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Red Hat CFO 'Dismissed' From Company, Forfeits $4M Retention Award

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"Red Hat Inc.'s finance chief Eric Shander has been dismissed from the company, forfeiting a $4 million retention award that was agreed to ahead of Red Hat's acquisition by IBM," reports the Wall Street Journal: The Raleigh, N.C.-based software company confirmed late Thursday that Mr. Shander was no longer working at Red Hat. "Eric was dismissed without pay in connection with Red Hat's workplace standards," a company spokeswoman said in a statement. The company, which said that its accounting and control functions remain healthy, on Friday declined to provide specifics about what led to Mr. Shander's dismissal. Mr. Shander didn't immediately respond to a request for comment. Mr. Shander was named Red Hat's permanent chief financial officer in April 2017 after a stint as acting CFO, according to the spokeswoman. He had served in various finance roles at IBM and Lenovo Group Ltd. before joining Red Hat in 2015... His departure puts Red Hat in a difficult spot, said Ivan Feinseth, director of research at Tigress Financial Partners LLC, an investment banking firm. "The fallout for companies in these situations is not only the dismissal of an executive but also the litigation risk," Mr. Feinseth said. "Companies could be held responsible for not creating and maintaining a proper workplace environment." IBM said it supports Red Hat's decision to dismiss Mr. Shander. "Our values are fully aligned in this area," a spokesman said.

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