Wednesday, August 02, 2006

McGavick's $28 million Months

Pacific Views explains why McGavick (and the board of directors at SafeCo) is being sued by a shareholder.

In short, McGavick's contract stated that if he resigned, he lost all bonuses and stock options. He resigned for Senate run. The Board then gave him a new contract that gave him back all the stock options and bonuses (to the tune of $28 million) for two months' "work" transitioning.

Emma Schwartzman, who is suing, claims that amounts to fraud for various reasons, not the least of which is that it was kept hidden improperly from shareholders.

$28 million for two months? Nice work if you can get it.

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