Feeds

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

We just wanted issue settled quickly, says Wang

SANS - Survey on application security programs

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. ®

High performance access to file storage

More from The Register

next story
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Designing a defence for mobile apps
In this whitepaper learn the various considerations for defending mobile applications; from the mobile application architecture itself to the myriad testing technologies needed to properly assess mobile applications risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.