UPDATED: Calista Corp. president placed on leave

Updated 9/2/2010 @ 3:20 p.m.:
Calista Corporation just sent out a press release (PDF) confirming that its placement of president and CEO Matthew Nicolai on leave is related to a investigation of alleged sexual and workplace harrassment.

Calista's board acted after it became aware of a lawsuit against Nicolai alleging the conduct and has relieved him of his duties pending an investigation into the other employee's claims, according to a prepared statement by Calista spokesperson Lincoln Garrick. The plaintiff in the lawsuit, Emily Davenport, president of a subsidiary company owned by Calista, is "on administrative leave unconnected to her complaint," according to the press release.

"Calista and Solstice have personnel policies that prohibit harassment in the workplace, and Calista's Board and executive management wishes to reaffirm our commitment to providing a harassment free workplace," states the press release. "Consistent with our Calista and Solstice Personnel Policies, Calista will conduct an independent third party investigation into the facts of this matter."

Original story:

Calista Corp.'s longtime president and CEO Matthew Nicolai is no longer on the job, according to corporation spokesperson Lincoln Garrett, who declined to elaborate on the rationale behind the move. After meeting over the course of two days late last week, Calista's board on Monday placed Nicolai on leave and installed Andrew Guy as the acting president and CEO.

The action comes a little more than two weeks after a female coworker claiming to be a former girlfriend of Nicolai's raised allegations that he stalked and sexually harassed her and used his influence as the company's president to meddle in her business affairs. His retaliation ultimately cost her her job prevented her from obtaining a written employment contract, according to a  lawsuit.

Emily Davenport filed the lawsuit against Nicolai on Aug. 11 in Anchorage District Court outlining her claims. What follows is her version of their relationship and his behavior:

Calista hired Davenport in January 2008. Eight months later the corporation made her the president of one of its subsidiaries -- Solstice, an advertising agency. The next month she and Nicolai began dating. Nine months later, by May 2009, Nicolai had grown overly possessive and Daevnport chose to end the relationship. Nicolai wanted the relationship to continue, and that's when things took a turn for the worse for Davenport.

Calista Corp. declined to comment on whether the lawsuit was a factor in Nicolai's dismissal. "I can't speak to that," Garrick said, emphasizing that the president and CEO serves at the pleasure of the board. "This decision was determined to be in the best interest of the company and shareholders."

A call placed to Nicolai's attorney was not immediately returned.

Nicolai joined Calista in 1975 as communication supervisor, moving up through the ranks until his appointment as president in 1994. Under his guidance, the corporation grew from 57 employees to one with more than 800 employees in 25 states and Guam, according to his biography. He is a director for the Alaska Federation of Natives and has served on several boards, including Commonwealth North, the Anchorage Chamber of Commerce and the Alaska Democratic Party.

Garrick describes Guy, Nicolai's acting replacement, as a "Calista success story." Corporation scholarships helped him get through college. He earned his undergraduate degree at the University of Alaska Fairbanks, and received a law degree from the University of Colorado, and has served as Calista's executive vice president and general counsel since 1996.

This is a developing story.

Contact Jill Burke at jill(at)alaskadispatch.com.