Staff Writer-Austin Business Journal
Members of Dell Inc.’s board of directors and senior executives cashed out for nearly $60 million as the company took its final publicly traded breaths last week.
Bloomberg reported that the payout included partial compensation for options that couldn’t be exercised because conversion prices were more than the purchase offer of $13.75 a share, citing filings with the U.S. Securities and Exchange Commission.
The $24.9 billion shareholder buyout led by CEO Michael Dell was completed last week to take the company private. The Round Rock-based company had been publicly traded for 25 years.
Dell Inc. reported that $42.1 million was paid to senior executives, including nearly $12 million Jeff Clarke, president of global operations.
The company’s 10 outgoing directors received $17 million, including $10 million to board member Don Carty.
Michael Dell received $461,752, for the 33,582 shares he owned in a retirement plan that weren’t rolled over into the private company, of which he now owns 75 percent, Bloomberg reported.
The smallest payouts went to three of the four directors on the board’s special committee that managed the buyout process, which started in January.
Dell, the No. 3 computer maker in the world, employs 14,000 workers in Central Texas. Michael Dell proposed the buyout to enable him to transition beyond personal computers to the higher profit margins provided by software and services.