the nest, apparently.
[Link: Sydney Morning Herald]
