Kevin Rollins, the former CEO of DELL (NASDAQ: DELL) has gotten $48.5 million for stock options he earned while at the company. The odd part about the deal is that, according to The Wall Street Journal, the "cash payment program [will] include expired options." That is, options that he no longer has any rights to.
Such an arrangement is unusual. Normally such payment would be made only for options still owned by a former officer or employee.
Well, it is good to be king, or ex-king anyway. The buyout becomes another in a long line of special treatment given to CEOs who have been pushed out for lack of performance. Dell's earnings faltered under Mr. Rollins and the company ran into accounting problems that are still being investigated by the federal government.
Dell and Mr. Rollins will undoubtedly be criticized for the special deal, but he has his money to keep him warm at night.
Douglas A. McIntyre is a partner at 24/7 Wall St.
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