His commercials for Dart Drug Stores Inc. are off the air, but former chairman Stephen J. Hansbrough appears to still have a little influence at the company.
Documents filed with the Securities and Exchange Commission reveal that Hansbrough will continue to benefit handsomely as a result of his two-year tenure as Dart chairman -- including $750,000 in salary and a $250-an-hour consulting deal. Hansbrough resigned as chairman on Nov. 6, the day former Peoples Drug Store Inc. chairman Sheldon W. (Bud) Fantle took over Dart by making an $8 million investment in the financially troubled chain.
Under an agreement with Dart, Hansbrough, 41, will receive three years' worth of his $250,000 annual salary. He was paid the first year's salary the day the takeover was completed, and the remaining money is due in a lump sum next Nov. 6.
Hansbrough also has a three-year consulting contract with the 81-store chain. The contract guarantees a rate of $250 an hour -- plus expenses -- up to a maximum of 15 hours a month. Expenses include reimbursements for using his car. Dart has agreed to advance Hansbrough $30,000 in anticipated expenses.
If Dart decides to end its consulting contract with Hansbrough before three years, the former chairman still stands to gain an additional $50,000 termination payment.
In exchange, Hansbrough has agreed to refrain for two years from going into a business that competes with Dart. He also has agreed not to buy more shares of the company's stock with the aim of trying to take Dart over.
Hansbrough could not be reached for comment yesterday.
Fantle said the agreement was "all part of the acquisition expense. I don't think it was an unfair settlement, given the fact he took the company through some difficult times and that at a young age he will be looking at a new career path.