There’s a lot going on at ShopHQ, we mean Evine Live, according to filings with the Securities and Exchange Commission. And boy, are ShopHQ execs Mark Bozek and Russell Nuce making out like bandits.
You’d never know the home shopping network was struggling based on their executive comp — $1.13 million for Bozek and $567,000 for Nuce. And that doesn’t include their monthly allowances and moving expenses, etc.
First of all, veteran reality TV producer, and hit maker, Thom Beers is no longer on the No. 3 home shopping network’s board. This comes in the wake of Nuce being named Chief Strategy Officer at the company.
“As a result of the consummation of the transaction, the Company’s board of directors has determined that Mr. Beers will no longer serve as an independent director as that term is defined in Rule 5605(a)(2) of the NASDAQ Stock Market and at this time, will no longer be a member of the Company’s corporate governance and nominating committee,” the SEC filing said.
What is Nuce getting for coming on-board?
An initial base salary of $375,000 annually, a signing bonus of $75,000 and a one-time first-year bonus of $116,667, payable upon completion of the fiscal year ending Jan. 31 next year. Wow, sweet! We’re no math experts, but we think that adds up to about $567,000.
And how about this?
To help with Nuce’s relocation to the company’s headquarters in Eden Prairie, Minn., he will receive a living expense allowance of $4,000 a month for up to six months, plus a $10,000 family travel allowance for up to 12 months.
Bozek this week also entered into a generous executive employment and severance agreement, which provides for an initial base salary of $625,000 a year, a signing bonus of $125,000 and a one-time first-year bonus of $381,849, payable upon completion of the fiscal year ending Jan. 31.
To assist with Bozek’s relocation to the company’s headquarters, his employment agreement provides for a living expense allowance of $2,500 a week for up to six months, plus an additional amount to make Bozek whole for taxes on the living expense allowance.
His employment agreement also provides that he be reimbursed for up to $20,000 in reasonable and documented legal expenses and other costs associated with the negotiation of his employment arrangements, and for an award of performance restricted stock units under the Company’s 2011 Omnibus Incentive Plan with a fair value of about $1 million.
And how about this as a golden parachute?
If Bozek is canned without cause (other than as a result of death or disability) or he exits “with good reason,” he will receive severance benefits consisting of a cash severance payment equal to one and one-half times the sum of his base salary and his average annual bonus over the prior three fiscal years (or such fewer number of prior years for which he has been employed by the company).
The multiple will be increased to two times Bozek’s base salary and average annual bonus following a change in control.
Read it all for yourself here: