Former Chief Executive Kevin Rollins of Dell Inc. is to be paid roughly $48.5 million in cash relating to expired stock options. Rollins found this out after meeting with a senior adviser by private equity firm TPG Capital last week. Rollins will receive the money on or before 45 days after Dell files its annual report with securities and regulators.

Rollins had officially resigned effectively on May 4th after he was replaced in January by founder Michael Dell. Under Rollins leadership Dell had become the biggest PC maker thanks to the built to order manufacturing model which allowed Dell to operate with virtually no inventory. But HP passed up Dell as the Number 1 PC maker in 2006. Dell also had the biggest ever consumer electronics recall in history pertaining to their laptop batteries made by Sony. This didn’t help Dell out at all and they received many complaints on poor customer service.

Shares of Dell rose about 2.1 percent and closed at $27.78 on Nasdaq Wednesday.

[via CNN Money]

Tags: Dell, Kevin Rollins, CEO, Business, Stock Options, Michael Dell

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