John R. and Sara E. Wise - Page 4

                                        - 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 receive         

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  Next

Last modified: May 25, 2011