An arbitrator has awarded former Competitive Technologies CEO John Nano the $750,000 he believed due him under an employment contract. And the award comes despite a number of purported misdeeds; he was terminated last year for allegedly engaging in willful misconduct and gross negligence, according to Fairfield, CT-based Competitive Technologies.
The company, which makes the non-invasive Calmare pain therapy medical device, provided great detail about Nano's misdeeds in a September 2010 SEC filing. For example, Nano allegedly made a contract on behalf of the company with his son, but failed to say anything to the board. "Mr. Nano had the company pay his son's relocation costs from Pennsylvania to Connecticut even though consultant relocation is not reimbursed under company policy and reimbursement was not authorized by the board. Mr. Nano approved his son's consultant invoices and had the company pay state sales taxes on his son's invoices for services."
But Nano didn't go away quietly. He allegedly told a director and an outside contractor he would "take actions 'to destroy the company'" if the compensation in his existing contract were not paid in full.
The company says it is analyzing the arbitrator's decision document to determine its future course of action. But it strongly believes its board "exercised its reasonable discretion in finding that the former executive engaged in willful misconduct and gross negligence and that the executives actions were cause for employment termination under the employment agreement and governing law," according to a statement
- see the Competitive Technologies release