Feeds

Dell Ex-CEO Rollins to get $48 million cash

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

High performance access to file storage

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. ®

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.