Court orders foundation chief to give up $5.3 million in comp — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Court orders foundation chief to give up $5.3 million in comp

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Texas’ Third Court of Appeals in Austin recently upheld a jury’s order that Carl Yeckel, the former president of the board of directors at the Carl B. & Florence E. King Foundation, give up $5.3 million in excess compensation that he and other board members allegedly authorized for themselves.

However, the appeals court denied the jury’s bid to nullify Yeckel’s $10.8 million retirement contract. The court also overturned the jury’s punitive damages award, which had totaled $10.3 million, finding that the panel had failed to find clear and convincing evidence of malice.

The jury had found in 2004 that Yeckel and other former board members had breached their fiduciary trust by allowing Yeckel to increase salaries as much as 26% per year. The King Foundation alleges that Yeckel and a co-defendant also had forged retirement agreements according to which they would receive 75% of their final year’s salary annually for life.

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