Adelphia May Withdraw Rigas' $4.2 Million Severance
Adelphia Communications has apparently decided not to pay former CEO John Rigas his $4.2 million severance package, according to a news report in the Wall Street Journal
To date the company has made no severance payments to Rigas, who retired in May, as the company was headed to bankruptcy. As part of the package the board had earlier agreed to pay, Rigas was to get $1.4 million a year for three years. Two months later, federal prosecutors charged Rigas and his two of his sons for illegally taking making use of company funds.
The Journal said that Adelphia has not decided whether to take any additional actions relating to unspecified non-cash aspects of Rigas' severance. This includes healthcare for life for Rigas and his wife, the use of an office, equipment and secretary, plus use of company planes for emergencies.
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