Systemax Head Resigns, Owes $11 Million

Paul Lilly

After being placed on administrative leave on April 18, 2011, Systemax today said it has accepted the resignation of Gilbert Fiorentino as Chief Executive of the company's technology products group. Fiorentino was under investigation for "anonymous whistleblower allegations" in relation to the company's Miami operations, though Systemax, which sells computer parts and other electronics through its TigerDirect, CompUSA, and Circuit City subsidiaries, never said exactly what those allegations were.

"The matters investigated occurred over a number of years, did not have a material impact on Systemax's previously reported financial results in any reporting period, and were limited to the company's Miami operations," Systemax said in a statement.

Systemax said it came to an agreement with Fiorentino whereby within 5 business days, the former Chief Executive will surrender assets worth around $11 million, including 1,130,001 shares of Systemax common stock owned or beneficially owned by Fiorentino, and $480,000 in cash. According to Forbes , Fiorentino received a little under $3.1 million in compensation in 2009, including $501,000 in salary.

Robert Leeds, founding CEO of Systemax's technology business, is taking over as Interim Chief Executive while a search for a permanent replacement is under way.

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