Riggio in June 2012 agreed to pay $29 million to settle suits that alleged he unfairly rewarded himself and wasted company assets.
The resolutions in these cases -- a payout to plaintiffs and a slightly sweetened offer to shareholders -- are the most common ways such suits are resolved, according to Gordon.
For companies hoping to fend off suits, removing the CEO from the process is critical, said Gordon, because that executive would otherwise be on both sides of the negotiating table.
“You would be asking him to do something that not even the most ethical, saintly person on earth could do,” he said.
Be the first to comment on this post using the section below.