HBO’s take on Albrecht settlement

The Times has published a number of pieces lately concerning whether a 1991 personnel dispute between two HBO employees was managed appropriately (“Time Warner chief takes heat,” May 19; “Exec faces fallout from HBO payout,” May 18).

As is often the case when personnel disputes arise between employees at a company and the facts aren’t clear, the human resources department implements a process to try to discern the facts and determine the right course of action. That’s what happened at HBO in 1991.

The head of our HR department brought in outside mediators (a man and a woman) to enable the two people to come to a fair resolution of their dispute; they were each advised by counsel. HBO agreed that, within reason, it would endorse any resolution they agreed to. It was clear to us at the time that it was certainly possible one or both of these executives would leave the company, and since both had long-term employment contracts, we might be obliged to pay compensation.

They came out of the mediation process with a resolution they proposed to our senior HR executive. She, in turn, recommended it to me, as chief operating officer, and to our chief executive at that time. We accepted their proposed resolution.

The agreement was made confidential at the request of both executives and their lawyers. I submit that our HR department handled this in an appropriate way that allowed both people to maintain their dignity and to pursue their careers.

JEFF BEWKES

President and

chief operating officer

Time Warner Inc.

New York