Avantax CEO in line to receive $21.6 million golden parachute

investmentnews.com:

While 3,100 Avantax Inc. financial advisors likely to get slim bonuses or none at all once the sale of the firm to Cetera Holdings is complete, the chief executive of Avantax, Christopher Walters, could walk away with a golden parachute worth $21.6 million, according to a filing with the Securities and Exchange Commission last week.

Todd Mackay, the head of the broker-dealer Avantax Investment Services Inc., is in line to receive close to $6.1 million, according to the filing. a preliminary proxy statement relating to the acquisition of the firm by Cetera.

The dollar amount for each executive is a split between cash and equity, with Walters to receive $6.3 million in cash and $15.3 million in equity. Mackay’s cash/equity split is $2.5 million and $3.6 million, respectively.

Each bonus is roughly three times what the executives earned in total compensation in 2022, according to the proxy filing for Avantax. Walters earned $7.9 million in total compensation last year and Mackay $2.3 million.

The golden parachute sums, considered to be a bit rich by some industry executives, are part of a package of measures that await shareholder approval.

Cetera, a giant network of broker-dealers, said in September that it was buying Avantax, a tax-focused broker-dealer stocked with certified public accountants, for $1.2 billion in cash.InvestmentNews reported last week that it looked as if very few Avantax advisors will get a New Year’s gift in the form of “transition assistance,” or a stay bonus, and for those who do, it will be slim pickings.

Avantax did not comment by deadline.

“Kudos to those guys for getting the deal done and getting that kind of money but it’s jaw-dropping that’s what they’re getting paid,” said one industry