Dell Inc. (NASDAQ:DELL)’s leveraged buyout deal has been the subject of controversy among the company’s shareholders, and today we discover that if the original go-private deal happens, founder Michael Dell’s annual paycheck from the company could be worth more than $1 million.
The Blackstone Group L.P. (NYSE:BX) has reportedly said it would consider keeping Michael Dell on as CEO if its bid is the winner, although Mr. Dell said he would only consider it if he is guaranteed to be the company’s CEO afterward.
A Look Back At Warren Buffett’s Best and Worst Oil & Gas Investments
Warren Buffett is perhaps best known for his large investments in some of the world's most recognizable brands, companies like Coca-Cola, American Express and Apple. Q1 2020 hedge fund letters, conferences and more Companies that fit into this bracket seem to fall squarely within his circle of competence. They sell a product that's easy to Read More
The Wall Street Journal today pointed to some regulatory documents filed Friday which indicate that if the original go-private deal offered by Mr. Dell and Silver Lake Partners is the winner, Mr. Dell would receive an annual salary of $950,000 per year. On top of that, he could receive yearly bonuses of twice that number, plus stock options.
The contract doesn’t officially have the founder’s name filled in on it, although the other parts of the filing with the Securities and Exchange Commission do point to his position at the company if or when it goes public.
In addition to the massive payouts Michael Dell would receive, the contract also indicates he gets 20 or more paid days off each year, plus $12,500 in financial planning reimbursements each year. Other perks include up to $10,000 per year including “travel and lodging costs” for Dell Inc. (NASDAQ:DELL) and his wife to have their yearly physicals.
He would even be free to leave the company whenever he wants, without notice and for any reason—or even none at all.
There are also other concerns about Dell Inc. (NASDAQ:DELL)’s proxy filing. All Things D reports on UBS analyst Steve Milunovich’s reduced expectations for the company’s earnings in the 2014 fiscal year. He said it indicates lower expected profits because of pricing pressure on PCs and “required investments.” As a result, Milunovich lowered his per-share earnings to $1.30 per share—a reduction of 40 cents, saying he “underestimated the investments needed to become an enterprise player.”