Offering frequent news and analysis from the majestic Evergreen State and beyond, The Cascadia Advocate is the Northwest Progressive Institute's unconventional perspective on world, national, and local politics.

Tuesday, August 01, 2006

Safeco shareholder sues McGavick

Safeco shareholder Emma Schwartzman (who is the great, great granddaughter of a Safeco founder) today announced the filing of a lawsuit on behalf of Safeco shareholders against former CEO Mike McGavick.

The lawsuit claims that McGavick wasn't entitled to the $28 million payment he received from Safeco after he resigned as chief executive officer. Additionally, the suit claims Safeco's board violated federal securities laws by concealing the magnitude and extraordinary nature of the payout.

Schwartzman appeared at a press conference with her attorneys, declaring:
If you or I take money that doesn’t belong to us, it’s called theft. When a Board of Directors and their CEO do it – that’s called corporate waste. Mike McGavick didn’t earn the $28 million, he knew he wasn’t entitled to it, but he took it anyway.

I have brought this lawsuit to protect the assets and integrity of Safeco Corporation -- a company that is important to me, my family, and my community.
Her attorneys also made it clear the Democratic Party (and the Republican Party, for that matter) had no knowledge of the lawsuit today. More information is available here.

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