A federal judge in Chicago this week granted the industrial supply company W.W. Grainger’s attempt to recoup more than $1.5 million in incentive compensation from a former executive who was convicted of possessing child pornography on his work-issued laptop.
U.S. District Judge Sara L. Ellis for the Northern District of Illinois granted a motion for summary judgment filed by plaintiff Grainger as to its request for recoupment against the company’s former vice president of total rewards, Scott Witz, for $1.38 million in equity-based awards and approximately $295,782 in cash incentive payments pursuant to Grainger’s management incentive program. The plan and award agreements provide for recoupment in the event an employee engages in misconduct, including criminal activity or violations of company policy, according to the May 13 opinion.
