An NASDR arbitration panel has ruled against Franklin Templeton of San Mateo, Calif. in a case filed by Daniel Calabria, a former fund executive.
The settlement rendered by the panel orders Franklin Templeton to pay $458,208 in back compensation to Calabria, in addition to retroactive interest dating back to1992 and some related administrative fees, according to the NASDR. The case stems from a $1.7 million severance package Calabria negotiated in 1993 following Templeton's merger with Franklin Resources. Calabria, the former president of Templeton Funds Management, requested a NASDR arbitration hearing May 1999, claiming Franklin misrepresented and concealed information regarding an additional $805,000 in benefits it owed him under a 1988 employee restricted stock plan. Last June, Franklin filed a counter suit against Calabria, alleging he had breached his severance agreement by requesting an NASDR arbitration panel for the case. Franklin claimed that Calabria severance agreement precluded him from making any claims against the firm. Representatives from Franklin declined comment.