One Italian business executive is sitting pretty after setting up a job offer deal with a cosmetics company to get paid over $1.8 million whether he takes the job or not. In the end, he decided not to take the job — the money, he probably will take.
Coty, Inc., the global beauty products manufacturer behind Calvin Klein, Davidoff, Marc Jacobs, Philosophy and Adidas, among others, has been looking for a new CEO since their former CEO, Michele Scannavini, left the company for personal reasons in September of last year. Coty Chairman Bart Becht has served as interim CEO ever since.
In April, they tapped Elio Leoni Sceti, the former CEO of Iglo Foods and the parent company behind Bird’s Eye brand of frozen foods to be their new head. Sceti, 49, signed an employment agreement which included a severance payment equal to one year’s salary if he ever left — Sceti also purchased $55,000 worth of preferred stock at the time. He was set to officially begin next week.
Now, after some reconsideration, Leoni Sceti has decided not to become Coty’s CEO. A Coty news release gave no reason for the decision.
As per his employment contract, Sceti will be awarded a $1.8 million severance package as well as $55,000 to buy back the preferred stock he purchased.
Coty’s chairman will continue to serve as interim CEO.
If a company is going to be throwing money around like that, you might as well be there with open arms to catch it — just make sure it’s in your contract.