A house divided
Boston Scientific coughs up $2.6M for exec's real estate
Relocating to a new job and selling a former home can be stressful in any number of ways. No doubt, that stress can be eased somewhat with a guarantee of $2.6 million from your new company.
As part of incoming Boston Scientific CFO Sam Leno's formal offer letter, the Natick-based company agreed to purchase two of Leno's previous homes. Leno will receive a minimum of $1.3 million per home. After taxes, of course.
"Your participation in the company's relocation program will include the sale of both of your residences and the relocation of your personal effects from both residences," said the formal offer letter, dated April 11, 2007, and filed in a form 8-K with the U.S. Securities and Exchange Commission. "The Company will guarantee that you receive net (after tax) proceeds of a minimum of $1.3 million for each residence."
The terms of the deal first came to light on the web site footnoted.org, which closely examines SEC filings of publicly traded companies.
The letter is addressed to Leno at his home address of 4 Stone Camp Trail in Winona Lake, Ind. It is unclear where Leno's second home is located, or why it needs to be sold.
According to footnoted.org, a home directly across the street from Leno's Indiana residence is listed at $765,000, roughly half of what Boston Scientific will pay Leno for his home(s).
Paul Donovan, a spokesman for Boston Scientific, said that buying the homes was standard practice for the company upon hiring new executives.
"That is standard practice with us and other large companies, and part of the standard compensation package Sam received in joining Boston Scientific," Donovan said.
When asked if it was standard for the company to purchase more than one home from incoming executives, Donovan said, "There is no stipulation about how many homes we'll buy. We try to do what we need to do to attract top talent, and certainly he is top talent."
As part of the agreement, Leno will make a $600,000 annual base salary and be eligible to purchase up to 1.5 million shares of Boston Scientific common stock, with an award of 500,000 deferred stock units. He is also eligible for participation in the company's "Executive Allowance Plan," which will grant him $25,000 annually "in lieu of certain other perquisites."
Boston Scientific reported that its first quarter profit totaled $120 million, down 63.9 percent from $332 million during the same quarter the previous year.
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