A reader plucked this tid bit from Move.com’s recent filings (8K).
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
On February 27, 2008, Move, Inc. (the “Company”) executed a letter agreement (“Letter Agreement”) with Alan Dalton, President, New Business Venture, and an accompanying mutual release of claims (the “Release”). The agreements provide that Mr. Dalton voluntarily resign as President, New Business Venture effective as of February 29, 2008, but remain as a senior advisor to the Company.
Pursuant to the terms of the Letter Agreement, as senior advisor Mr. Dalton will receive a base monthly salary of $3,000, along with additional compensation for performing special project services. The scope of such services shall be mutually agreed upon by the parties in advance and in writing. Mr. Dalton’s compensation for the special project services is guaranteed at a minimum of $12,000 per month in accordance with Exhibit A to the Letter Agreement.
The Letter Agreement provides for a twelve month term but can be extended upon mutual agreement of the parties (collectively, the “Term”). If Mr. Dalton provides the services through the initial twelve month Term in accordance with the Letter Agreement, in conjunction with his execution of a full release of claims for the period covering the Term: (i) he shall have twelve months after the conclusion of the Term to exercise all of his outstanding vested options of the Company; (ii) Move will pay his Consolidated Omnibus Reconciliation Act of 1986 (“COBRA”) premiums for twelve (12) months following the Term’s conclusion, or until he obtains employment providing health insurance, whichever occurs first; and (iii) if he moves within twelve months of the Term’s conclusion, the Company agrees to reimburse his reasonable cost of shipping (via van lines) household belongings from California to the East Coast of the United States.
The Letter Agreement is only effective if Mr. Dalton does not revoke the Release within the seven day period stated in paragraph 5(b) of the Release, as provided by law. The Release, consistent with Mr. Dalton’s Executive Retention and Severance Agreement dated September 30, 2002, provides for: (i) a full mutual release of claims between the Company and Mr. Dalton; (ii) a severance payment of $675,000, less appropriate taxes and withholdings; and (iii) all of Mr. Dalton’s unvested options described in his September 30, 2002 offer letter and his subsequent stock option grants, to vest as of February 29, 2008.
The Release further provides that Mr. Dalton shall not be entitled to participate in any other bonus programs, including the 2007 Executive Bonus Plan, or receive additional stock options or other equity based incentives, and that he shall forfeit all right, title and interest in and to the restrictive stock unit awards previously granted to him.
The foregoing description of the Letter Agreement and the Release is qualified in its entirety by the terms of the agreements, which are attached hereto as Exhibits 99.1 and 99.2, and incorporated herein by reference.
In my opinion Alan deserves all of this and more….
March 11, 2008 at 2:03 am
[...] March 10, 2008 by Dustin …departure package from Move. [...]
March 13, 2008 at 12:20 am
Are you KIDDING me??? As a former insider at the company I can tell you that NOTHING Allan did was worth this amount of money. The most valuable thing he was given in his departure package was the right to “voluntarily resign” rather than suffer the indignity of being shitcanned. It was a long time coming and they just needed to figure out a graceful way to make it happen.
March 13, 2008 at 11:26 am
I respectfully disagree. Alan has always been a true gentlemen and very well respected in the industry. His speaking skills and sharp wit are legendary. It’s not an easy task to join a company that was knee deep in scandal. He had to work his butt off and risk his own personal reputation.
I said this before but it’s the man in the arena that counts. http://vendoralley.com/2007/12/05/viva-knievel/
Viva Dalton!
March 17, 2008 at 12:54 pm
In the industry, perhaps, although many might question the term “gentlemen” following some of his public panel appearances.
Within the company-at-large (not his fellow management good-old-boys who want to keep him quiet and happy, but the company-at-large), his departure package is seen as highly exorbitant in relation to any value he’d brought in.
Also, Alan’s departure came at the same time that his much-hyped “New Business Venture” unit within the company was officially dissolved for its complete lack of accomplishment.
In many’s opinion, what Alan deserves he will not get, simply because it would also be bad PR for Move.