The Kansas City Business Journal reports that former McGladrey President (and former Andersen Global Managing Partner) C.E. Andrews had his employment contract terminated by H&R Block yesterday. But don't worry, his landing will be nice and soft:
According to a separation agreement, Andrews will receive cash payments totaling $957,226, minus deductions. He also will receive $3 million for successfully managing the sale of RSM McGladrey. Kansas City-based H&R Block (NYSE: HRB) sold its accounting services subsidiary to Minneapolis-based auditing firm McGladrey & Pullen LLP on Nov. 30 for $610 million. The sale had been announced in August, about a year and a half after the two companies were embroiled in an ugly legal dispute that involved McGladrey & Pullen trying to terminate its service agreement with RSM. In addition to the cash settlement and the payment for managing the RSM sale, Andrews will receive $1,000 a month for outplacement services for as long as 15 months. He agreed to a two-year noncompete and nonsolicitation provision. Andrews also is entitled to accelerated vesting of stock options to buy 20,292 shares of H&R Block common stock at $17.33 a share, 15,431 shares at $16.04 a share, and 11,019 shares at $12.59 a share.
I have to admit that I was initially a little confused by this, but after speaking to a McGladrey spokesperson, it all makes sense. When H&RB sold RSM McGladrey back to McGladrey & Pullen last year, Andrews was not part of the new management team (although he still has a bio on the McGladrey website). Since he didn't make the varsity team at the time of the sale, it was probably only a matter of time before The Block cut him loose.
But let's look to the future, shall we? Sinc he has a two-year noncompete and nonsolicitation provision, Jackson Hewitt is definitely out but does this preclude accounting firms? If not, there's definitely going to be an open spot at BDO soon. Of course, C.E. may have just been waiting for this moment so he can carry Natalie's bag full time. If you've got other career ideas for C.E., we'll entertain those now.