20.08.2005

John Milne Fired

United Rentals has terminated its president and Chief Financial Officer, John Milne ,“with cause”, following the expiry of a 30 day warning after he refused to answer questions regarding accounting practices in prior years.
See United threatens to fire its president, July 15th

The termination which was filed with the Securities and Exchange Commission on August 16th. The filings says that:- “The company determined on August 15th, that Mr. Milne at conducted himself in a manner which adversely affects or could adversely affect the company”. Dismissing him under such terms, leaves Milne without severance pay or compensation, He will be entitled to any vacation pay and a bonus due for 2004, which could exceed $800,000.

The board of United has also exercised its right under its employment contract with Milne, to cancel all of Milne’s stock options and forcibly repurchase the half a million shares and a further 700,000 warrants that he owns for a total price of less than half their current market value, He will receive seven million dollars for stock and warrants worth well over $15 million.

The filing said “The board took this action because, as previously announced, Mr. Milne has been unwilling to respond to questions of the special committee of the board reviewing matters relating to the previously disclosed SEC inquiry of the company. The company has commenced a search for a new CFO”.
“The board has also requested that Mr. Milne resign as a director of the company”.