jamesglewisf
03-23-2003, 04:23 PM
http://www.quicken.com/investments/news_center/story/?story=NewsStory/dowJones/20030321/ON200303211047000297.var&column=P0DFPElectronic Data Systems Corp. (EDS, news) said it would take a first-quarter charge for its ousted top executive's severance package, which is valued at more than $ 35 million, including retirement benefits.
EDS said it would pay outgoing Chairman and Chief Executive Richard H. Brown a lump sum of $12.4 million and would vest 344,000 previously awarded deferred stock units valued at $5.4 million, based on Thursday's closing price of $15.77.
Mr. Brown will receive retirement benefits with a present value of $19.6 million, to be paid in monthly installments. Mr. Brown will also get the continuation of "certain other benefits" and will have his unvested stock options accelerated.
The agreement, entered into in December 1998, was part of attracting Mr. Brown to EDS from Cable & Wireless PLC (CWP, news). Late Thursday, EDS ousted Mr. Brown, and named former CBS Corp. chief Michael H. Jordan to the top spot.That one is huge. I'm sure people will complain about it, but EDS agreed to it when they hired him.
What do you think of severence packages?
EDS said it would pay outgoing Chairman and Chief Executive Richard H. Brown a lump sum of $12.4 million and would vest 344,000 previously awarded deferred stock units valued at $5.4 million, based on Thursday's closing price of $15.77.
Mr. Brown will receive retirement benefits with a present value of $19.6 million, to be paid in monthly installments. Mr. Brown will also get the continuation of "certain other benefits" and will have his unvested stock options accelerated.
The agreement, entered into in December 1998, was part of attracting Mr. Brown to EDS from Cable & Wireless PLC (CWP, news). Late Thursday, EDS ousted Mr. Brown, and named former CBS Corp. chief Michael H. Jordan to the top spot.That one is huge. I'm sure people will complain about it, but EDS agreed to it when they hired him.
What do you think of severence packages?