THE COLONY, Texas — Shawn M. Preator, chief financial officer at 400-unit Pizza Inn, resigned on Dec. 28. According to a regulatory filing, his contract was set to expire on Dec. 31. (Read also Embattled Pizza Inn execs get contract extensions.)
Preator was one of four Pizza Inn executives accused by the chain's shareholders of changing company bylaws to enable them to write egregious labor contracts for themselves in 2002. (Read also Greed between the lines.) Those contracts included huge payouts should the chain undergo a change of control. According to his contract, Preator would have received $597,000.
Only one of those four executives, Ward Olgreen, vice president of franchise operations and concept development, remains with the company.
Ronald Parker, former chief executive and president, was fired in December 2004 and later sued by the company for his work with its former outside law firm to write the questionable contracts. (Read also Pizza Inn fights back and Will Parker's departure from Pizza Inn end an era of greed?) Former vice president Keith Clark resigned in June 2004.
Parker and Clark sued Pizza Inn for the change of control payouts in their contracts: Parker, $5.4 million; and Clark, $760,000.
Clark received a $150,000 settlement from the chain in November, while Parker's suit remains in arbitration.