Another Thing -- WHY An Additional $500,000 In Cash, Beyond The Existing Multi-Million Dollar 'Chutes?

In my haste to get the word out this morning, I neglected to explicitly mention that both CEO Korzenski and GC Reed have already been promised very large sums in almost any change of control setting.

In Mr. Korzenski's case, he would already be paid cash of at least $2.05 million (consisting of $1.86 million in salary, plus $291,000 in accelerated LTIP payout vesting); Ms. Reed would receive cash of at least $1.33 million (consisting of $1.15 million in salary, plus $180,000 in accelerated LTIP payout vesting) -- should a change of control transaction occur, and either of their duties, jobs or titles be diminished, or either of them be asked to move away from northern Illinois, to perform those jobs.

Per the last-filed Solo SEC Form 10-K, at the bottom of page 84:

. . .If the executive terminates his or her employment for “good reason” or Solo Cup Investment Corporation terminates the executive’s employment without “cause,” as such terms are defined in the employment agreements, Solo Cup Investment Corporation will pay to the executive all accrued and unpaid base salary and bonus, and a severance amount equal to the greater of (A) the amount of base salary that would have been paid over the remainder of the then-current agreement term and (B) two and one-half times annual base salary, each payable in accordance with the normal payroll practices of Solo Cup Investment Corporation. . . .

It is pretty hard to understand how the CEO can identify with the Toby Keith blue-collar crowd when he gets an additional $500,000 in cash, for doing something he'd previously agreed to do -- for $2 million. Ms. Reed's previously-promised payments are to be smaller, so the $500,000 represents an even more significant transfer of value, for work already agreed to be performed.

That's extremely unfortunate -- given that many ordinary workers are likely to lose their already very modest earnings in any hurry-up auction process, all to be completed before June 1, 2012, just to get them their $500,000 bonuses. I think Toby Keith (along with an able assist from Willy Nelson!) might well sing this one, about that one: