Hawaii biotechnology company Cyanotech Corp. has settled a dispute with its former CEO after halting severance compensation to the executive last year.
Cyanotech, which makes nutrition and health products from microalgae on Hawaii island, disclosed in a regulatory report filed last week with the U.S. Securities and Exchange Commission that it reached a settlement agreement with Brent Bailey, who resigned in March 2016.
As part of the settlement, Cyanotech agreed to pay Bailey $100,000 on or before Friday, and then another $225,000 over the next year.
When Bailey resigned, he was to receive $325,000 over one year, health care premium contributions for 18 months and up to 155,000 shares of Cyanotech stock. Bailey collected $176,000 and received 48,467 shares of stock until November when the company said it had ceased further severance payments after alleging that Bailey breached employment and separation agreements.
The settlement calls for Bailey to receive $325,000 on top of what he received previously but no stock or health care benefits.
Bailey also agreed to keep all nonpublic Cyanotech information, including trade secrets, confidential for three years, and the company and Bailey are prohibited from disparaging each other for 12 months.
ON THE MOVE
Carlsmith Ball LLP has announced that Kai Wang has rejoined the firm and will serve as a partner at their Honolulu office. She will focus on land use, real estate and hospitality and cross border investments. Wang was previously a vice president, legal, Greater China, for Starwood Hotels & Resorts for nearly three years.
