Investigation Overview
An investigation on behalf of current long term investors in shares of Navigant Consulting, Inc. (NYSE:NCI) concerning possible breaches of fiduciary duties related to potential excessive compensation that was awarded to certain senior officers and executives at Navigant Consulting was announced.
The investigation by a law firm focuses on whether the directors and officers of Navigant Consulting, Inc. harmed the company by breaching their fiduciary duties to shareholders. In particular the investigation on behalf of current long term investors in Navigant Consulting, Inc. (NYSE:NCI) focuses on possible shareholder claims that certain of Navigant Consultings senior officers and executive were unjustly enriched through their receipt of unwarranted, excessive or unearned compensation in past years.
Navigant Consultings CEO earned a total of $1.88million in 2010 including a $275,000 cash bonus. Its Executive Vice President and CFOs pay rose from $661,000 in 2008 to $908,000 in 2010.
However, Navigant Consultings shareholders recently expressed their disdain for executive pay packages by voting no on Navigant Consulting's say on pay provision. Navigant Consulting, Inc received only 44.8% support for its pay practices at its April 25 annual meeting, according to a company filing.
Additionally the investigation concerns possible claims that the prior compensation awarded at Navigant Consulting is improper based upon its current operating condition.
Navigant Consultings 12months Total Revenue fell from $767.06million in 2007, respectively $810.64imllion in 2008 to $703.66million in 2010. Its Net Income decreased over the same time frame from $33.40million in 07, respectively $40.06million in 08 to $24.06million in 2010.
Shares of Navigant Consulting, Inc. (NYSE:NCI) fell from as high as $21.70 in May 2008 to recently $9.31 per share.
The investigation seeks to determine whether certain senior officers and executives at Navigant Consulting, Inc. were awarded salaries, bonuses, stock options and other forms of long-term, incentive or retirement compensation that were excessive or unwarranted based on the Navigant Consultings performance as compared to what senior officers and executives at comparable companies were making and/or results that were fraudulent, misleading or not long-lasting.
Finally the investigation focuses also on possible shareholder claims that would allow Navigant Consulting (NCI) stockholders to more efficiently influence or control future compensation decisions at Navigant Consulting Inc.