Celsius Won’t Rehire The CFO As An Advisor For $93K Per Month
Through its bankruptcy proceedings, Celsius had intended to rehire former chief financial officer Rod Bolger as an advisor.
Just before a hearing on the subject was to be held, Celsius changed its mind on keeping its former chief financial officer on as an advisor.
In a Friday filing, the bitcoin lender retracted its earlier move, which had asked for the ability to retain banking industry veteran Rod Bolger throughout its bankruptcy proceedings. Celsius didn’t explain why it had changed its mind.
A court hearing for Celsius’s original July 25 request for Bolger’s advice is scheduled for today (Monday). If the motion had passed, Celsius would have paid Bolger 120,000 Canadian dollars ($92,800) (prorated for partial months) every month as an advisor.
According to court records, the company gave Bolger a base salary of $750,000 per year, a performance-based cash incentive of up to 75%, and with stock and token options. Bolger only worked at Celsius for five months in total after being initially employed in February. He was once the Royal Bank of Canada’s chief financial officer.
About three weeks after the platform’s network withdrawals were frozen, Bolger announced his resignation on June 30. However, because he had to give eight weeks’ notice before quitting voluntarily, he is still considered an employee of Celsius and will continue to be paid a base salary through the end of August.
Potential advisor Before the collapse, Bolger praised Celsius liquidity
The lender’s decision to withdraw the petition comes in response to investor Keith Suckno’s official protest. Suckno said in a filing dated August 2 that Celsius neglected to clarify the need for Bolger’s services and called attention to the suspected dissemination of “false information” days before the withdrawal freeze.
He pointed to a company blog post published on June 8, in which the former executive overstated the firm’s financial position.
In that post, Bolger said he was happy about Celsius:
“strong liquidity framework, established practices around liquidity data” and that the firm was “in a strong position to weather the recent market turbulence.”
Suckno objected to Bolger’s appointment as an advisor, saying he was either not well informed or intentionally misled investors.
After Bolger’s resignation, Celsius promoted head of investor relations Chris Ferraro to chief financial officer. The lender filed for bankruptcy just two days later. Its native token CEL has lost two-thirds of its value so far this year, but its price has more than doubled in the past month.
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