Feeds

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

We just wanted issue settled quickly, says Wang

Security for virtualized datacentres

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. ®

Security for virtualized datacentres

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
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?
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.