Industry News

Cendant settles lawsuit over CEO pay

Litigation forces proposed changes in compensation

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Cendant Corp. today announced a tentative settlement agreement in a shareholder dispute of the compensation package of Henry R. Silverman, Cendant CEO, president and chairman of the board.   Cendant is the parent company of the Century 21, Coldwell Banker and ERA franchise corporations and NRT, Inc., the largest real estate brokerage company in the nation, among other operations. NRT alone has 52,000 sales associates and 7,000 employees.   The settlement, which Cendant Corp. has agreed to "in principle," relates to a shareholder derivative lawsuit that alleged that Cendant's directors violated their fiduciary duties in approving an amended employment agreement with Silverman.   Silverman had a base salary of $3.35 million and received a bonus of about $13.8 million in 2003. He also has about 41.6 million beneficially owned shares of stock and unexercised stock options worth about $287 million, according to a Cendant SEC filing.   Compensation of senior executives h...