Earlier we noted the big payday ahead for Wm. Wrigley Jr. Co. execs if the acquisition of their company by Mars Inc. goes forward as expected. That post focused on svp for worldwide strategy Peter Hempstead. Below, compensation consultant Jack Dolmat-Connell fills in the picture for Wrigley CEO Bill Perez. William "Bill" D. Perez spent 34 years at S.C. Johnson & Son Inc., makers of Windex, Pledge and other products, before joining Nike Inc. as CEO in 2004. He spent only 13 months at Nike, leaving after disagreements with Nike's founder, Philip Knight. As it turns out, this was a lucky break for Perez, at least financially. He got a hefty severance package and, before too long, a new job as CEO of Wrigley, where he came on board in late 2006.
Now, with Wrigley's announcement of plans to be acquired by Mars, Perez (pictured) may be looking at another major payday, this one worth tens of millions.
Chairman William Wrigley Jr. has indicated the executive management team will remain in place. The company press release stated: "Bill Perez and I, along with Paul S. Michaels, Mars Global president, fully expect our executive leadership team and the global leadership of our company to remain in place as active leaders of the business." Still, it's not unusual for CEOs to leave after the companies they lead are acquired, especially if financial security is not an issue.
Upon his departure from Nike, Perez, received nearly $11 million in severance. Termination at Wrigley would bring him nearly $40 million, but he doesn't need to be fired to be richly rewarded. Because Mars is a privately held company paying cash for Wrigley, all options will be "cashed out," according to the Wrigley press release. Upon the closing of the transaction in 6six to 12 months, Perez stands to make more than $28 million in stock and stock option gains.
Interestingly, around the time the Wrigley deal is closing, Perez may be receiving his final compensation from his stint at Nike. He was given three years (from January 2006) to exercise 200,000 stock options. At the time of his departure, the options were underwater, but they now have a value of $4.6 million.
It all adds up to a comfortable retirement, later or sooner. Of course, with Wrigley part of Mars, Perez will be returning to running a privately held family-controlled consumer products company -- something very familiar to him from those 34 years at S.C. Johnson. -
Jack Dolmat-Connell Jack Dolmat-Connell is president of DolmatConnell & Partners and an expert in executive compensation.
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