Systemax exec resigns, must hand over $11 million
Company, which sells tech online via TigerDirect, CompUSA, and Circuit City sites, announces the resignation of Gilbert Fiorentino, CEO of its technology products group.
Gilbert Fiorentino, head of Systemax's technology products group, has resigned in the face of undisclosed allegations, the company announced today.
Systemax, which sells computers and electronics online via the TigerDirect, CompUSA, and Circuit City sites, put Fiorentino on administrative leave last month. At the time, the company said that it was determining whether to terminate Fiorentino after completing an investigation into "anonymous whistleblower allegations" related to the company's Miami operations. The company's audit committee, which handles the financial side of the operation, conducted the investigation, according to a 10-K reported filed with the Securities and Exchange Commission in March.
Systemax has not divulged the exact nature of the allegations or whether its investigation turned up anything.
The company declined CNET's request for comment.
In addition to tendering his resignation, the company said, Fiorentino agreed to surrender $11 million in assets to Systemax within five days, including over 1.1 million shares and $480,000 in cash. He is also forced to "disclose his and his immediately family's personal assets; forfeit undisclosed assets discovered by the company; disclose information regarding certain matters that led to his being notified of the company's intent to terminate him; and to full cooperate with the company in the future," Systemax said.
Both parties have also signed non-disparagement agreements, and Fiorentino will not be allowed to compete against Systemax for five years.
Fiorentino's departure spells an end of an era for Systemax. Under his leadership, the company. It did the same with the Circuit City brand in 2009.
With Fiorentino out, Robert Leeds, Systemax's founding CEO of the technology division, will head up the technology products group. Systemax is planning to launch a nationwide search for a permanent replacement.
Port Washington, N.Y.-based Systemax shares are up 27 cents to $12.70 following today's announcement.