Chapter 11 - THE BENEFITS DOCUMENTSMichael accused me of abusing my position at Carter Home Systems.
That required investigation too.
The company had eighty-three employees.
Not huge.
Large enough to have rules.
I was chief financial officer.
My executive compensation included a flexible benefits allowance.
Three years earlier I signed a written election directing part of it to Sarah’s supplemental medical reimbursement.
The agreement said:
Employee may modify or terminate voluntary election subject to plan-administration deadlines and applicable claims already incurred.
Exactly what I did.
I did not terminate Sarah’s earned retiree benefit.
I did not interfere with already authorized medical claims.
I ended future voluntary payments from my compensation.
The board’s compensation committee reviewed the call after Michael complained.
Conclusion:
Permitted.
Personal motivation did not transform an authorized personal election into misuse of company assets.
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They did, however, recommend that family-member reimbursements never again be administered informally.
Fair.
