Falcone Exits Harbinger Group with $40M

Discussion in 'Wall St. News' started by dealmaker, Nov 25, 2014.

  1. dealmaker

    dealmaker

    Falcone Exits Harbinger Group With $40M
    Nov 25 2014 | 11:10am ET

    Phil Falcone has called it quits—the hedge fund billionaire is walking away from his Harbinger Group with a $40 million severance package.

    The Harbinger Group made the announcement Tuesday morning, saying Falcone will leave effective December 1. He will be replaced as board chair by board member Joseph Steinberg. Harbinger did not say who would replace Falcone as chief executive.

    “During Mr. Falcone’s tenure as chairman and chief executive officer, the company experienced significant growth and success, beginning as a company with approximately $140 million market capitalization in 2009 rising to today’s market capitalization of approximately $2.6 billion,” Steinberg said in a statement.

    “We thank Phil for his many years of hard work and leading HGI.”

    Falcone made his reputation shorting subprime mortgages in 2007 but his career since has been rocky. In August last year, the Securities and Exchange Commission leveled an $18 million fine and banned Falcone from managing outside money for five years after he and his firm were accused of granting Goldman Sachs preferential redemption treatment, market manipulation and of granting an improper loan to Falcone to cover his taxes.

    Falcone also saw LightSquared, an ambitious wireless internet venture majority owned by his hedge fund Harbinger Capital Partners, go south after a Federal Communications Commission ruling in 2012 said the network would interfere with GPS signals.

    LightSquared filed for bankruptcy, leading to an extended dispute between Falcone with Dish Network chairman Charlie Ergen over its ownership.

    Keith Hladek, an HGI director, will also resign from the board, according to the Harbinger statement. Falcone and Hladek are expected to “dedicate their efforts to HC2 Holdings and Harbinger Capital Partners.”

    Harbinger said it will pay Falcone a lump-sum payment of $20.5 million along with a $16.5 million bonus for 2014 and a pro-rata bonus of $3.3 million for 2015.
     
  2. Baron

    Baron ET Founder

    It sounds like to me he's had an amazing career with dramatic highs and gut wrenching lows. What a life to have lived! I doubt he's anywhere near done yet though.
     
  3. People find excitement where they can! Well pointed Baron. :)