Outgoing Seagate CEO: Bill's big bill
Failure has its own rewards
Seagate terminated ex-CEO Bill Watkin's employment on 4 February and will pay him $5m according to SEC filings.
Watkins resigned as a director on that date. A separation agreement is now in force between him and Seagate and, as a consideration for agreeing to it, the bill for Bill is cash payments totalling $5,000,008. This equals the sum of 24 months of his annual salary and two times his target annual bonus level for the Company’s prior fiscal year, in two equal installments: one installment of $2,500,004, payable on or before February 26, 2009, and a second installment of $2,500,004 payable within 10 business days of December 2, 2009.
There is a separate lump sum cash payment of $29,944, payable on or before 26 February, 2009, to help defray continued health insurance coverage costs.
The agreement precludes Watkins being employed by any Seagate competitor, soliciting business from Seagate customers or getting Seagate employees to work for anyone else up to 2 December this year. After that, he is free to do what he wants. ®