The Wall Street Journal Interactive Edition -- March 15, 2000
Tech Center
IVillage, Former Executives Agree
To Settle Compensation Claims
By COLLEEN DEBAISE
Dow Jones Newswires
NEW YORK -- IVillage Inc. and three former executives issued a joint statement Wednesday
saying they agreed to settle employment-related claims brought against the Internet company and its
chief executive.
Terms weren't disclosed, although iVillage said the settlement is "not material" to the company.
The former executives had alleged iVillage lured them with promises of lucrative compensation
packages it had no intention of delivering.
Specifically, Joanne O'Rourke Hindman, iVillage's former chief
financial officer, Steven D. Carter, a former vice president, and Todd
Kenner, its former general counsel, said they left secure positions at
other companies after being aggressively recruited with stock-option
packages.
All three were fired after a short period on the job. According to their
suits, they never received any of the stock options.
Their stories had captured attention as epitomizing the possible pitfalls awaiting executives who
move from large-salary-based jobs to dot-com companies.
Ms. Hindman was a 12-year veteran of the Washington Post Co. who left iVillage after only four
months. Mr. Carter, a former vice president at General Electric Co.'s NBC unit, was fired from
iVillage after less than a year. Mr. Kenner, once a lawyer with Gaylord Broadcasting Co., was
dismissed after nine weeks.
IVillage continues to defend its recruiting practices, saying "promises are different from
expectations."
Jason Stell, an iVillage spokesman, said executives who leave posts with traditional firms for
new-economy jobs are in a different situation than they are accustomed to. "Sometimes they
prosper in this context. Sometimes they do not," he said.
The executives' suits had named iVillage Chief Executive Candice Carpenter and sought an
unspecified amount in damages.
Write to Colleen DeBaise at colleen.debaise@dowjones.com. |
