Harbinger Group Surges On Philip Falcone's Departure

Harbinger Group Inc HRG shares surged Tuesday amid news that its embattled Chairman and CEO, Philip Falcone, has resigned.

“Falcone, 52, founder of hedge fund firm Harbinger Capital Partners LLC, last year admitted wrongdoing to settle a probe by U.S. regulators of improperly borrowing money from his fund to pay his personal taxes and giving preferential treatment to some of his investors. He was barred from the industry for at least five years and was allowed to continue running Harbinger Group, which owns stakes in companies from life insurance to pet supplies,” according to Bloomberg.

The company’s press release stated that Falcone will receive “a lump sum payment consisting of $20,500,000 one-time payment, $16,500,000 in respect of Mr. Falcone's previously earned and awarded annual bonus for fiscal year 2014 and $3,300,000 as a pro-rata bonus for fiscal year 2015.  In addition, the warrants to acquire common stock of HGI that were previously awarded to Mr. Falcone will continue to vest in accordance with their existing vesting schedule.”

Harbinger Group recently traded at $13.06, up 1.2 percent.