Savvis CEO McCormick quits after strip club scandal
24 November 2005 | 16572 views | 0
US telecoms firm Savvis Communications says it has accepted the resignation of its chief executive Robert McCormick, who is currently embroiled in a scandal relating to an un-paid American Express bill for $241,000 which he allegedly rung up at a New York strip club.
Savvis says the resignation followed an independent investigation into the matter, which - from a PR damage limitation perspective - was conveniently concluded just ahead of the Thanksgiving break in the US.
In a statement Savvis says it is in the best interest of the company to accept McCormick's resignation.
The company had suspended McCormick without pay in October after American Express filed a lawsuit against him and Savvis which claims that the $241,000 charge - which was billed to McCormick's corporate credit card two years ago - is still outstanding.
McCormick is thought to have rung up the charges during a single visit to New York's Scores nightclub while entertaining a group of business acquaintances.
Savvis has stressed throughout that McCormick did not submit the charges in question to the firm for reimbursement. Last week the company filed a motion with the New York Supreme Court to dismiss the complaint on grounds that the alleged charges were not business expenses.