Ex-Dell CEO Rollins picks up $5M on the way out

By: Tom Krazit
Topics: Dell

Kevin Rollins, the former Dell CEO, will collect $5 million in severance pay between May (the end of his tenure) and April 2008, the company announced Tuesday.

Rollins stepped down three weeks ago as part of a house cleaning at Dell. Michael Dell is trying to turn around the company he founded with a new slate of managers and a return to his old role as CEO.

Rollins took the CEO spot from Michael Dell in 2004, but the company struggled this year with slowing growth and an investigation into its accounting practices. For his service as CEO and his "separation from employment with Dell," Rollins will receive $5 million in cash, payable in five $1 million installments. He'll continue to draw his salary until May 4, when he will formally leave the company.

As part of the agreement, Rollins and Dell agreed not to bad-mouth each other under a "nondisparagement" clause. Hewlett-Packard directors probably wish that they had negotiated a similar deal with former CEO Carly Fiorina, who not only pocketed $21 million in severance pay but later authored a book ripping the "dysfunctional" board.