In early October, Mills Corp. CEO Laurence (Larry) C. Siegel — the man who has presided over Mills for 11 years and was expected to exit when the new owners materialized — announced plans to relinquish the CEO title, but remain as non-executive chairman.
As part of the move, Siegel, 53, has written an attractive exit scenario for himself. According to a Securities and Exchange Commission filing by Mills on Oct. 2, Siegel will receive a $2.5 million severance package and a $10.5 million payment if there is a change of control at Mills on or before Dec. 31, 2007. He will also be able to vest 10,952 shares of restricted Mills stock. In addition, Siegel will continue to provide consulting services to the Mills Corp., for $5,000 a day, until the end of this year.
Barry Vinocur, editor of Realty Stock Review, says that granting Siegel such a generous exit package, after Mills' problems, including an ongoing SEC investigation, indicates that the Mills' board is still not looking out for shareholders. “This just makes no sense, this is Alice in Wonderland,” Vinocur says. “He isn't being fired; he's being set up for life by the company.”