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QUESTROM v. FEDERATED DEPT. STORES, INC.

No. 98 Civ. 0659(LAK).

41 F.Supp.2d 294 (1999)

Allen QUESTROM, Plaintiff, v. FEDERATED DEPARTMENT STORES, INC., Defendant.

United States District Court, S.D. New York.

February 25, 1999.

Attorney(s) appearing for the Case

Richard L. Fenton, Andrea L. Zopp, Helen B. Kim, Sonnenschein Nath & Rosenthal, for plaintiff.

John M. Newman, Jr., Robert W. Gaffey, Mark Herrmann, Christopher Fisher, Jones, Day, Reavis & Pogue, for defendant.

OPINION

KAPLAN, District Judge.

In 1990, Allen Questrom was hired as chief executive officer of Federated Department Stores, Inc. ("Federated") and given the task of leading the company out of bankruptcy. As a spur to his efforts, Questrom's employment contract provided that he would receive, inter alia, incentive compensation calculated as a fixed percentage of the increase in Federated's equity value from 1990 until 1995. The contract provided also...

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