While nobody at IBM would dispute that its former head of M&A, David Johnson, was putting in some serious hours, they are taking issue with the fact that he spent a good deal of that time preparing to launch a technology focused VC firm, JSJ Capital Management. Johnson's indiscretions ran a bit deeper than egregious use of the copy machine and ordering dinner. He once used an IBM funded trip to the Middle East to double as a JSJ roadshow and then administered another swift kick in the teeth last May.
Having spent 30 years at IBM, Johnson recently decided to take a job at Dell which, according to IBM, violates a non-compete agreement he signed 4 years ago and, consequently, IBM is suing. Remarkably, Johnson wins either way as Dell agreed to pay him $1 million in annual compensation if IBM's suit delays his start date and prevents him from divulging every last piece of proprietary information.
IBM Says Ex-M&A Head Used Its Resources to Start Firm [Bloomberg]