Either way, investors lose…
Last week, Standard Management Corp. Received approval from insurance regulators in Indiana to sell off its subsidiary, Standard Life Insurance Co. of Indiana. As the company noted in this release, that decision prompted its longtime CFO, P.B. “Pete” Pheffer, to resign. But Pheffer, who in 2003 made $350K, is looking for considerably more now that he’s left the company: ten times more to be exact. Pheffer, who sat in on the sale negotiations according to the SEC filings, claims that he is owed $3.8 million because the $82 million sale to Capital Assurance Corp. of Kentucky prompted a change in his “authority, power, function, duties and responsibility” under his employment contract which was set to expire in January. Standard Management, however, is only willing to fork over $50,000.
Cue the lawyers. Earlier this week, Pheffer told the Indy Star in this article that he would sue if necessary. No doubt that Standard Management has already had several meetings with their legal team. Even in Indiana, lawyers aren’t cheap and investors will undoubtedly wind up footing the bill. Then again, Standard Management investors ought to be used to losing, judging by this chart.