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.
