[Info-vax] HPE going after Mike Lynch's estate

[Arne Vajhøj]

On 9/16/2024 2:18 PM, Simon Clubley wrote:
> On 2024-09-16, Arne Vajhøj <arne at vajhoej.dk> wrote:
>> On 9/16/2024 8:31 AM, Simon Clubley wrote:
>>> Can I assume that, in order to protect the shareholders, they intend to
>>> go after the HP management who made the purchase decision in the first place
>>> without carrying out the due diligence checks before buying Autonomy ?
>>>
>>> No, I didn't think so. :-(
>>
>> The acquisition was done in the very short reign of Leo Apotheker.
>>
>> According to Wikpedia he got 7.2 M$ in severance pay, 3.56 M$
>> in shares and a performance bonus of 2.4 M$ when he was kicked out
>> after 10 months.
>>
>> And he has done rather well as member/chairman of various
>> companies boards since then.
>>
>> But he does not have 4 B$.
> 
> The point is to make an example of him for not following established
> procedures and hence costing them a _lot_ of money.
> 
> That way, future executives will be less tempted to do the same thing
> and hence the shareholders benefit.
> 
> These people get a _lot_ of money. They should have a level of
> responsibility that matches earning that amount of money.

I totally agree with that.

But unless there is a claw back clause in his contract,
then there is no way to move forward with that.

And I am a little bit puzzled that you believe that
the company should try and claw back severance/bonus
of a an ex-CEO for negligence in an
acquisition, because it may deter other CEO's from
doing the same, but you don't believe that the
company should try and claw back the gain of
company sale based on fraudulent accounting practices
from the company's CEO? The CEO avoided jail because
the court did not find it proven that he knew about the
fraudulent accounting practices, but while not knowing
is not an criminal offense, then it is still
negligence and clawing back the gain may deter other
CEO's from doing the same.

Arne