Biotech Dismisses CEO After An Internal Probe
August 25th, 2011 // 2:06 pm @ jmpickett
They say that numbers tell a story. Well, after the stock market closed today, Oxygen Biotherapeutics disclosed that ceo Chris Stern was dismissed for cause in connection with an investigation by the board of directors audit committee. As a result, he will not be paid any severance package, according to a filing with the US Securities and Exchange Commission.
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The SEC filing noted that the investigation concerned his “conduct†and “its potential impact†on the biotech, which is developing medical and cosmetic products that are supposed to deliver oxygen to tissues in the body (read more here). The board appointed cfo and treasurer Michael Jebsen as interim ceo. Stern, 54, joined the Oxygen board in November 2007 as chairman and became ceo in March 2008.
An Oxygen spokeswoman says “this was an internal investigation and discovered through internal controls and procedures,†but declined to provide further details. She did say, however, that she is not aware of any investigation by any other entity, such as the SEC, into this episode and that the biotech had not requested authorities to pursue an investigation.
Last May, Stern signed a one-year employment agreement that was to have paid him an annual base salary of $300,00; an annual cash bonus of 50 percent of that salary based on achieving certain goals, a fixed monthly car allowance of $800; a monthly $2,500 payment to his consulting company for secretarial support, and health insurance. He was also entitled to an annual grant of 16,800 shares of restricted common stock that was to have vested monthly over a 12-month period . The Oxygen spokeswoman tells us that, as of now, there has been no indication that the biotech would look to clawback any payments to Stern.
Source: Pharmalot
