Galena Fires CEO Ahn, Offers No Parting Gifts
Galena Biopharma (GALE - Get Report) dribbled out more details about the firing of CEO Mark Ahn in a regulatory filing Friday night.
The parting of the way between Ahn and the scandal-ridden biotech company was not amicable.
Galena's latest 8-K:
In accordance with the terms of his employment agreement dated as of March 31, 2011, as amended by the first amendment thereto dated as of May 8, 2014, no severance or other compensation is payable to Dr. Ahn. There was no additional or accelerated vesting of Dr. Ahn's stock options, and the options that were vested as of his resignation will remain outstanding and exercisable in accordance with their respective terms. [Emphasis mine.]
CEOs who leave companies on good terms get cushy severance packages. Ahn did not.
From Galena's last proxy statement, here's how Galena would have treated Ahn's departure "without cause."
The employment agreement provides that if we terminate Dr. Ahn's employment without "cause" (as defined in the employment agreement) during the Term or if he terminates his employment for "good reason" (as defined in the employment agreement) then he is entitled to: (i) continue receiving his then current annualized base salary and medical benefits for a period of twelve months following such termination (the "Severance Period") and (ii) continued vesting for his option for the duration of the Severance Period.
Ahn was fired by Galena's board for cause.
On Saturday, Ahn sent the following email to his friends and business contacts:
Apologies for the mass email, but I wanted to let you know I left Galena Biopharma after serving seven years on the board and/or CEO. I'm looking forward to the new adventure and truly appreciate your thoughtful messages.
Below and attached are my same permanent coordinates in Portland. Take care, have a wonderful end of Summer, and hope to see you soon.