Chapter 24 - Victor’s last defense
Victor’s lawyers produced an email from me.
Nine years earlier.
Subject:
Q3 labor
My message:
I need labor below 29% before lender review. Do what it takes within policy. No excuses.
Victor argued:
“That pressure caused everything.”
The email was real.
I hated reading it.
Independent counsel asked:
“Did Arthur direct unlawful deductions?”
No.
“Did phrase ‘do what it takes’ reasonably create pressure?”
Yes.
“Did Victor have responsibility to keep implementation within law and policy?”
Yes.
“Did Arthur?”
As executive chair?
Also yes, at governance level.
Then current board reconsidered its internal report.
Added:
Founder pressure and incentive design materially contributed to culture enabling improper deductions.
No attempt to protect me.
Good.
Victor wanted termination-for-cause reversed because responsibility was shared.
Shared responsibility does not necessarily erase his own.
Arbitrator heard final arguments.
Then Victor made a settlement offer.
He would:
Waive severance.
Repay $95,000 of disputed bonus.
Release company claims and be released from certain civil claims.
Keep vested retirement.
Company would state he “separated following governance and compliance findings” rather than public language accusing him of fraud.
Crown Bridge settlement separate.
Board countered:
$150,000 repayment.
No severance.
Full release except intentional fraud unknown.
Negotiations.
No immediate agreement.
Then Victor called me privately.
I did not answer.
He left voicemail:
“Arthur, if this goes to award, both of us look worse.”
Maybe.
I forwarded to counsel.
No private deal.
That was another thing I had learned.
People who ran companies together for decades should not resolve corporate claims in whispered phone calls because family feelings became uncomfortable.
Then Sarah asked:
“Do you hate him?”
“No.”
“Really?”
“I hate what he did.”
“Different?”
“Yes.”
She nodded.
“I hated you for years.”
I waited.
“Different from hating what you did?”
She thought.
“Not at first.”
Fair.
Then:
“I don’t hate you now.”
I looked at her.
She immediately raised a hand.
“That is not forgiveness.”
“I know.”
“It means I got tired.”
“I’ll take it.”
May you like
“Don’t.”
I smiled anyway.
