Feeds

Dell Ex-CEO Rollins to get $48 million cash

Might be hard to break a $10,000,000

Boost IT visibility and business value

Former Dell CEO Kevin Rollins will be making bank after all.

Despite receiving a pyrite parachute of a severance package to the tune of $5m, the ex-executive will receive an additional $48.5m in expired stock options that have been frozen because of an accounting investigation.

Rollins, however, will have to tuck himself in for a while before the stock option fairy leaves the money under his pillow. A regulatory filing Wednesday reveals the cash is on the way, but it won't arrive until Dell can post its annual earnings report for the 2007 fiscal year. Currently, no timetable has been set.

The $48.5m represents 7.37 million shares that were vested before Rollins announced his departure in January. Although under normal conditions Rollins could exercise his options 90 days after he left, the company couldn't let him cash out because it was under investigation by the Securities and Exchange Commission for alleged accounting shenanigans. During the wait, the options expired.

But Dell is feeling generous, and has inked a deal to pay Rollins the $48.5m, which represents the average price of Dell shares the week before Rollins' options started pushing up daisies.

Rollins helmed Dell through tempestuous waters since he took over the CEO gig from founder Michael Dell in 2004. The company lost its lead in PC sales to HP, its server market growth withered, it fell behind in processor technology, was hit with an accounting probe, earned a reputation for bad customer support and watched its share prices plummet. Although founder Dell stuck by Rollins through the thick of it, in February he was curtly shown the door and announced his departure.

Since then, Rollins has taken a new job at private equity group TPG Capital to head up the technology arm of the business. ®

Maximizing your infrastructure through virtualization

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.