From today's WSJ, the Thoman 'bye bye' package. Only interesting item among the boilerplate is the fact that he is due a 'bonus' of 375k for months worked this year. What target could he have possibly met that merits a 'bonus' this year? Possibly no sick days?? <ggg> The final comment on the 'high cost' of recruiting talent in corporate America is quite ironic, I would offer that the cost to Xerox was much higher in turmoil and lost market cap...
Regards,
John
Former Xerox Chief Thoman
Got $13 Million in Compensation
By a WALL STREET JOURNAL Staff Reporter
STAMFORD, Conn. -- Xerox Corp. former Chief Executive G. Richard Thoman, who resigned under pressure in May, received a $13 million payment last month as part of his separation agreement.
That money came from Xerox's deferred-compensation plan, according to a letter outlining the agreement filed with the Securities and Exchange Commission.
Mr. Thoman will also receive a $375,000 bonus in July 2001, reflecting the months he worked this year, the company said. In addition, he will receive a retirement benefit of $800,000 a year for the rest of his life. His wife would continue to receive that annual payment after his death. He also received $200,000 in cash in lieu of continuing life-insurance benefits.
Mr. Thoman will retain options to buy 2.2 million Xerox shares at prices ranging from $21.78 to $59.44. Those options can't be exercised for a profit at the moment because Xerox shares were at $16.69, unchanged, in 4 p.m. New York Stock Exchange composite trading Monday.
Mr. Thoman, who held the top job only a year, had been lured to Xerox from International Business Machines Corp., where he served as chief financial officer. But, during his tenure, Xerox struggled with a troubled reorganization of its sales force, disappointing financial results and a plunging share price. Mr. Thoman couldn't be reached to comment.
A Xerox spokesman said the payments reflected the contract the company agreed to when Xerox hired Mr. Thoman from IBM. Alan Johnson, an executive-compensation consultant in New York, said the separation package demonstrates the high cost of recruiting CEO talent in America's boardrooms. |
