A former Fidelity Investments executive is fighting for 3,875 incentive stock options that he believes he is due based on how Fidelity vested its options with other employees.
Mark P. Sullivan
filed the suit in Middlesex Superior Court two weeks ago, reports the Boston Globe
. A Fidelity spokesperson told the paper that the claim is "without merit." The suit does not place a monetery value on the options.
Sullivan's suit contends that Fidelity officials administered three incentive compensation plans "in an inconsistent, arbitrary and capricious manner," that allowed some employees to receive payment for unvested options when they left. In other cases, Fidelity refused to pay the options.
He also contends that the three compensation plans did not require the participants to remain employed at Fidelity in order for the options to vest.
Sullivan's suit seeks payment for unvested ISOs covering 1,700 shares that would vest at the end of 2010 and another 1,200 shares that would vest at the end of 2012. He also contends that Fidelity is improperly refusing to redeem 975 options that vested at the end of 2009. Fidelity did pay Sullivan for 2,160 fully vested options when he left at the end of 2008.
Sullivan was the chief financial officer for Fidelity Employer Services Co. (FESCo) when he was terminated from the company at the end of 2008. He joined Fidelity in 1994.
FESCo had served Fidelity's corporate clients including HR related services and retirement. A reorganization at Fidelity has put many of these services under its Workplace Investing umbrella.
The 53-year-old Sullivan is now the CFO for Aspen Technology Inc. located in Burlington, Massachusetts.
Sean Hanna, Editor in Chief
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