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Former Charles Schwab Executive Sues Company For Over $736,000

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NEW YORK (Dow Jones)--Former Charles Schwab Corp. (NYSE: SCHW) executive Charles Goldman is suing the discount brokerage for just over $736,000 to recover severance pay and other benefits he says were withheld from him following his termination from the company in late 2008.

In a complaint filed last month with the U.S. District Court Northern District of California, Goldman alleges that Charles Schwab didn't pay him a severance package. Goldman says he was laid off on Nov. 17, 2008, due to "streamlining efforts on the part of the company," according to the complaint.

Goldman notified Charles Schwab that he accepted a position running Fidelity Investments' institutional business, which includes registered investment advisers, a week after he was let go from the company.

According to the complaint, Goldman says his eligibility for the severance payment was "conditioned upon his signing and returning the severance agreement," which he alleges he did on Dec. 4, 2008.

Goldman alleges that he was eligible to receive severance benefits of $633,333.33, lost COBRA insurance benefits of $23,745.40, a lump-sum termination benefit of $79,166.66 and "if he obtained other employment during the 60-day notice period, a lump sum payment of the base salary he would have received had he completed the full notice period," the document said.

A Charles Schwab spokesman said the company "has a policy of not commenting on issues related to former employees."

In January, Fidelity announced that Goldman would leave the firm in March to pursue opportunities outside the Boston-based mutual fund company.

News of the complaint was reported by Investment News earlier Wednesday.

-By Brett Philbin, Dow Jones Newswires; 212-416-2173; brett.philbin@dowjones.com

 

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