James R. Malone, who departed as chief executive of Douglas County printing giant Cenveo after only 54 days on the clock, will receive a $1.7 million severance, according to public documents reviewed by The Denver Post.
Malone, a Florida-based corporate restructuring specialist who landed the top job in June, was replaced Monday by investor Robert Burton of Greenwich, Conn.
Burton, who owns 11.2 percent of Cenveo through his Burton Capital Management, used a months-long proxy threat to negotiate an ouster of the board and to appoint himself CEO, a move that took effect at noon Monday.
Cenveo also agreed to pay Burton’s firm up to $800,000 for expenses incurred in the proxy fight.
Among the departing directors is former Denver Mayor Wellington Webb. Just one director, Jerome W. Pickholz, remains.
In June, Malone signed a three-year employment deal that included an annual base salary of $850,000, plus an annual bonus; a signing bonus equal to his prorated 2005 salary; 400,000 stock options, and a restricted stock award of 275,000 shares.
Malone drew $31,481.48 for each day at Cenveo. Based on a 12-hour workday, he earned hourly pay of $2,623.46; based on eight-hour days, he earned $3,935.19 an hour.
When Cenveo appointed Malone, founder of Qorval LLC, a Naples, Fla., firm that takes over financially distressed companies, Burton derided the move.
Burton criticized Cenveo for committing to pay Malone’s compensation and potential severance while the company was considering offering itself for sale. He also questioned Malone’s experience in the printing industry.
Malone and Burton could not be reached for comment Monday.
Staff writer Will Shanley can be reached at 303-820-1260 or wshanley@denverpost.com.
