A doozy of a departure from Dell…
Late yesterday, Dell, Inc. (DELL) filed its Separation Agreement with an outgoing executive, Peter Altabef, and its terms are pretty nice indeed for a guy who has been part of Dell for less than 18 months.
Altabef, President of Dell Services, will officially leave on March 31, 2011; between now and then, he will stay to help his successor, Steve Schuckenbrock, learn the ropes.
From the Separation Agreement that the company filed with this 8-K, we learned that – in addition to earning his regular salary of $675,000 between now and the end of March, Altabef will get $1.35 million in severance pay on March 31, 2011. According to the filing, the amount compensates Altabef for “the equivalent value of 12 months base pay and target bonus.”
In addition – assuming that Altabef executes the agreement and doesn’t later revoke it – the company also agreed to give him 455,470 shares of Dell stock. Based on today’s prices, that works out to another $6.4 million. Dell also agreed to chip in $10,000 to cover the cost of COBRA health insurance premiums for Altabef and his family for six months.
Altabef led the integration of Perot Systems into Dell, which occurred in the fall of 2009. At the time he came on board, Dell filed an exhibit to an Oct. 2, 2009 SC TO-T which disclosed that – in addition to his $675,000 salary – he could get another $675,000 as a target bonus. He also got an initial RSU grant of $6.75 million and Rollover RSUs of close to $9.97 million.
In the Press Release issued yesterday, CEO/Chairman Michael Dell stated:
—We thank Peter for his contributions to Dell and for his commitment to enabling the successful integration of Perot Systems with our business, said Mr. Dell. —The changes we have announced today represent the continued evolution of Dell’s organizational structure. As we continue to provide more differentiated and integrated IT solutions for our customers, it’s important that we take steps to further deepen our customer insights and relationships while strengthening our competitive position in the industry.
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