Former Micrel CEO Avoids $1.3 Million Defamation Clause Penalty

The California executive who led technology company Micrel Inc. before it was acquired by Microchip Technologies Inc. isn’t bound by a defamation clause requiring him to pay $1.3 million in case of violations, a state appellate court said Tuesday.

Raymond Zinn, former Micrel chief executive officer, signed a change-in-control agreement with the company that required it to pay him around $1.3 million if the company were acquired. A year later, Microchip acquired Micrel in a two-step merger, and Micrel Inc. became Micrel LLC. Before Micrel Inc. was extinguished, Zinn signed a severance agreement created by Microchip that included a defamation ...