Things didn’t work out for Doug Pertz and audio electronics marker Harman International. Pertz was hired just last April and yesterday the company announced he was resigning. Pertz didn’t have much experience in the audio electronics business and apparently generic management skills weren’t cutting it. No hard feelings though, right? At least not on Pertz’s part. The shareholders may have a different perspective.
In the 8-K Harman filed late yesterday to announce the CEO change, it noted that Pertz is walking away with a severance payment of $3.8 million. That works out to about $48,000 a day for Pertz’s four months of work! The musical chairs certainly didn’t sit well with shareholders, who now have to bear the cost of signing yet another CEO. After all, compensation consultants aren’t cheap. Ditto for executive search firms. Investors responded to the resignation by pushing the stock down 4% yesterday, erasing all of the week’s gains.
Striking the wrong chord… [Footnoted.org]