Skarzynski Resignation Explained
Pres./CEO Did Not Make In-Home Visit He Testified He Had
January 12, 2010 at 7:48 AM (PT)
ARBITRON has made public the reason MICHAEL SKARZYNSKI resigned as Pres./CEO of the company yesterday in an investor meeting TODAY (1/12).
VP/CFO SEAN CREAMER told the meeting that SKARZYNSKI testified before Congress in NOVEMBER 2009, that he had personally participated in an in home training visit. ARBITRON said that while members of the company did, in fact, visit the home in question, SKARZYNSKI was not at that meeting. His testifying that he did was the cause of his resignation.
In the wake of the resignation YESTERDAY (NET NEWS 1/11) of ARBITRON President/CEO MICHAEL SKARZYNSKI, comes information via an SEC 8-K filing regarding SKARZYNSKI's severance.
"On JANUARY 11, 2010 and in connection with MICHAEL P. SKARZYNSKI’s resignation from ARBITRON INC. (the "Company"), the Company entered into a Settlement Agreement and General Release (the "Agreement") with Mr. SKARZYNSKI. The material terms of the Agreement are as follows:
* The Company will pay Mr. SKARZYNSKI a total of $750,000 in cash less applicable taxes.
* If Mr. SKARZYNSKI and/or his eligible dependents become eligible for COBRA coverage under the Company’s group health plans, the Company will pay the cost of COBRA coverage until the earlier of: (i) DECEMBER 31, 2010 or (ii) none of Mr. SKARZYNSKI and/or his eligible dependents are eligible for COBRA coverage.
* The Company will not to seek reimbursement from Mr. SKARZYNSKI of approximately $125,000 in relocation monies that would otherwise have been due to be repaid by Mr. SKARZYNSKI pursuant to the terms of Mr. SKARZYNSKI’s Executive Employment Agreement.
* The Company will indemnify Mr. SKARZYNSKI for reasonable attorney’s fees and costs incurred through the effective date of the Agreement in connection with matters that culminated with his resignation in an amount not to exceed $100,000.
* The Company will continue to cover Mr. SKARZYNSKI under its Directors and Officers insurance policies for actions/inactions taken in his capacity as an officer and director of the Company during the term of his employment.
The non-competition, non-recruitment and non-disparagement provisions set forth in Mr. SKARZYNSKI’s Executive Employment Agreement will survive his resignation, and Mr. SKARZYNSKI has agreed to continue to abide by those provisions.
The equity awards made to Mr. SKARZYNSKI on JANUARY 13, 2009 pursuant to his Executive Employment Agreement will not vest as a result of Mr. SKARZYNSKI’s resignation."