First Advantage CEO gets $4.4 million good-bye deal
|March 5, 2007|
John Long has resigned as chief executive of First Advantage Corp., effective March 30.
Long, who will remain employed as a consultant to First Advantage for 18 months, will receive a cash severance payment of $4.4 million, according to a March 5 filing with the Securities and Exchange Commission.
Long will be succeeded as chief executive by Anand Nallathambi, who is currently president of First Advantage. Nallathambi, 45, joined First Advantage as president in September 2005, following the acquisition of the credit information group of The First American Corp. (NYSE: FAF - News). First Advantage is a majority-owned subsidiary of First American.
Long, also a veteran of First American, has been chief executive at First Advantage since June 2003, when the company was founded. Under his leadership, First Advantage has completed 49 acquisitions, Parker Kennedy, chairman of First Advantage and First American, said in the release.
Nallathambi would focus on organic growth and cross-sell strategies in all of First Advantage's business segments as well as increased operational efficiency throughout the organization, the release said.
Passion for building Long said in the release that he is leaving to "pursue my passion of building companies from the ground up."
The $4.4 million cash severance will be paid in two equal installments between April 2007 and March 2008, the SEC filing said. Long also will receive an acceleration of his unvested options and two restrictive stock awards, both effective March 30. An additional restrictive stock award and restricted stock units also will continue to vest. Long agreed not to compete against First Advantage for a period of 24 months, ended March 2, 2009, the filing said.
Long also is stepping down as a director of First Advantage. The board appointed Nallathambi to fill the vacancy on the board and he will stand for election along with other directors at the company's annual stockholders meeting.
The current management team, including John Lamson, executive vice president and chief financial officer, and Akshaya Mehta, executive vice president and chief operating officer, will remain in their positions, the release said.
Source: First Advantage