How Office Depot CEO’s Tried to Scam Shareholders and Didn’t Get Away With It!

jim · 2023-06-26T15:47:44-04:00

A Lawsuit Alleged Office Depot CEO’s Stock Award Violated Cap on Shares. The lawsuit, filed in Delaware Chancery Court, accuses ODP’s board of defying the company’s 2019 “long-term incentive plan” by handing CEO Gerry P. Smith more than 4.7 million shares in March 2020, despite a cap of 3.5 million. Extra shares awarded in 2020 to the chief executive of ODP Corp., which owns retail chains including OfficeMax and Office Depot, will be rescinded, under a settlement approved Wednesday by a Delaware judge. Because of a 10-to-1 “reverse stock split” last June, Smith actually got about 470,000 shares, Settlement negotiations began after Vice Chancellor J. Travis Laster denied the board’s motion to dismiss in May 2022. TRACK DOCKET: No. 2021-0420 https://news.bloomberglaw.com/us-law-week/settlement-ends-claims-that-office-depot-parent-overpaid-ceo

Tonernews.com, June 26, 2023. USA

This topic is empty.

Viewing 1 post (of 1 total)

Author

Posts
#412337

jim
Keymaster

A Lawsuit Alleged Office Depot CEO’s Stock Award Violated Cap on Shares. The lawsuit, filed in Delaware Chancery Court, accuses ODP’s board of defying the company’s 2019 “long-term incentive plan” by handing CEO Gerry P. Smith more than 4.7 million shares in March 2020, despite a cap of 3.5 million. Extra shares awarded in 2020 to the chief executive of ODP Corp., which owns retail chains including OfficeMax and Office Depot, will be rescinded, under a settlement approved Wednesday by a Delaware judge. Because of a 10-to-1 “reverse stock split” last June, Smith actually got about 470,000 shares, Settlement negotiations began after Vice Chancellor J. Travis Laster denied the board’s motion to dismiss in May 2022.

TRACK DOCKET: No. 2021-0420
https://news.bloomberglaw.com/us-law-week/settlement-ends-claims-that-office-depot-parent-overpaid-ceo
Author

June 26, 2023 at 3:47 PM

Viewing 1 post (of 1 total)

You must be logged in to reply to this topic.

The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty, or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action based on the content on our site.