So, Legg Mason
] is paying Mark Fetting
roughly $4 million to hit the road.
The fund firm announced
last week that Fetting will be resigning from the firm, effective Oct. 1.
According to a filing
with the U.S. Securities and Exchange Commission, Fetting will be entitled to a variety of benefits:
111,548 unvested restricted shares held by Mr. Fetting will remain outstanding and eligible to vest,
$2,000,000 payable in equal installments over the fifteen (15) month period following October 31, 2012,
eighteen months of COBRA coverage at the Company’s expense for Fetting, his spouse and eligible dependents, and
up to $25,000 worth of outplacement services.
All told, these benefits are expected to cost Legg Mason about $4 million, according to the SEC filing.
However, there is a catch, Fetting has to refrain from what the filing defines as "Restricted Activity" to be eligible for these benefits.
Such "Restricted Activity" includes: disclosing or misusing confidential information of the Company at any time; soliciting clients or customers of the Company to reduce, terminate or otherwise alter their business relationship with the Company for a period ending 15 months from October 1, 2012; and raiding employees or independent contractors.
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