Vin Gupta is out as CEO of the InfoGroup list-and-data conglomerate.
Gupta resigned from the position last Wednesday as part of a litigation settlement with shareholders. Gupta, who stepped down as InfoGroup’s chairman last month, still owns 40% of the company’s stock, and will remain with the firm as a director.
“After long deliberation I have decided that this change is in the best interest of the company,” Gupta said in a statement. “I look forward to continuing my service as a director of the company and to pursuing new business opportunities.”
The statement makes no mention to the litigation, but that is outlined in a document filed last week with the Securities and Exchange Commission.
It states: “On Aug. 20, 2008, the company’s board of directors entered into a settlement agreement with Mr. Gupta and the other parties to the derivative litigation. In connection with this settlement agreement, Mr. Gupta has resigned as the company’s chief executive officer effective Aug. 20, 2008, and has entered into a severance agreement with the company.”
The severance agreement, as outlined in a 10-Q filing, requires InfoGroup to pay Gupta $5 million within 60 days of the execution of the severance agreement and $5 million one business day following the Company’s 2009 annual meeting of shareholders.
Gupta agreed last month to pay back $9 million to InfoGroup over five years.
Bill Fairfield, who became InfoGroup’s chairman when Gupta agreed to resign from that position last month, has been appointed CEO. Bernard W. Reznicek, an InfoGroup director and the president and CEO of investment and real estate consulting firm Premier Enterprises, replaces Fairfield as InfoGroup’s chairman.
George F. Haddix and Vasant H. Raval have also agreed to resign from the InfoGroup board.
InfoGroup, the parent company of list firms including Millard Group, Direct Media, Edith Roman, and Walter Karl, went public in 1992. Gupta founded the company in 1972.