When McData (MCDTA) announced last January that it had hired Wayne Morris to be its new senior vice president for worldwide marketing, it said that Morris would "be a tremendous value to McData as we grow our business."
Well, it didn’t exactly turn out that way. On March 13, McData filed an 8-K announcing that Morris had left the company on March 10, not even mentioning the oft-used "personal reasons" line. The 8-K noted that Morris would receive nine months of severance. But that’s not the whole story. In the proxy filed late Friday, the company disclosed that it had spent $220K to cover Morris’ relocation expenses. Granted, he appears to have moved from Australia to take the job at McData, which is based in Colorado. But that’s still a lot of money to spend on someone who lasted at the company for about a year.
Indeed, McData seems to have a bit of a history of being pretty generous when it comes to reimbursing moving expenses. In 2004, the company spent $122K to cover senior vp Gary Gysin’s move. And in 2003, it spent $120K on executive Jeff Vogel’s move, even though he had been at the company since 1998. A quick skim of McData’s filings reveals that Vogel no longer appears to work at the company. Even odder is that all three men — Morris, Gysin and Vogel — all had the title of senior vice president of worldwide marketing, so perhaps the big moving allowance is some sort of perk that comes with the job.