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Hewitt's buyout structure...
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<blockquote data-quote="BeeRBee" data-source="post: 141527" data-attributes="member: 1466"><p>I kind of hate to give this it's own thread, but while I'm convinced I saw questions about this in some other threads, I can't find them now. Anyway, after scrounging around this afternoon I think I can say this:</p><ul> <li data-xf-list-type="ul">Hewitt was fired in March 2011, before his contract would have rolled over and added a 6th year. At that point he had 5 years remaining.</li> <li data-xf-list-type="ul">The contract did not specify his salary for 2010-2011 (subject to negotiation), but his 2009-2010 salary was $1.375 million per year. I'm assuming he did not get a raise for 2010-2011.</li> <li data-xf-list-type="ul">The buyout of 100% of $1.375 million for 5 years would have been $6.875 million (nominal), and presumably would have consisted of monthly payments of $114,583 ending in March 2016.</li> <li data-xf-list-type="ul">The notes to the GTAA financial report for the year ending June 2011 state that the buyout settlement requires "monthly payments of $75,521 through March 2019", an 8 year period.</li> <li data-xf-list-type="ul">The nominal sum of $75,521 over 96 months is $7.25 million.</li> <li data-xf-list-type="ul">News articles at the time of the firing describe the buyout as being $7.2 million.</li> <li data-xf-list-type="ul">The difference in $6.875 million over 5 years and $7.25 million over 8 years presumably represents the negotiated interest for the agreement to spread out the payments, which works out to be an annual rate of about 3.7%. (If his salary actually increased in 2010-2011 this would be lower.)</li> <li data-xf-list-type="ul">Coincidentally, as of March 2015 GT is exactly halfway through paying off Hewitt's buyout. They have made 48 payments totaling $3.625 million, and have 48 payments to go.</li> </ul><p>Given the description of the buyout in news articles as $7.2 million, I'm convinced that part of Radakovich's "spreadsheet" work to find the money to fire Hewitt consisted of negotiating the longer payout period. So, this probably wasn't a restructuring that occurred after the firing, but a negotiated settlement resulting in the firing.</p><p></p><p>More information that anyone needs, but for some reason I really wanted to figure this out.</p></blockquote><p></p>
[QUOTE="BeeRBee, post: 141527, member: 1466"] I kind of hate to give this it's own thread, but while I'm convinced I saw questions about this in some other threads, I can't find them now. Anyway, after scrounging around this afternoon I think I can say this: [LIST] [*]Hewitt was fired in March 2011, before his contract would have rolled over and added a 6th year. At that point he had 5 years remaining. [*]The contract did not specify his salary for 2010-2011 (subject to negotiation), but his 2009-2010 salary was $1.375 million per year. I'm assuming he did not get a raise for 2010-2011. [*]The buyout of 100% of $1.375 million for 5 years would have been $6.875 million (nominal), and presumably would have consisted of monthly payments of $114,583 ending in March 2016. [*]The notes to the GTAA financial report for the year ending June 2011 state that the buyout settlement requires "monthly payments of $75,521 through March 2019", an 8 year period. [*]The nominal sum of $75,521 over 96 months is $7.25 million. [*]News articles at the time of the firing describe the buyout as being $7.2 million. [*]The difference in $6.875 million over 5 years and $7.25 million over 8 years presumably represents the negotiated interest for the agreement to spread out the payments, which works out to be an annual rate of about 3.7%. (If his salary actually increased in 2010-2011 this would be lower.) [*]Coincidentally, as of March 2015 GT is exactly halfway through paying off Hewitt's buyout. They have made 48 payments totaling $3.625 million, and have 48 payments to go. [/LIST] Given the description of the buyout in news articles as $7.2 million, I'm convinced that part of Radakovich's "spreadsheet" work to find the money to fire Hewitt consisted of negotiating the longer payout period. So, this probably wasn't a restructuring that occurred after the firing, but a negotiated settlement resulting in the firing. More information that anyone needs, but for some reason I really wanted to figure this out. [/QUOTE]
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