Falling With Grace
November 13th, 2012 by JBWK
Although not new, severance pay for executives has piqued public interest lately. Critics argue that executives–often leaving under questionable circumstances–receive multi-million dollar payouts on the way out the door. Two recent departures help reaffirm that view.
Former Citigroup CEO Vikram Pandit is collecting just over $6.5 million on his way out. After abruptly resigning (or facing termination) and creating speculation about the pay he left on the table, a disclosure filed Friday afternoon revealed he would, in fact, take $6,653,333 with him as an “incentive award.” He will also continue to vest in company stock.
And Christopher Kubasik, who was about to become CEO of defense contractor Lockheed Martin, also quit after confirming a “close, personal” relationship with a subordinate employee. His haul: a $3.5 million “separation payment.”
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