Feeds

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

We just wanted issue settled quickly, says Wang

The essential guide to IT transformation

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. ®

Next gen security for virtualised datacentres

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
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
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 Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
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?