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Web Host Savvis CEO Resigns.
2005-11-24, HostMan.biz Managed hosting provider SAVVIS (savvis.com) said late on Wednesday that it had accepted the resignation of embattled CEO Robert McCormick. Chief operating officer Jack Finlayson, acting CEO since McCormick went on leave several weeks ago, will continue in that role. McCormick was placed on unpaid leave earlier this month shortly after American Express filed suit against SAVVIS in an attempt to recoup payment for a $241,000 bill McCormick allegedly ran up at popular New York adult entertainment bar Scores. The bill was charged to McCormick's corporate American Express card and went unpaid for two years. McCormick, who was reportedly entertaining a small group of guests, refuses to pay the bill, alleging that the majority of the charges were fraudulent. He says only $20,000 of charges was authorized. Neither SAVVIS nor McCormick has paid American Express. Scores has already been compensated for the full amount after reportedly providing American Express with evidence that the full $241,000 in charges was legitimate. Last week, SAVVIS filed to have the charges dismissed because the charges were not business expenses. The company says McCormick, who never submitted the charges for reimbursement, is responsible for paying the full amount. The company says it has completed an internal probe into the matter, which re-confirmed that McCormick did not submit the expenses for reimbursement and that SAVVIS did not make any payments to American Express. |
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