Tech firm ordered to pay ex-director €105k

A US cyber security firm has been ordered to pay a former senior director of its Cork operations €105,000 for his unfair dismissal.

In the case, the Californian headquartered AlienVault admitted to the unfair dismissal of Emmet Florish from its Cork branch in June 2015.

Mr Florish was seeking reinstatement as he believed the stock options he was awarded to be of a high value should the company announce an initial public offering.

The firm was opposing his reinstatement and the Employment Appeals Tribunal (EAT) has determined that compensation is the best form of remedy and has awarded Mr Florish €105,000.

Mr Florish started work on a salary of €75,000 for his role as director of inside sales in the European Middle East and African regions. He had primary responsibility for setting up the Cork office which continued to grow throughout his employment. In July 2014, in an IDA jobs announcement, AlienVault confirmed the creation of 40 jobs at its new sales and tech support centre in Cork.

Mr Florish was promoted to the role of senior director in early 2015 as a result of his “exceptional performance”. His salary was increased to €96,250.

In early May 2015, Mr Florish was granted an additional 2,000 stock options, with a vesting schedule for the stock options over a 48 month period.

A portion of the shares vested at of the end of each month, with the first month of vesting starting in January 2015. However, less than a month later, Mr Florish was dismissed. AlienVault conceded the dismissal was unfair but no details were provided in the EAT report on the circumstances.

The case before the tribunal was to ascertain the appropriate remedy in circumstances where the claim for unfair dismissal was conceded by the company.

The EAT found that Mr Florish had “found new employment three months after his dismissal carrying a slightly greater salary than he had with the respondent and with similar commission structure”.

It also found that the stock options did not form part of Mr Florish’s pay. The EAT noted that Mr Florish had exercised his vested stock options by the date of his dismissal, in June 2015.

The tribunal also found that the unvested stock options at the time of the dismissal should not and do not form part of the assessment of loss in the case.

Taking into account the loss of pay and commissions, the tribunal awarded him €105,000.

The award includes a sum for the loss to the date of the hearing and a sum for future loss linked to the commission.