You know that expression, “Any publicity is good publicity”? Do you think Parker Conrad, the ousted Zenefits CEO, may feel that euphemism should die a speedy death for his sake?
Just a few days ago, Bloomberg Businessweek posted a feature of the rise and fall of Zenefits, pulling zero punches as it criticized Conrad’s management decisions, both ethically and logistically speaking. Now, Buzzfeed News is reporting that the former CEO has added yet another indiscretion to his already scandalized name.
According to Buzzfeed — the same outlet that first reported Zenefits was allowing employees to cheat the California insurance broker licensing test, a macro that Conrad himself created — Conrad sold $10 million worth of stock months before his exit at Zenefits and the exposure of serious compliance issues. He also negotiated a $130,000 payment as part of his resignation agreement.
Despite his exit being almost demanded according to Bloomberg, Conrad held three of Zenefits’ four board seats, giving him more than an upper hand when it came to his resignation. Buzzfeed says that’s how he was able to maneuver a deal that entitled him to a $130,000 severance payment and allowed him to keep his shares and unvested stock (which was to vest in six months).
And now, it’s being reported that Conrad has hired John Keker, a well-known trial lawyer. Keker made a name for himself defending Frank Quattrone, a tech investment banker, when Quattrone was accused of not managing IPOs correctly back in the early 2000s, according to Business Insider.
This new information dredges up more questions about Conrad’s less-than-transparent dealings: Was he lining his pockets anticipating a devaluation and investor pullout, or was he just preparing for his inevitable firing? Is his lawyering up a move to sue his brainchild, or, more likely, is it in anticipation of further legal action against him?
This news also inhibits Zenefits from moving on from its troubled past to be, what seems at least, a more compliant and professional future under current CEO David Sacks. Maybe even one with fewer stairwell condoms — a staple of the Conrad era, where “frat culture” reigned supreme.
Either way, it doesn’t seem like Zenefits will shake Conrad anytime soon, whether that be because of pending litigation or because the company still has a lot of cleaning up to do.
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