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Former Safeco CEO Sued

Former Safeco CEO Mike McGavick has been hit with a lawsuit for allegedly accepting nearly $30 million in improper payments from Safeco Corp. after he...
August 15, 2006

Former Safeco CEO Mike McGavick has been hit with a lawsuit for allegedly accepting nearly $30 million in improper payments from Safeco Corp. after he resigned from the company. The suit was brought against McGavick by Emma Schwartzman, the great-great-granddaughter of one of the company's founders. Her great-great-grandfather, C.D. Stimson, co-founded General Insurance Co., which later became Safeco. Schwartzman, a shareholder in the company, also sued Safeco's directors and the insurer itself. In her complaint, Schwartzman said McGavick obtained the payouts, including bonuses and stock option packages, despite forfeiting his right to them under his employment contract.

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