International: Day after Grey buyout, Ed Meyer unloads WPP stock; goes home with $445 m in cash
Ed Meyer decided to take the money and run -- to the bank. Grey Global Group's chairman-CEO unloaded most of his new WPP Group stock barely a day after the British ad firm completed its Grey buyout March 7.
Meyer isn't leaving just yet. He has a contract to run the Grey Global operation through December 2006. After he steps down as CEO of the Grey Worldwide ad agency -- he has six months to propose a successor -- Meyer has the option to take a WPP board seat.
But his immediate issue is to figure out what to do with a cache of cash. Meyer, 78, and family interests stood to gross more than $400 million in cash and WPP stock on the sale of Grey, including his stock, family trusts, a family foundation's shares and stock options that could be converted into WPP stock.
WPP paid for half of Grey shares in cash and half in WPP stock. Assuming that mix,
WPP would have paid Meyer and his family about $165 million cash when the deal closed on March 7, by AdAge.com's analysis. Then Meyer sold the bulk of his WPP shares for $204 million, according to a Reuters report on Wednesday confirmed by an individual close to the situation.
Add in his payout for deferred compensation and supplemental pensions ($53.1 million) and a golden parachute ($22.7 million), and Meyer today is sitting on $445 million in cash, by AdAge.com's analysis.
A spokeswoman for Meyer didn't immediately respond to a request for comment. A WPP spokesman confirmed Meyer had sold a significant stake but declined to elaborate on the transaction.
Meyer does not have to disclose his WPP holding -- until he becomes a director -- so it's difficult to figure out precise holdings. But factor in the value of stock options and remaining shares and it appears Meyer and family interests still hold about $37 million in WPP stock.
The stock sale isn't surprising. During the bidding last summer for New York-based Grey Global, there was strong speculation Meyer was seeking an offer that would allow him to cash out, a logical move for estate planning. Meyer was the controlling shareholder in thinly traded Grey, and he and his family didn't have an easy way to cash out. Taking WPP's widely traded shares gave him a ready way to turn his holding into cash. Now Meyer has nearly completed his conversion of Grey into green.
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