Company founder Vin Gupta is to receive $10m as part of a severance agreement from ORC-owner infoGroup. The company filed its delayed second-quarter earnings report with the SEC yesterday, revealing that soaring costs reduced quarterly net income by almost 32% to $4.3m despite a 17% increase in revenue to $187.2m.
Expenses rose nearly 23% to $176.5m in the second quarter, with the internal investigation costing $16.2m as of the end of July.
Gupta will receive $5m within 60 days of his resignation and the same amount after the company's 2009 annual meeting. The total amount will more than cover the $9m he has agreed to pay the company over the next five years. Gupta, who owns 40% of the firm's stock, has also agreed not to buy any more in the next eleven months.
The SEC filing also reveals that as part of the settlement, directors George Haddix, Vasant Raval and Elliot Kaplan will resign from the board.
The firm has already said it will begin recouping expenses by selling the 80-foot yacht, which presumably means a return to the job market for its reportedly all-female crew.
infoGroup's shares have risen following the news of the settlement. Web sites are at www.infousa.com and www.opinionresearch.com .
All articles 2006-20 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.