SAP agreeing to buy fellow software maker Sybase (SY) for $5.8 billion, prompts footnoted.org blogger Michelle Leder to sift through SY’s filings and look for any pre-merger signals.
Sure enough, a proxy last month reveals Sybase CEO John Chen would receive a post-deal payday of $30 million, with the bulk coming in stock options, restricted stock and stock appreciation rights. That number, which is based off SY’s closing price on Dec. 31 of $43.40, actually rises to $42M considering the premium SAP is paying, she calculates.
SAP will pay $65 for each Sybase share, a 56% premium on Tuesday’s closing price.
“Now, granted, Chen has been at Sybase for a long time, so while the number is a big one, it’s not nearly as offensive as some other deals we’ve seen where a newly installed CEO collects millions for a few months on the job,” Leder says. She also notes CFO Jeff Ross and three other executives will make $8 million each from the deal, compared to $5.7 million detailed in the proxy.
Sybase shares were recently up 14% at $64.27; SAP down 0.8% at $44.56.
