John R. and Sara E. Wise - Page 5

                                        - 5 -                                         

          a written response from Mr. Creighton. However, petitioner was              
          repeatedly assured he would receive a written contract.                     
          The Termination                                                             
               On a Friday evening sometime in April 1989, Mr. Creighton              
          telephoned petitioner to inform petitioner that his employment with         
          WMC was being terminated effective immediately. Petitioner inquired         
          as to the amount WC would pay him in connection with the                    
          termination of his employment. Mr. Creighton offered petitioner             
          approximately $560,000.1  Petitioner rejected Mr. Creighton's               
          offer.                                                                      
               The following day Mr. Creighton telephoned petitioner again,           
          offering approximately $700,000 in connection with the termination          
          of petitioner's employment.  Petitioner rejected this second offer,         
          suggesting that he would only accept a figure greater than $1               
          million. Mr. Creighton replied that he would discuss this                   
          counteroffer with Mr. Weyerhaeuser.                                         
               On Sunday, the following day, Mr. Creighton telephoned                 
          petitioner, offering $1,125,000 in connection with the termination          
          of petitioner's employment.  Petitioner accepted this offer.                



               1    It appears that Mr. Creighton computed the $560,000               
          figure by multiplying petitioner's annual salary by two.  This              
          amount was far in excess of the amount called for by WC's formal            
          severance pay plan.  (According to the severance pay plan in                
          effect at the time, qualified individuals were "eligible to                 
          receive one weeks' [sic] earnings up to a maximum of eight weeks'           
          earnings, for each year of credited service".)                              




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

Last modified: May 25, 2011