In Byerlotzer v. Key Energy Services, the plaintiff, who was the company’s prior CEO, alleged that the defendant’s actions caused him to incur a significant loss in compensation. The alleged damages to his compensation included lost company performance based bonuses and devalued executive stock options.
The plaintiff contends that he was forced to exercise his stock option at a less than optimal time due to the defendant’s actions. The plaintiff and defendant disagreed on the extent to which certain performance goals were met. In the project we analyzed the company’s past financial performance, the performance goals at issue and made projections of the potential lost executive compensation.
We also performed valuations of the plaintiff’s different tranches of stock option grants using standard stock option pricing models. Dr. Dwight Steward testified at deposition regarding the plaintiffs’ allegations and economic damages. The case settled before trial.