Thread regarding ITT Educational Services Inc. layoffs

You're a sorry excuse for an "executive", and I think it would be just wonderful if you got to start over in life with nothing!

Its more than twice, its like 5 times as much as community colleges and with a toxic blend of loans that nobody is going to be able to repay. 90% of the reason ITT has such high default numbers is their own greed and indiscriminate frontloading of as much debt as they can get away with, regardless of how hard and unlikely that debt is to be ever repaid. When I graduated I had demands for $1200 a month from just one of a dozen loans they took out. Like most, I defaulted because there is no way to do IBR or anything else because of their predatory methods.

A friend of mine was laid off at the end of the last quarter as department chair at ITT -Tech, because the enrollment at the campus has dropped so much it is now falling (failing?) under ITT's "small campus model". This friend had been a staunch defender of ITT -Tech in general. But not so much any more, because he thinks that the students deserve at least a few full time faculty at the campus, and also because the "severance" package he got is a joke. What an irony, when compared to the CEO's lack of understanding of student needs and generous compensation and severance package. The only full time academic employee at that campus is now the Dean, and she is backed up by 50 adjunct faculty working without job security or benefits. The Dean at her little desk is are outnumbered 20 to 1 by full-time sales people and financial aid coordinators in the huge administration office at this campus. So not only is the CEO a poor example of integrity, he has not an iota of understanding of higher education. He claims his business is set up for serving non-traditional students, yet he is unwilling to pay anyone as counselors or advisers or department chairs to provide services for those high needs students. The adjunct faculty are underpaid as well. He takes advantage of desperate people by charging twice the price of community colleges and providing half as much -- apparently that kind of nerve makes him valuable to stock holders. Yechhh.

Wonder how many government agencies are monitoring the guy 24/7 right now?

He will end up in jail

The guy is a troglodyte.. I would almost rather he stays and gets nailed to the wall with the rest.

In connection with Mr. Modany's rescission of his resignation notice, the Board of Directors of the Company determined that it was in the best interests of the Company and its shareholders to retain Mr. Modany as the Company's Chief Executive Officer. On December 31, 2015, the Company and Mr. Modany entered into a new letter agreement (the "New Letter Agreement") that terminates the 2014 Letter Agreement in its entirety, including the consulting arrangement provisions. The New Letter Agreement provides that Mr. Modany will continue to be employed by the Company as its Chief Executive Officer on an at-will basis. All other employees of the Company are also employed on an at-will basis, as was Mr. Modany prior to the 2014 Letter Agreement.

The New Letter Agreement provides that if the Company terminates Mr. Modany's employment with the Company without Cause (as defined in the Company's Senior Executive Severance Plan (as amended, the "Severance Plan")), or if Mr. Modany resigns his employment with the Company for Good Reason (as defined in the Severance Plan), Mr. Modany will be entitled to receive severance compensation in an amount equal to two times the sum of (i) his base salary, plus (ii) his target short-term compensation amount for the fiscal year in which the termination occurs, payable in substantially equal installments over the twenty-four months after the date of Mr. Modany's termination of employment. In addition, the New Letter Agreement provides that Mr. Modany continues to be eligible to participate in the Severance Plan, which provides for certain severance benefits if a termination of employment occurs under certain circumstances and if a change in control of the Company has occurred or is imminent. If, however, Mr. Modany's employment ends under circumstances in which he is eligible to receive the severance benefits under the Severance Plan, he will not be entitled to the severance compensation described in the New Letter Agreement.

-3-

Receipt of any amounts under the New Letter Agreement will be subject to and conditioned upon Mr. Modany's compliance with the non-disclosure and restrictive covenants obligations of the New Letter Agreement and his execution and the effectiveness of a waiver and release of claims in favor of the Company. Pursuant to the New Letter Agreement, Mr. Modany is subject to certain restrictive covenants, such as confidentiality, non-competition, non-solicitation and non-interference during his employment and for specified periods of time after the termination of his employment. In the event that Mr. Modany breaches any of the non-disclosure or restrictive covenant provisions, he will forfeit any severance compensation, and will be obligated to pay to the Company any amounts of severance compensation already received, under the New Letter Agreement.

The foregoing summary of the New Letter Agreement is qualified in its entirety by reference to the complete terms and provisions of the New Letter Agreement, which is filed herewith as Exhibit 10.2 and is incorporated by reference herein.