Former Ihop Exec Sues for Severance

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Ihop Corp.’s former chief operating officer filed a lawsuit against the company claiming he was terminated in January without a severance package after refusing to take a demotion.


Dennis Farrow joined the Glendale-based causal dining chain in September 2006 from Wendy’s International Inc.


According to the suit, which was filed in Los Angeles Superior Court May 28, Ihop Chief Executive Julia Stewart and other executives told Farrow he was being groomed to become president, but Stewart ultimately changed her mind late last year and eliminated his position.


Farrow is seeking to recover eight months worth of pay from his initial two-year agreement plus bonuses, benefits and legal costs. He was paid $375,000 per year and qualified for as much as a 50 percent bonus, according to the compliant.


Earlier this week, Ihop said it is changing its name to DineEquity Inc. and will be traded under the ticker symbol “DIN” on the New York Stock Exchange starting Monday. Ihop restaurants, as well as Applebee’s restaurants, will continue to operate under their respective names.


Shares in Ihop closed down 1.7 percent to $46.89 Friday.

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