Expedia Hit With Derivative Suit Over CEO Compensation
By Matt Chiappardi (December 13, 2013, 8:25 PM EST) -- An Expedia Inc. investor lodged a derivative lawsuit Friday in Delaware court alleging the board broke corporate rules by agreeing to vest a 400,000-share restricted stock unit to Expedia's CEO even though performance targets hadn't been met for years, then tried to "cover up its misconduct."
Shareholder Julie Friedman claims Dara Khosrowshahi was first promised the RSU award in 2006, but on the condition that he achieve performance goals related to operating income or earnings targets. Six years later, the CEO had yet to hit the marks, but negotiated a new employment agreement with Expedia that allowed accelerated vesting of the...
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