Dell’s massive $US67 billion acquisition of EMC means that EMC’s 67-year-old CEO will finally have a successor (Michael Dell) and be able to retire.
That’s something he’s been postponing for years.
Tucci will walk with a handsome payout for orchestrating this happy ending for EMC shareholders.
He may get $US27 million, according to data compiled by Equilar, an executive-compensation research firm, as reported by the New York Times.
EMC outlined “change in control” compensation when it filed its last proxy statement with the SEC in March.
According to the chart below from that proxy statement, Tucci would make $US39 million if he left the company due to a change in control.
However, that $US39 million was based on $US29.74 per EMC share, and it assumed that Tucci would be entitled to all of his upcoming performance-based equity awards.
Dell is buying EMC for $US24.05 per share in cash, plus some stock associated with EMC’s interest in VMware. Dell estimates that, all told, EMC stockholders will get $US33.15 per share.
He’ll have to wait a few months until the deal closes to get his bonus. Tucci has promised to stay on as EMC CEO until then and that’s expected to happen between May and October, 2016, Dell says.
We reached out to EMC for comment and will update when we hear back.