AmTrust reinstates Pipoly after replacing him as chief financial officer
New York-based property/casualty holding company AmTrust Financial Services has amended and restated the employment contract of Ronald Pipoly, its former chief financial officer (CFO) and current executive vice president – finance.
The company had announced on June 05 that it is replacing Pipoly with Adam Karkowsky as its CFO.
Pipoly had served as AmTrust's chief financial officer since 2005.
Pipoly's new contract with AmTrust will continue until June 4, 2019, at which time the amended agreement will continue to automatically renew for successive one-year periods, according to a statement.
Pipoly will serve as executive vice president – finance, and report to the chief financial officer and chief executive officer of the company.
AmTrust added that Pipoly’s annual base salary remains $700,000. He is eligible to receive bonus payments in the amount of (a) $500,000 upon the earlier to occur of June 30, 2017 or five days after the Company’s filing of its amended quarterly reports on Form 10-Q for the quarters ended June 30, 2016 and September 30, 2016, and (b) $500,000 within 30 calendar days of the Company’s filing of its quarterly reports on Form 10-Q for the quarters ended June 30, 2017 and September 30, 2017.
Pipoly is also eligible to receive other bonus payments in the discretion of the company’s board of directors.
Pipoly's replacement as CFO came after the insurer delayed its 2016 consolidated financial statements and said that the company's 2014 and 2015 financial reports would be restated.
Shareholder rights law firm Robbins Arroyo filed a class action complaint against AmTrust. In the filing, the law firm accuses AmTrust officials of falsely attesting to the accuracy of the financial statements, to the disclosure of any material changes to the company's internal controls over financial reporting, and to the disclosure of all fraud.
AmTrust should take a reserve charge “in the hundreds of millions of dollars” and commit to “much-improved disclosure” in order to restore investor confidence, analysts at Keefe, Bruyette & Woods suggested.
Meanwhile, AmTrust has completed a $300 million capital raise through a private placement to support its insurance units.
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