January 6, 2005 Safeco and McGavick enter into 2005 Employment Contract.
Provides that voluntary resignation would result in forfeiture of bonuses and stock options, and all 2005 options will have 2008 vesting date.
July 18, 2005 McGavick announces plans to resign from Safeco to run for U.S. Senate.
August 31, 2005 Safeco announces McGavick will remain at Safeco.
McGavick to remain CEO until a successor in place and to remain Chairman until at least December 31, 2006.
December 1, 2005 McGavick gives formal notice of resignation, effective December 31, 2005.
Notice triggers 30 day period under which McGavick is required to remain as CEO at existing pay level,according to 2005 Employment Contract.
December 6, 2005 Safeco and McGavick enter into Executive Transition Services Agreement.
Agreement awards McGavick multimillion dollar compensation package for two-months of part time work. Compensation includes $2.3 m. bonus, $3.3 m. stock options, and the right to be called an “employee” through February 2006.
December 31, 2005 McGavick steps down as CEO and Chairman of Board.
January 1, 2006 –
February 28, 2006
McGavick retains status as “employee.”
McGavick’s employee” status requires Safeco to make him multi-million dollar stock award.
January and
February, 2006
McGavick is a full-time Senate candidate.
McGavick takes 18-community campaign kick-off tour in January, and travels and fundraises across the State throughout February. He comments on his relief to finally be a “full time” Senate candidate.
February 28, 2006 McGavick’s “employee” status at Safeco ends.
March 24, 2006 Safeco distributes 2005 Proxy Statement to shareholders.
Statement conceals the value and extraordinary nature of McGavick compensation.
June 13, 2006 McGavick reports his 2006 Safeco income as $15 million.
McGavick files official financial report to United States Senate.
June 16, 2006 McGavick restates his 2006 Safeco income as $28.4 million.
Files amended report to the United States Senate.
August 1, 2006
Schwartzman v. McGavick filed in U.S. District Court for theestern District of Washington.