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Pastimes : Rage Against the Machine
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To: Thomas M. who started this subject5/16/2002 5:41:25 PM
From: James CalladineRead Replies (1) of 1296
 
WorldCom Gives Ebbers Big Severance

WorldCom Gives Ex-President Bernie Ebbers $1.5 Million a Year for Life in Severance Pay
CLINTON, Miss. (AP) -- Former WorldCom Inc. president Bernie Ebbers will receive $1.5 million a year for the rest of his life as part of a severance package with the telecommunications company.

The severance package was disclosed in filings this week by WorldCom with the U.S. Securities and Exchange Commission.

Ebbers resigned under pressure last month amid concerns about his growing debts to the company, which itself is struggling under a heavy debt load.

The severance package also includes $750,000 annually for Ebbers wife if she outlives him.

Ebbers will have access to the company's plane for 30 hours per year. He will have medical and life insurance through WorldCom and can lease office space from the company. He also can keep a company-issued desktop computer.

In return, Ebbers will be available as a company consultant for five years.

His WorldCom and MCI stock options vested immediately, though most of them are worthless, as WorldCom stock has dropped drastically in recent months. WorldCom stock closed at $1.31 Thursday on the Nasdaq Stock Market and is trading well below Ebbers' strike prices to exercise the options ranges from about $20 to $30 a share.

The company also detailed in the SEC filings that Ebbers' loans total $408 million, about $42 million more than previously reported.

The higher amount includes $36.5 million WorldCom gave as collateral for a third-party loan to Ebbers. The rest is interest.

biz.yahoo.com
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