Chapter 10 - My Corporate Mistake
I made another mistake the day after that meeting.
Alder Row’s transition agreement gave Genevieve a six-month consulting contract.
Purpose:
Vendor introductions.
Brand history.
Lease handoffs.
Compensation:
$18,000 per month.
High.
Short.
Part of negotiated sale.
After hearing her admit keeping reimbursements, I called Leah Chen.
“Terminate Genevieve’s consulting agreement.”
Leah said:
“On what clause?”
“Fraud.”
“Has audit concluded fraud?”
“No.”
“Then no.”
“I’m chairman.”
“You’re conflicted.”
“I own forty percent.”
“And you recused.”
I hated her.
She continued:
“If Genevieve breached the sale agreement, counsel handles it. You do not use the acquisition to punish her for your daughter.”
“She admitted unauthorized use.”
“Then document. Investigate. Follow contract.”
I said:
“Fine. Suspend payment.”
“No.”
“Leah.”
“No.”
That word.
Again.
I ended call.
Ten minutes later I emailed:
Withdraw my instruction. I am recused from all Genevieve compensation decisions pending independent review.
Correct.
Still documented.
Genevieve obtained email in later litigation.
Of course.
Her lawyer argued:
Everett Sloan used corporate control to retaliate after a family altercation.
I had almost proven him right.
No payment had been stopped.
Independent committee later placed fees in escrow under contract while accounting issues were reviewed.
Not because I ordered.
Process.
That distinction protected both company and me.
Power becomes dangerous when every problem has a button you can press.
I had many buttons.
May you like
Learning not to press them was harder than people imagine.
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