Chairman’s Resignation Pact to Reduce US Facilities Earnings
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US Facilities Corp., a Costa Mesa insurance company, said Monday that an agreement reached with George Kadonada for his resignation as chairman and chief executive will reduce the company’s earnings by $500,000, or 9 cents a share, for the first quarter.
Terms of the agreement with Kadonada, 52, who will resign effective next Monday, were not disclosed. David L. Cargile, 49, US Facilities’ president and chief operating officer, will assume Kadonada’s duties as chief executive.
The company, which previously revealed that it was working on a severance package for Kadonada, said it will nominate a candidate at the annual shareholders meeting this spring to replace Kadonada on the nine-member board of directors.
Fidelity National Financial Inc., an Irvine title insurance company that is making a hostile bid for US Facilities, has said that it hopes Kadonada’s departure will ease the process. Kadonada had been a staunch opponent of the takeover attempt.
Stock in US Facilities fell 25 cents a share Monday to close at $13.50 in Nasdaq trading.
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