Biglari Gets A Deal For The Use Of His Name


How much is Sardar Biglari's name worth? $18.5 million, at least right now. That's how much Biglari Holdings would have to pay its chairman for the use of his name should the San Antonio-based company decide to give him the boot according to a recent SEC filing.

According to the filing, Biglari would get a fee of 2.5 percent of revenues should someone else take the helm of his company, making that quite a severance package. Based on last year's revenue, that's $18.5 million. The contract lasts 20 years.

The unusual move is the latest in a series of efforts by Biglari that have seemingly been designed to protect his power -- he's tried instilling a dual class share structure and also tried a massive, reverse stock split that would have taken Biglari Holdings' stock into the stratosphere.

We can't imagine a contractual provision that protects an executive's power more than one that would pay him a big chunk of company revenue should he get fired or should he bolt due to some "trigger event."

We also can't help but note that Biglari took over Steak N Shake, got installed as chairman, gave the company his own name, and now wants to charge that company for the use of said name if he were to depart.


Edit ModuleShow Tags
Edit Module