Broadcom pays out $111m in ServerWorks case
Transition to Dickhut complete
Broadcom has settled up with former ServerWorks CEO Raju Vegesna and two other employees who left the chipset maker in March.
Vegesna and two coworkers left ServerWorks under somewhat tenuous circumstances. Broadcom management cited disagreements about future directions of its ServerWorks subsidiary as a reason for the executives' departures.
In March, Broadcom announced Duane Dickhut, former head of Broadcom's broadband processor business unit, would take the helm at ServerWorks.
Broadcom and the former ServerWorks employees agreed to a settlement, "resolving and releasing respective claims of the parties." In connection with the settlement, Broadcom will pay out $25 million in cash and expenses and take a one-time charge of $88 million.
When the announcement of Vegesna's exit hit, Broadcom's stock tumbled 16 percent with some speculation that a mass exit could be in order.
To let everyone know things are okay, Broadcom today said, "All other ServerWorks employees, including its other co-founders and senior management and its entire engineering team, remain with the company." ®