The $700,000 part-time job at Enterprise

There’s always a lot of interesting stuff buried in the footnotes of company SEC filings. A recent gem at Enterprise Products Partners discovered by the folks at footnoted.org goes as follows:

But the filing also provides some details about one of the company’s part-time employees, Arlen B. Cenac Jr. After a little digging, we learned (on page 76) that in February, 2008, Enterprise Products Partners:
“…entered the marine transportation business for refined products, crude oil and condensate through the purchase of 42 tow boats, 89 tank barges and the economic benefit of certain related commercial agreements from Cenac Towing Co., Inc., Cenac Offshore, L.L.C. and Mr. Arlen B. Cenac, Jr., the sole owner of Cenac Towing Co., Inc. and Cenac Offshore, L.L.C. (collectively, ‘Cenac’), for approximately $444.7 million in cash and newly issued TEPPCO units. Additionally, we assumed $63.2 million of Cenac’s long-term debt. We financed the cash portion of the acquisition consideration and repaid the assumed debt with borrowings under the TEPPCO Short-Term Credit Facility.”
Thus, that deal produced almost $508 million in cash, stock, and debt relief for Cenac’s company. But 18 months after Cenac sold his company, the deal got even sweeter.
The filing says that effective August 1, 2009, the transitional operating agreement was terminated and Mr. Cenac became an employee of EPCO. And then it said:
“Concurrently with the termination, our marine services business entered into a two-year consulting agreement with Mr. Cenac and Cenac Marine Services, L.L.C. under which Mr. Cenac has agreed to supervise our marine services business’ day-to-day operations on a part-time basis and, at our marine services business’ request, provide related management and transitional services. The agreement entitles Mr. Cenac to $500,000 per year in fees, plus a one-time retainer of $200,000.”
For a student who’s about to spend much of her winter break babysitting, working at a reception desk, and digging through SEC filings in order to defray the costs of college, the thought of a part-time job that pays $1.2 million over two years is unfathomable – especially in light of the fact that the three jobs I’m working will only make me a tiny fraction of that.

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