Harris North American boss out as Decima deal value is cut
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US-- David Vaden, Harris Interactive's president for North American and global operations is to leave the firm at the end of this week.
In a filing with the Securities and Exchange Commission yesterday, the firm said Vaden was leaving by agreement with the company, and will be entitled to severance. No reason was given for his departure.
The news came shortly after the firm revealed that it had cut back the amount it will pay for Decima – the Canadian firm whose acquisition Vaden oversaw in August 2007 – in an amendment to the purchase agreement.
The original agreement with Decima consisted of an upfront payment of C$22.4m plus earn outs targeted at a total of C$17m, based on Decima's performance to 2012. The earn outs have now been replaced by a payment of C$2m, to be made in five instalments between now and 2012. The amount could be further reduced if any of Decima's previous owners leave the company before the deal is complete.
Decima posted a 10% revenue decline in 2007-2008, suffering from an unfavourable exchange rate with the US and cutbacks in Canadian government survey spending. However, its revenue was up in the first quarter of the new financial year.
Vaden, who has been with Harris since 2000, was promoted to North American president in April 2007. He took on responsibilities that had been covered by various executives in the few years previously, freeing up other senior staff to focus on expansion in Europe.
His departure is the latest shake-up at the top for Harris, after disappointing results led to the departure of CEO Greg Novak in October 2008. He was replaced by TNS's former North American boss Kimberly Till, who in December reduced the firm's US headcount by 8% to cut costs.
Representatives of Harris Interactive were unavailable for comment today.
Author: Robert Bain
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