Charles T. Fote gave up his job as First Data Corp.'s chief executive last week, but the Denver processor will pay him the same base salary, as a consultant: $1.1 million.
His consulting agreement runs through June 30, 2007. He will also will receive medical benefits, an office, and an assistant, according to a Thursday filing with the Securities and Exchange Commission. He will remain chairman until yearend and a director until the annual stockholder meeting on May 10.
First Data announced Monday that Mr. Fote had retired Saturday, for personal reasons. As his successor it named his predecessor, Henry C. "Ric" Duques, who was long the company's CEO and chairman. The two men are largely credited with making First Data the payment processing giant it is today.
The company said the 175,000 shares of First Data restricted stock that Mr. Fote holds will vest at yearend. He has agreed not to work for any competitors while an employee of First Data or consultant to it.
A company spokeswoman would not say what kind of consulting Mr. Fote will do.
First Data said Mr. Duques chose to receive a lower base salary - $250,000 - than Mr. Fote's in exchange for 850,000 stock options, half vested immediately and the remainder to vest in two years.
Robert J. Dodd, an analyst for Regions Financial Corp.'s Morgan Keegan & Co. Inc., said that retaining Mr. Fote as a consultant offers several benefits for First Data. One is that he can help ease Mr. Duques back into the CEO job; though Mr. Duques was CEO and chairman from 1992 to 2002, he has not been involved with the day-to-day activities since then, Mr. Dodd said.
The two men "were a winning team for a very long time," the analyst said.
