Senate Wannabee: Shareholder files suit regarding McGavick's $28 million

[banana republican]

A shareholder sued Safeco's former chief executive — U.S. Senate candidate Mike McGavick — and its board of directors on Tuesday, claiming they violated securities laws by awarding McGavick about $28 million in stock and other perks when he left Safeco earlier this year.

The lawsuit was filed by Emma Schwartzman, 27, a former waitress studying at the University of Washington who says her great-great-grandfather was a founder of the company that became Safeco.

The suit contends McGavick and the board "committed corporate waste" and made false statements to investors about the nature of McGavick's financial package.

http://seattletimes.nwsource.com/html/localnews/2003169003_mcgavicksuit02m.html

[banana republican]

1. From the Seattle PI

The state Democratic Party filed a complaint with the Federal Election Commission in April, alleging that the compensation package, coming after McGavick became a candidate, constituted an illegal corporate campaign contribution from Safeco.

Lowney said McGavick and Safeco agreed to "an illegal giveaway of Safeco assets" in an agreement last Dec. 6, after McGavick became a candidate, for him to provide transition services for the first two months of 2006, resulting in $28.4 million in Safeco income for 2006.

Lowney said it violated a contract McGavick negotiated when he became chief executive in 2001 that "clearly stated that if he resigned he would ... forfeit all compensation, including bonuses and stock options, and would get only his last paycheck."

http://seattlepi.nwsource.com/local/279742_mcgavick02.html