Interpublic Group, the beleaguered holding company, announced last Friday that they fired their CFO, Nicholas S. Cyprus, after only two years of service. While they wouldn’t say why they canned Cyprus, they were forced to disclose his severance package. Wow, talk about sweet. Check this out: he gets more than $1.6mm in salary, incentives and allowances, will be vested to receive 110,508 common and restricted shares of Interpublic stock, and options to purchase an additional 76,109 common shares. He’ll also receive up to $35,000 in outplacement and legal fees.
Phew! Where do I send my resume? If this is how Interpublic Group rewards failure, what must they do with the winners? Private villas on the Mediterranean? Fractional jet ownerships? A yacht or two?
More to the point, though, this sort of embarrassingly-high severance package will do nothing to assuage Wall Street that these guys have turned the corner and are making fiscally smart decisions. Some organizations seem hardwired to repeatedly shooting themselves in the foot. Sadly, Interpublic seems to be a classic example of the genre.