Edward A. Labry 3rd, the president of First Data Corp.'s commercial services unit, will get the biggest payoff - nearly $80 million - from stock options when his company sells itself to the New York private-equity company Kohlberg Kravis Roberts & Co.
In a Securities and Exchange Commission filing last week, the Denver processor detailed the compensation its top executives are expected to receive for cashing in their options and restricted shares.
His 4.72 million stock options have an average exercise price of $18.72, one of the lowest for any of First Data's top executives, and should earn him about $77.2 million.
He should receive an additional $1.55 million for his restricted stock.
Henry C. Duques, First Data's chairman and chief executive, had the second-highest number of options, 1.79 million, with an average exercise price of $23.42; he is set to earn $22.21 million for exercising his options and restricted stock.
David P. Bailis, the president of First Data's financial institution services division, will get $8.2 million, and Pamela H. Patsley, the president of its international division will get nearly $20.4 million.
In April 2, KKR agreed to buy First Data for $34 a share, or about $29 billion. The deal is expected to close this quarter. First Data's shares rose 0.15% Friday morning from Thursday's close, to $32.71.
Colin Wheeler, a spokesman for First Data, said that Mr. Labry's stock holdings are so much higher than those of other executives, including his boss, because of the acquisition that brought him to First Data.
Mr. Labry was the president of the Memphis debit company Concord EFS Inc., which First Data bought in 2004, and received a significant stock compensation package as part of that deal.
Larry Berlin, an analyst for First Analysis Securities Corp. in Chicago, said that the other executives may have had additional options that were exercised in the past. However, the "bottom line" is that "Ed's making a good amount of money."
