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Strategies & Market Trends : Range Bound & Undervalued Quality Stocks -- Ignore unavailable to you. Want to Upgrade?

To: BWAC who wrote (4695)	8/17/2001 9:03:48 AM
From: JakeStraw	Read Replies (1) \| Respond to of 5499

In the explain-this-to-me-again category, Lucent (LU:NYSE) filed Securities and Exchange Commission documents this week revealing that it would pay former CEO Rich McGinn, whom it ousted for poor performance last fall, $5.5 million for the privilege of not working there. He'll also get reimbursed for "reasonable" office costs of up to $9,000 per month until December or until he gets a new job, whichever comes first (we're betting on December). Oh, and ex-CFO Deborah Hopkins takes home another $3.3 mil in severance. This is the same company that just said it plans to fire up to 20,000 of its employees, on top of earlier mass layoffs. It also just posted a $3.25 billion third-quarter loss, said it would take a charge of up to $9 billion in the fourth quarter and announced it would ax its dividend. Sound like a company with cash to spare? Didn't think so. And Lucent could have chosen a worthier beneficiary for the money it doesn't have. In the year leading up to his ouster as CEO, McGinn, who's widely blamed for steering the company into its current mess, presided over a company stock decline of about 60%. thestreet.com