Priceline's Ex-CFO $3 Million Loan Excused

Many are aware of the fact that Priceline has had its share of problems, but the latest news from the Norwalk, CT-online retailer is stunning. The company is forgiving a $3 million loan given to ex-CFO Heidi Miller.

The loan was given a 6.8 percent APR, and the fact that the company won't pursue repayment from Miller is circumspect to her departure. Analysts are quick to comment that a financially stressed company like Priceline normally wouldn't take an action like this, especially since her contract did not require forgiving the loan should she depart.

In a statement, the company says that it has forgiven the loan based on an employment agreement, and could only have done so if there were a change of "control, death, disability, the end of its five-year term, dismissal for other than cause or her departure for a narrowly defined good reason."

The good reasons are defined as "a material reduction of her duties, assignment of responsibilities inconsistent with her position, her removal from an officer’s position or from Priceline’s board, relocation of Priceline’s Connecticut executive offices more than 35 miles away, and exclusion from bonus plans."

Still, it isn't clear that any of the "good reasons" occurred, and certainly none of the other changes outlined happened.

You may like these other stories...

School tax breaks get House support as Democrats objectRichard Rubin of Bloomberg reported that the House of Representatives on Thursday voted to expand and simplify tax breaks for education as Republicans continue to pass...
The Financial Accounting Standards Board (FASB) has relaunched its technical agenda web page, which Chairman Russell Golden said will inform visitors at a glance on where any given FASB project stands, the steps it took to...
Tax accounting to be simplified for money-market fundsThe US Securities and Exchange Commission (SEC) voted 3-2 on Wednesday for sweeping changes to institutional money-market funds, Emily Chasan, senior editor of...

Upcoming CPE Webinars

Jul 31
In this session Excel expert David Ringstrom helps beginners get up to speed in Microsoft Excel. However, even experienced Excel users will learn some new tricks, particularly when David discusses under-utilized aspects of Excel.
Aug 5
This webcast will focus on accounting and disclosure policies for various types of consolidations and business combinations.
Aug 20
In this session we'll review best practices for how to generate interest in your firm’s services.