Financial Accounting Blog

Saturday, June 19, 2004

Several Milacron Execs Turn In Stock Earlier Than Expected Milacron CEO Ron Brown was among a handful of company officials that were forced to prematurely turn in restricted shares of company stock in order to appease income tax requirements.
The moves were made necessary be the recent change in control of the corporation. The change of control was effective last week when Milacron completed a financial restructuring after shareholders approved a series of measures at the annual meeting.

The restructuring left majority control of the company in the hands of two foreign investment firms that kicked in $100 million to pay off debt coming due. The change in control in turn caused certain restricted shares held by Milacron executives to vest immediately, triggering a need to withhold income taxes on the value of those shares.