Drilling down into the OR
Wednesday, Jan 29, 2014
* Let’s revisit Greg Hinz’s interview of Bruce Rauner’s about convicted influence peddler Stu Levine…
* OK, first of all, let’s go to the April, 1999 SEC filing when the Compbenefits company was bought…
The table shows that two GTCR funds were slated to own slightly over 40 percent of the new company’s stock. So, you’d think that Rauner’s firm would be looking at the company’s numbers pretty darned closely.
* A few months after that April, 1999 SEC filing, Rauner said this to the Wall Street Journal…
* And this is where it gets interesting. Greg Hinz doubted yesterday that “too many people at just one firm made $300,000 a year.” Turns out, he was absolutely right.
Another 1999 SEC filing shows executive compensation at the medical-services company bought by Rauner’s firm.
* In other words, Stu Levine’s $25K per month contract meant he was making more than the CEO and COO the year before the merger.
And yet, somehow this escaped Rauner’s notice.
As former TRS executive director Jon Bauman told Hinz, “On one hand, GTCR was one of four owners in a company that was one of maybe 80 to 100 in (its) portfolio. On the other, limited partners pay general partners (like GTCR) a good fee to know what’s going on in their portfolio companies and to be accountable for them. I’m missing the accountability here.”
* But, even so, other partners were in charge of the acquisition, and GTCR does have a whole lot of companies in its portfolio, so maybe Rauner really didn’t know. But it’s just a bit more difficult to take him at his word with this new information.