A number of present and former officers and directors of Toys “R” Us Inc. stand to receive a total of $187 million when the company completes its $6.6 billion sale to an investment group, according to the retailer’s proxy filing.
None of this largesse will be paid out in “Geoffrey money,” either. The $187 million will come from severance, bonuses, and tax-related benefits, as well as proceeds from terminated compensation plans, stock options, and other sources.
The biggest beneficiary will be chairman and chief executive officer John H. Eyler Jr., who will reap about $65 million. Chief financial officer Raymond Arthur stands to receive close to $8.5 million.
Each executive, excluding Eyler, will receive a “retention/success bonus” equal to two times annual salary if the executive stays with the company until the merger closes. Arthur would receive $1 million from this source.
The finance chief would also be due $2.6 million in potential cash severance payments; $1.9 million in estimated tax gross-up payments; about $1.65 million from the cancellation of options; $1.3 million from the cancellation of restricted stock and stock unit awards; and $160,000 in connection with unvested account balances from the termination of non-qualified deferred compensation plans. Arthur, however, has no vested benefits.
The sale, to a group that includes private equity firms Kohlberg Kravis Roberts & Co. and Bain Capital Partners LLC as well as real estate company Vornado Realty Trust, must still be approved by shareholders, noted the Associated Press. According to the wire service, Toys R Us expects to close the deal by the end of July.