Sunrise Senior Living CFO Leaving
May 4, 2009
May 4, 2009
As part of an announcement today that the company was going to "downsize" and reduce overhead by more than $20 million annually from a reduction in non-care related administrative costs, Sunrise Senior Living also stated that its CFO, Richard Nadeau, would be leaving the company no later than June 15 and would be replaced by the chief accounting officer, Julie Pangelinan.
Although no reason was given for his departure, and it was based on a "mutual agreement," we find the timing quite odd since the CFO position is so critical at this crucial time for Sunrise. Perhaps he had just had enough, but since he has worked with the CEO, Mark Ordan, before, we would have thought the latter could convince him to stay. Mr. Nadeau will be receiving all the severance benefits he is entitled to, which will include two years of salary and targeted bonus, which should come to $1,750,000. Plus, the vesting of his newly minted options will be accelerated. Not bad, especially when the company is trying to cut overhead, but these were all part of his recently signed contract. And that is what is so strange, because it was very recently that he "reupped," so to speak, with a new contract. So why the change of heart so soon? And no 12-month consulting agreement, which seems to be common with friendly departures. Something is peculiar here.