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Dell hits Rollins with $5m slap to the face
Dell's executive compensation committee has proved the cruelest of masters, handing ex-CEO Kevin Rollins a piddling $5m on his way out of Round Rock. The company today revealed the embarrassing payout in a SEC filing, detailing its parting of ways from Rollins.
The former CEO will stay on until May 4 as an advisor and continue to receive his salary and benefits until the final axe falls. At that point, the severance package – if you can call it that – kicks in with Rollins taking five $1m installments through April 15, 2008.
You'd have to go back to the Carter years to find a top executive taking such a slim exit deal.
After all, Rollins shared a brain with founder Michael Dell for many, many years and helped drive Dell through some of its most successful times. His peers such as HP ex Carly Fiorina could not claim similar success or longevity and yet Fiorina parted with at least $21m.
Worst of all, Dell seems to think that dribbling out $1m to Rollins in installments will keep him quiet month-to-month. We dare suggest the thin pay would be more incentive to talk than stay quiet. ®