- 4 - would be "fair" with petitioner if WMC were sold. Petitioner was not satisfied with this general assurance; he wanted a long-term employment contract in writing, with a substantial severance pay provision in the event of WMC's sale. From 1983 to 1989, the value of RFSL's assets increased from $600 million to $2 billion. Petitioner believed he was primarily responsible for building and increasing the value of RFSL and of WMC; therefore he wanted to be adequately compensated in the event of WMC's sale. Mr. Creighton informed petitioner that a long-term written employment contract would be forthcoming. In early 1989, Mr. Weyerhaeuser announced to WC's senior management that the company had decided to liquidate its noncore businesses. WMC and RFSL were part of WC's noncore enterprises. Mr. Creighton and petitioner continued their discussions regarding a long-term employment contract for petitioner. On January 4, 1989, petitioner wrote a letter to Mr. Creighton, memorializing petitioner's understanding of the proposed employment contract they had discussed. Petitioner understood that the terms of the forthcoming contract would include: (1) A provision entitling petitioner to a $280,000 annual base salary and a guaranteed incentive bonus of $70,000 annually over a period of 5 years; and (2) a severance package equal to 3 years of salary, or $1 million, in the event of WMC's sale. Petitioner did not receivePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
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