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May 17 – May 23, 2010 Edition
Battle for Control of Barnes & Noble Heats Up
NEW YORK, NY/AUTHORLINK NEWS/May 18, 2010–The battle for control over Barnes & Noble, Inc. between billionaire Run Burkle, who wants to take over the company, and book business icon Len Riggio is heating up this month.
Burkle has filed a complaint in Delaware court alleging that the bookseller’s “poison pill” measure, which bars individual outside shareholders from owning 20% or more of the company “is unfair and directors have breached fiduciary duties of loyalty, care and good faith.”
On May 12, Barnes & Noble, Inc. filed an SEC report declaring Riggio as Chairman under a new employment contract effective that day. Riggio has long served as chairman of the company, but has never had a formal agreement to do so.
The shareholder issue will come up in September at the company’s annual meeting.
In addition to Len’s appointment, Stephen Riggio signed a similar Vice Chairman Agreement.
Len Riggio, who has been given an annual base salary of $100,000, will report directly to the Board. In addition, Mr. Riggio will be entitled to participate in the Company’s Executive Performance Plan, with a target bonus amount of not less than 150% of his annual base salary, and will also be eligible for grants of equity-based awards under the Company’s 2009 Incentive Plan. Mr. Riggio will also receive any benefits to which he is entitled under the employee benefits plans that the Company provides for its employees and executive officers generally.
Both Len and Stephen’s contracts are automatically renewable after one year, unless either party gives 90 day notice.
For more about Ron Burkle’s law suit, see full article from DailyFinance: http://srph.it/cHvrbH
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