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Estimated reading time: 2 minutes, 3 seconds

New Block CEO Gets Jet Use for Commute

Alan BennettWhen former CEO Thomas Bloch said he wouldn't serve another term as an H&R Block director he wrote he hoped new CEO Alan Bennett would move to the company' home in Kansas City, Mo. He also criticized Bennett's pay package. But that package shows Bennett isn't ready to pull up roots yet as the new executive and his family get use of the company's Net Jet share for one trip per week from their Connecticut and Florida residences.

Bloch's comments came in a letter to the board in which he criticized the pay package offer Bennett, who had served as interim CEO before Russ Smyth took over as CEO on Aug. 1, 2008. That followed a period of turmoil in which Smyth resigned last month, which was preceded by the resignations of the company's CFO and corporate counsel in the last three months.

According to his employment contract, Bennett pulls down $2.5 million in cash the first fiscal year, a combination of base salary of $950,000; a sign-up bonus of $900,000 and guaranteed performance bonus of $700,000. He also got a grant of an option on 1 million shares that have a strike price of $14.37 per share, the adjusted closing price on July 12.

Among other perks are payment providing Bennett with housing and rental car expense while he is in Kansas City on company business with a tax gross up, along with the use of the jet.

Smyth got the same $950,000 base salary and a $200,000 relocation payment, along with 900,000 shares at August 2008 prices. With his compensation prorated for the fiscal year ended April 30, 2009, Smyth got a $712,500 salary, $783,750 bonus and $289,978 in other compensation that included the lump sum relocation payment. Block valued his stock options at $826,819 for total compensation of $2.6 million for fiscal 2009.


Bob Scott
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards.  Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He  has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that.  A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
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