C.E. Andrews, who headed RSM McGladrey Business Services for H&R Block, is leaving the company with payments of more than $4 million and has the potential for more compensation. Although Block terminated his contract on March 6, it gave the executive nearly $1 million in cash under a separation agreement and tacked on another $3 million in cash because of what Block termed his "successful management" of the unit.
After RSM McGladrey was sold back to McGladrey & Pullen, Andrews remained as president of what was renamed Harbor Business Services. Besides getting the cash, he is also eligible for a pro-rata share under the Short Term Incentive plan, shares under the Long-Term Incentive plan and stock option awards for the year ending April 30.
Andrews got acclerated vesting of options to purchase 20,292 shares of Block stock at $17.33 per share, 11,019 shares at $12.59 per share and 15,341 shares at $16.04 per share. The stock closed at $15.67 per share on Wednesday, March 7. He has 15 months from the termination date to exercise the options.
The executive also gets $1,000 per month for 15 months for outplacement services and receved a lump sum COBRA subsidy payment of $12,226.56, minus tax withholdings. Andrews is subject to a two-year non-compete, non-solicitation agreement.
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