Please ensure Javascript is enabled for purposes of website accessibility
January 28, 2023

H&R Block Gave Former McGladrey President C.E. Andrews a Lot of Reasons to Stop Coming to Work

The Kansas City Business Journal reports that former McGladrey President (and former Andersen Global Managing Partner) C.E. Andrews had his employment contract terminated by H&R Block yesterday. But don't worry, his landing will be nice and soft:

According to a separation agreement, Andrews will receive cash payments totaling $957,226, minus deductions. He also will receive $3 million for successfully managing the sale of RSM McGladrey. Kansas City-based H&R Block (NYSE: HRB) sold its accounting services subsidiary to Minneapolis-based auditing firm McGladrey & Pullen LLP  on Nov. 30 for $610 million. The sale had been announced in August, about a year and a half after the two companies were embroiled in an ugly legal dispute that involved McGladrey & Pullen trying to terminate its service agreement with RSM. In addition to the cash settlement and the payment for managing the RSM sale, Andrews will receive $1,000 a month for outplacement services for as long as 15 months. He agreed to a two-year noncompete and nonsolicitation provision. Andrews also is entitled to accelerated vesting of stock options to buy 20,292 shares of H&R Block common stock at $17.33 a share, 15,431 shares at $16.04 a share, and 11,019 shares at $12.59 a share.
I have to admit that I was initially a little confused by this, but after speaking to a McGladrey spokesperson, it all makes sense. When H&RB sold RSM McGladrey back to McGladrey & Pullen last year, Andrews was not part of the new management team (although he still has a bio on the McGladrey website). Since he didn't make the varsity team at the time of the sale, it was probably only a matter of time before The Block cut him loose.
 
But let's look to the future, shall we? Sinc he has a two-year noncompete and nonsolicitation provision, Jackson Hewitt is definitely out but does this preclude accounting firms? If not, there's definitely going to be an open spot at BDO soon. Of course, C.E. may have just been waiting for this moment so he can carry Natalie's bag full time. If you've got other career ideas for C.E., we'll entertain those now.
 

Latest Accounting Jobs--Apply Now:

Have something to add to this story? Give us a shout by email, Twitter, or text/call the tipline at 202-505-8885. As always, all tips are anonymous.

Comments are closed.

Related articles

Which Firm Was the Biggest Loser In the Third Auditor Shuffle of 2021?

Are y’all ready for the results of the third auditor round-and-round of 2021? OK. Here we go. It was another big quarter for BF Borgers, which added the most new SEC clients with nine while losing one for a net of eight, according to Audit Analytics’ third quarter audit gains and losses analysis. BF Borgers […]

Which Firm Was the Biggest Loser In the Second Auditor Shuffle of 2021?

The auditor round-and-round continued in the second quarter of 2021, with everyone’s favorite public accounting firm with a Lettuce Entertain You restaurant sounding name, BF Borgers, netting nine new SEC clients, the most of any audit firm, according to the Q2 auditor changes roundup from Audit Analytics. And as Accounting Today noted in its post […]