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Talk of the bay
Debt forgiveness is part of CEO's exit package
By JEFF HARRINGTON
Published March 7, 2005
Often, chief executives enjoy a potpourri of financial goodies when they sever their ties with a company, even on cool terms.
In Jim Green's case, it was less a case of what he took when exiting Digital Lightwave than the debt he left behind.
Digital wiped out about $374,000 that Green owed from loans advanced by the company. The tech company also gave the exiting CEO any salary due and vacation time accrued (equal to $21,219), according to filings with the Securities and Exchange Commission.
Green has until Aug. 15 to exercise an option to buy 208,334 shares of stock at a strike price of $1.42 a share. Digital's stock currently is trading for $1 a share.
For his part, Green, who held Digital's top job for 21/2 years, agreed not to sue the company or compete directly with Digital for two years.
Robert Hussey, a Digital board member now acting as interim CEO, will be paid a base salary of $300,000. He also has an option to buy 250,000 Digital shares at an exercise price of $1.11.
[Last modified March 4, 2005, 19:34:02]
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