Mark Watson, the former Chief Executive of specialty reinsurer Argo, is set to receive a $2.5 million compensation package upon his departure from the company.
Watson’s ‘retirement’ from Argo followed news that the re/insurer had been subpoenaed by The US Securities and Exchange Commission over compensation practices for its executives.
Before that, Argo had been locked in an ongoing, messy back-and-forth with Voce, over issues including executive compensation practices and the independence of its board of directors.
Now, it has also been confirmed that Watson, alongside his $2.5 million payout, must forfeit 73,481 shares in the company (an amount equivalent to $4.6 million).
35,296 (or, $2.2 million) of these shares will be used to reimburse Argo for certain alleged personal expenses, in an amount to be determined after the company concludes its investigation into such expenses.
If the amount Watson must reimburse is less than the above amount, he will be given back the appropriate amount of shares, and vice versa.