- 10 - buys out a tenured position at approximately three times the individual’s annual salary. At the time, Mr. Reisman was earning approximately $100,000 per year exclusive of benefits. Mr. Goldfarb testified that $300,000 was paid for Mr. Reisman’s resignation of his position and relinquishment of his tenure rights, and $50,000 was paid to “close the deal” and settle all litigation. Mr. Makee negotiated the final settlement agreement on behalf of the university along with attorney Mr. Goldfarb.4 Mr. Makee also testified that the $300,000 offered to buy out Mr. Reisman’s tenured position was based on three times his salary and that the additional $50,000 was paid to settle the litigation. Mr. Makee testified that the university was looking at the additional payment from a litigation management point of view. According to Mr. Makee, the university had been very successful in the Federal case but there was a pending appeal in the Sixth Circuit and “appeals are very expensive.” Additionally, the university was aware that it would incur additional legal services and costs in the pending State case. According to Mr. Makee, CWRU was taking into consideration future litigation costs when it authorized the increased settlement agreement amount and that the university did not intend to 4Mr. Goldfarb was also an attorney with Kelley, McCann & Livingstone when the settlement agreement was drafted.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011