Welcome

Domo Inc. Board Sued Over Founder Stock Grants Worth $19 Million

Aug. 6, 2021, 5:51 PM

A Domo Inc. investor sued its founder in Delaware, claiming he used his 80% voting power and control over the business intelligence company’s board to push through “excessive and unjustified” equity awards for himself worth nearly $19 million, well more than comparable businesses pay their chief executives.

In addition to CEO-chairman Joshua G. James, the derivative lawsuit—made public Friday in Delaware Chancery Court—targets the rest of Domo’s board, including members of the company’s compensation committee.

It accuses them of “rubberstamping” stock grants worth $11.4 million and $7.5 million after ignoring an analysis of “peer” companies, all while telling investors the ...

To read the full article log in.

Learn more about a Bloomberg Law subscription.