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Deb Shops' golden parachutes

So, how well did Deb Shops Inc.'s (NASDAQ:DEBS) executives fare in selling the company to a private equity group for $395 million? CEO Marvin Rounick will get a three-year consulting contract worth $1.2 million. So says its SEC filing today. Secretary/Treasurer Warren Weiner is getting $900,000. The executives and their spouses are getting lifetime healthcare along with the ability to get automotive insurance under the company's group rates. And the new owners will reimburse Rounick and Weiner up to $15,000 each for legal fees and expenses "in connection with their negotiation of their respective consulting agreements and the voting agreement."

On the other hand, Rounick and Weiner "will be subject to non-solicitation and non-competition restrictions during the three year period of the consultancy."

- Jonathan Berr

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This page contains a single entry from the blog posted on September 24, 2007 4:00 PM.

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