Feeds

Former Acer CEO Lanci trousered £27m after PC-mountain cockup

We just wanted issue settled quickly, says Wang

Boost IT visibility and business value

Acer's former CEO pocketed a tidy pay-off worth NT$1.28bn (£27.2m) after exiting the Taiwanese PC giant last year, the vendor has revealed.

Lanci left the firm in March 2011 following a boardroom bust-up over the future direction of the company and carried the can over a calamitous inventory cock-up that forced Acer to write down $150m of ageing stock.

The gold-sealed severance package was confirmed in the Chinese language version of the 2011 Annual Report.

Speaking to The Channel, a spokesperson for Acer in Taiwan HQ confirmed there was no printing error in the filing with the Taiwanese Stock Exchange and that Lanci had indeed walked off tens of millions of pounds richer.

The company declined to comment further but according to reports in the Far East, the size of the pay-off has prompted Acer to set up a compensation committee.

It employed consultants Towers Watson to help draft remuneration guidelines in line with global benchmarking practices.

At the AGM last week, CEO JT Wang conceded the severance pay was "indeed high but that was because that our board of directors hoped to settle the issue quickly by that time to avoid further turbulence in the company."

According to sources, Lanci wanted to continue with the stack 'em high sell 'em cheap mantra at Acer at a time when consumers were falling out of love with low-cost notebooks in favour of tablets or keeping cash in their pockets.

But Acer did not react to the market slowdown from Q3 2010 for another three quarters and found itself with homeless stock. The problems caused Acer to post losses for 2011.

A massive EMEA restructure then saw a number of Acer execs and directors leave the company as it tried to boost sales of higher margin devices and closely scrutinised forecasting and its supply chain.

Wang said: "We have learned a lot of lessons from this issue, so we have been improving our management systems, wage systems and auditing systems to prevent such a situation happening again".

Acer is suing Lanci, now EMEA president at Lenovo, for breach of contract after he joined its Chinese rival. If successful, his former employer might be able to recoup a few wheelbarrows of cash from the pay-off. ®

Build a business case: developing custom apps

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
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.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.