Feeds

Dell Ex-CEO Rollins to get $48 million cash

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

Security for virtualized datacentres

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. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Yes, yes, Steve Jobs. Look what I'VE done for you lately – Tim Cook
New iPhone biz baron points to Apple's (his) greatest successes
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Edward who? GCHQ boss dodges Snowden topic during last speech
UK spies would rather 'walk' than do 'mass surveillance'
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.