Dave Brandon - Toys "R" Us Salary
Presented without comment.
Mr. Brandon’s Employment Agreement
In connection with Mr. Brandon’s appointment as Chief Executive Officer, the Company and Mr. Brandon have entered into an employment agreement with an initial term of five years, with automatic renewals for successive one-year periods unless either party delivers a timely notice of non-renewal. The agreement further provides for the following compensation and benefits:
Base Salary and Bonuses. An initial annual base salary of $3,750,000 per year, which may be increased at the discretion of the Company’s Board of Directors, and an annual bonus targeted at 120% of annual base salary (with a maximum possible bonus of 160% of annual base salary), subject to achievement of performance targets established by the mutual agreement of the Board of Directors and Mr. Brandon. Mr. Brandon’s annual bonus for the 2015 fiscal year, if any, will be pro-rated based on the number of days for which Mr. Brandon is employed by the Company in that fiscal year. In addition, the Company will pay Mr. Brandon a one-time bonus of $4,250,000, payable in a lump sum within ten days of June 1, 2015.
Perquisites. Mr. Brandon will be eligible for the Company’s welfare benefit plans and retirement plans, including the Company’s 401(k) and supplemental executive retirement plans and medical, dental and life insurance plans, as in effect from time to time on the same basis as other senior executives of the Company. In addition, the Company will also provide Mr. Brandon with the use of a Company-paid automobile (or alternative ground transportation) and the use of a private aircraft for Company business travel and specified personal travel (together with a tax gross-up for the income attributable to him for the use of the aircraft). The Company has also agreed to reimburse Mr. Brandon for specified legal fees as more fully described in Mr. Brandon’s employment agreement and to provide Mr. Brandon its relocation package available to other senior executives.
Long Term Incentive Awards. Mr. Brandon will also participate in the Company’s long-term cash incentive award program, which will provide him with a long term cash incentive award, effective July 1, 2015, under the Company’s 2010 Incentive Plan, of two payments of $18,750,000. The award will vest and become earned upon achievement in any fiscal year ending on or before the last day of the Company’s fiscal year ending January 2018, of a specified level of Adjusted EBITDA less average capital expenditures for the prior three fiscal years, as more fully described in Mr. Brandon’s incentive award agreement, subject, except as set forth below, to Mr. Brandon’s continued employment through the end of the fiscal year in which such condition is satisfied. If earned, the first payment under the award will be made shortly following certification of achievement and the second payment under the award will be made one year following certification of achievement.
http://www.sec.gov/Archives/edgar/data/1005414/000119312515213371/d9355…
http://www.sec.gov/Archives/edgar/data/1005414/000119312515213371/d9355…
Totally off topic on teacher pay but IMO it should be one of the highest paid jobs in the country. They do one of the most important jobs in the country. But it needs to come with measurables and such which are problematic in that job.
And the union issues are a big issue. There was a lady in I think the D.C. school district about 7-8 years ago - I think Michelle Rhea was her name. She proposed to the union there that she would double the salary for the highest performers in the district but in return the lowest graded teachers would actually be fired. The union said no.
I am not anti union per se. It did a lot of good esp in the 20s thru 60s or what not but in the public sector it's an issue when people would rather not be paid on performance but instead on tenure.... and even now you see teachers who do bad misconduct and its nearly impossible to fire them.
Anyhow completely off tangent. It would be an interesting system if the top teachers in public schools were paid like say a mid level doctor but every year you dropped the bottom 2-5% of your teachers out of the district. Competition would be very different for those jobs.
Don't want to get into anything political, but that Michelle Rhea character ended up being a total fraud. She got famous for making a huge turnaround in Washingon DC inner-city school test scores in a very short amount of time. However it turns out the turnaround was almost entirely due to teachers cheating for the studends in order to boost their own performance scores. It appears Rhee knew this was going on (or should have at least been aware if she had been paying attention), but kept quiet about it because it made her into a star.
This makes me want to vomit, drink, or kill myself.
And I'm in business...
Oh Rafi, you crazy.
I don't want to grow up, because if I did, I'd never be a Toys R Us CEO.
Wal Mart is crushing Toys R Us. That is a sinking boat that he is going to try and orginize the deck chairs on. Maybe he will do a reasonable job and make them as mediocre as he did Domino's.
I wonder if he has talked to Geoffery about a future pimping Kraft Mac n Cheese?
He'll sell the board on the upside potential of a strategic evolution from giraffe to unicorn.
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Yeah, wait till he implements "Dynamic Pricing" during the Christmas season.
Then I decided I might as well say this once.
Now that Dave Brandon's no longer affiliated with Michigan, I really don't care to know any details about his life. I could get worked up into an outrage over this or that, but I'd rather spend my energy on other positive pursuits. He's not worth my time.
I suggest everyone else on this board do likewise.
I don't talk about AD's no longer with the Univ of Mich. I care about guys still on the team.
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I'm never shopping at Toys "R" Us again. I couldn't stomach it to think a small percentage of my sale went to pay his salary.
The new Toys R Us executive office stationary:
".... ..... ....."
Maybe I can get paid a shit-ton for doing basically nothing:
or even better:
but, I'll probably pass on:
he should do well. he has a mind of a kid and the brain of a toy. gooooood luck
He couldn't have run that scheme working for a legitimate company.
In 2006, David Brandon and his wife, Jan, gave $4 million to the university. About $2 million of that was earmarked to build a modern neonatal intensive care unit at the C.S. Mott Children's and Women's Hospital. The Brandon's twin sons, Nick and Chris, were treated as newborns at the university hospital when they were born prematurely.
Money for the gift also set up a $250,000 David and Jan Brandon Scholarship Fund for student athletes, $750,000 for the athletic department, $500,000 for a digital records storage center for the school of education, and $250,000 each for the university's art museum, urology department and business school.
Now that his annual salary has gone from around $900K as Michigan's Athletic Director to nearly $4M (not including bonuses, etc.), I guess he'll have more money to donate to the university. Whether he and his wife opt to do it, of course, is up to them.
If word didn't come straight from WD's friend's aunt I won't believe it. The contract could be photoshopped.
There was always something fishy about the fact that WD said that e-mail came from his aunt or friend's aunt or whatever. I saw the e-mail address and it seemed to be a guy's e-mail address based on the username.
Well, at least we can lay to rest any argument about whether or not there is a god now.
I, for one, am looking forward to his "buy two Cokes, get a free Playstation" promotion.
Why are so many people upset by this? This is good for Michigan's checkbook. Did you want to continue paying him a ridiculous sum just to stay far away?
Yeah, I guess I was wondering that too. At this point, the most substantial effect of this is that Michigan can now reduce greatly (maybe eliminate - not sure of the particulars) the payments due to David Brandon. Small win, but a win. I am in no way a fan of Brandon, but at this point, we'd probably do better to let go and take the learnings from it forward.
I wonder if the U-M contract/settlement has a set-off provision. If so, that's good news for Michigan.
As much as I hated him as an AD, I wish him luck. The issue as I see it is not that Brandon just tried to import corporate culture to Michigan. It's that it was bad, bloated corporate culture. But he's one of ours, any way you look at it.
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So Toys 'R Us is not, as DB so synergistically used to put it, "paying for value."
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The store was offering "two free tickets" to each person who bought an inflatable "Geoffrey" and two bottles of any Coke product. Only problem: THESE WERE THE "FREE TICKETS"
hurt my brain. (not that DB would care)
He's happy... let me buy my daughter toys now for the next 13 years of her life
Brandon's 1st year salary will probably be close to $25M when you consider the $20M golden parachute they give him when they fire his ass after a year of incompetence.