InfoGroup exec paid $1 million to go away…
Last week, InfoGroup (IUSA) announced that CEO Vinod Gupta was stepping down, but would remain a director of the company. As various news outlets reported the resignation was part of a settlement of a lawsuit filed by hedge fund Dolphin Limited and investment manager Cardinal Value.
The lawsuit had a long list of complaints over how Gupta was spending the company’s money, including on consulting fees for former President Bill Clinton and the use of the company’s seven corporate jets to fly various people, including Bill and Hillary Clinton, around. There was also a yacht, a skybox at the University of Nebraska and various houses that came into the mix.
Of course, the company waited until late Friday to file both the 60-page settlement and the separation agreement with Gupta. The separation agreement is pretty standard — other than the $10 million payment for Gupta to go away. But combining that with the settlement agreement — which stretches on for 60 pages — makes for much more interesting reading. Under the settlement agreement, Gupta has to pay the company $9 million.
So despite all of the controversy, the hefty legal fees and the bad publicity, Gupta is still making $1 million on the deal. No wonder this was filed late on a summer Friday.
UPDATE: Portfolio.com has some additional details (and math) on this filing here.