Thursday, December 20, 2007

Ahold Receives $8 Million Settlement from Former CEO of Subsidiary


Ahold announced that it reached a settlement agreement with James Miller, who had been the CEO of its former subsidiary U.S. Foodservice. Miller will pay Ahold $8 million, and the litigation between the parties will be dismissed.


The $8 million constitutes a portion of the salary and bonuses Miller received as CEO during an accounting scandal, reported the Baltimore Sun and the Maryland Daily Record. Miller, who had founded U.S. Foodservice, had sued Ahold in February 2004, claiming that the company had reneged on its promises of severance pay and benefits. The company counterclaimed, alleging breach of fiduciary duties and his employment agreement.


The company exaggerated profits by $880 million over three years. Other executives were charged with securities fraud, conspiracy, and making false filings, but Miller was never charged.

 

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