Shareholder sues Furniture Brands over executive pay
Heath E. Combs -- Furniture Today, July 13, 2009
ST. LOUIS — A Furniture Brands International shareholder is suing company executives for allegedly breaching fiduciary duties in the past two-and-a-half years.
The suit covers current and former board members and executives and was filed by F. Charlene Henderson on behalf of the company. She has been a shareholder since 1998, according to documents filed in U.S. District Court here.
The suit alleges that FBI executives unjustly benefited from false and misleading information in public statements and disclosures and have wasted corporate assets.
Henderson's suit said compensation decisions at FBI have been divorced from company performance. It seeks greater oversight of the company's corporate governance and board policies and restitution of compensation from executives back to FBI.
Court documents said the company approved a long-term compensation plan in December to pay executives $18 million over the next two to five years, even as earnings dwindled.
Furniture Brands has filed for dismissal of the suit, saying the board does not lack independence and that it does not prove failure to monitor operations on FBI's behalf.
FBI officials declined to comment on the pending suit.
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Shareholder sues FBI over executive pay
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