Republican gubernatorial candidate Meg Whitman was involved in a confrontation in 2007 with an employee who was preparing eBay's then-CEO for a media interview, a confrontation that cost the San Jose online auction site a six-figure settlement, according to published reports.
The employee, Young Mi Kim, returned to work at eBay four months after the incident and continues to work for the company as a senior manager for corporate and executive communications, according to the New York Times, which first reported the story Monday.
After both parties attended a supervised mediation process in San Francisco, they reached a settlement believed to be "around $200,000" according to the newspaper. Kim was not injured and the police were not involved.
"Yes, we had an unfortunate incident, but we resolved it in a way that speaks well for her and for eBay," Kim wrote to the Times in an e-mail Monday. "And ultimately, I came back to the company, which is not something I had to do."
On June 1, 2007, Kim was in an eBay conference room helping the CEO prepare for an interview with Reuters about Second Life, an online virtual world, the newspaper said. The story said Whitman grew frustrated because she wasn't adequately prepared for the interview.
Because there are believed to be no other witnesses to the eBay incident, according to the Times, the range of ensuing confrontation ranges from Whitman "physically guiding" Kim out of the room to Whitman using an expletive and shoving her.
Whitman's campaign spokeswoman declined Monday to address the specifics of the incident or any settlement of what they referred to as "a verbal dispute."
"Meg is a serious, results-focused boss," said spokeswoman Sarah Pompei. "A verbal dispute in a high-pressure working environment isn't out of the ordinary. Meg's record of accomplishment in business, including her success at leading eBay from a 30-employee startup to a Fortune 500 company, speaks for itself."
In a statement to the Times that Whitman signed, she wrote: "Young Mi and I had a professional disagreement, which we put behind us. She and I continued to work together at eBay, where I valued her skilled counsel and thorough professionalism."
Whitman, a billionaire who has never sought political office before and has a spotty voting record, is basing much of her campaign on her success as a business leader. In its listing last year of the top CEOs of the past decade, the Harvard Business Review ranked Whitman at No. 8 for her 1998-2008 tenure at eBay.
Whitman again used the fruits of her tenure to help her gubernatorial effort Monday, records show, giving her campaign $20 million more and increasing her total contributions to $91 million since she entered the race last year.
San Francisco Chronic June 23, 2010 09:04Thursday, June 24, 2010
(06-23) 21:04 PDT SAN FRANCISCO -- GOP gubernatorial candidate Meg Whitman has dismissed as "verbal" a 2007 altercation with an eBay employee that resulted in a $200,000 settlement, but attorneys who specialize in workplace issues said Wednesday that the sizable award tends to support news reports that the clash was more serious - and physical.
Whitman, the former eBay CEO, has faced a growing uproar since the
June 14 New York Times story by technology writer Brad Stone, who reported that in 2007 she "became angry and forcefully pushed" an employee, Young Mi Kim, who was preparing the CEO for an interview.
The Times story said the company, in a confidential settlement,
eventually paid "around $200,000" to Kim, who now is a communications executive for eBay.
"I don't think someone gets $200,000 when they're verbally pushed,"
said veteran attorney Barbara Lawless, a former president of the San Francisco Trial Lawyers Association who has specialized in workplace law for more than 30 years. "When I read about it, I just about fell out of my chair."
Stephen Murphy, who has litigated workplace issues for three
decades, said, "The only way I could see it making any sense is that if (Whitman) had made some comment about the employee's ethnic background, gender or sexual orientation - something protected by law."
"You can be the world's worst boss, but if you don't cross the line"
by violating civil rights or sexual harassment laws, employees' legal claims don't stand up, he said.
Los Angeles attorney Lisa Mackie, a longtime litigator in employees'
rights issues, agreed: "That's a big settlement if this were a verbal altercation. ... Based on practical experience and reality, I'd say there's more to the story that has not been told."
The story about Whitman, who will face Democrat and former Gov.
Jerry Brown in the November election, could affect a key theme of her campaign - that she was an exemplary executive with the qualities needed to handle the stressful job as governor of cash-strapped California.
Neither Whitman nor her campaign team have denied the Times report that the dispute was physical. The story was based on accounts of "multiple former eBay employees with knowledge of the incident" who were not identified.
In an interview Monday on Sacramento radio station KTKZ, Whitman appeared to be attempting to downplay the account when she dismissed the event as "a verbal dispute" and a "misunderstanding" - and said the matter has become a "fascination of the chattering class."
Tucker Bounds, spokesman for her campaign, said Wednesday that "Meg was answering a question during a radio interview and her account does not contradict or mean to contradict previous reports. It was a verbal dispute and we aren't denying that Meg guided Young Mi Kim from the room."
The Times reported that Whitman used an expletive and shoved Kim when she became angry. Whitman campaign insiders said the women worked together after the incident.
"We had an unfortunate incident, but we resolved it in a way that speaks well for her and for eBay," Kim said of Whitman in an e-mail to the Times. "Ultimately, I came back to the company, which is not something I had to do."
Still, some attorneys who specialize in workplace law say the settlement deserves closer examination.Murphy said it is a rare occurrence "for a CEO or a president of a company to engage in physical altercations with employees."Lawless said such events rarely become public."What happens a lot of time with executives or sales people that are
performing well is that the company doesn't want to do anything," she said, "because it would be more expensive to remove the person from their position."
E-mail Carla Marinucci at cmarinucci@sfchronicle.com.
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