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Jackpot Du Jour: It Pays to Quit

Date: October 31, 2004
Authors: Neela Banerjee and John Kifner
QUOTE: Just when you thought you'd seen it all in excessive executive pay, along comes a money grab so creative - and lavish - that it simply must have its turn in the spotlight.

ABSTRACT: As part of a $165.1M deal to sell a subsidiary division, Audiovox's corporate directors apprived $25 million in payments to Audiovox's top management. $16M of that compensation was given for the executive's "personally held intangibles", i.e. contacts, relationships, and personal know-how; critics charge that these are the things executives are paid for anyway and such valuations unfairly loot corporations at the expense of shareholders. The company's corporate structure (separate voting shares) and the extent of the director's independence from management were also issues cited in the article.

--- O. Overman

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