From the Register
However, on Friday, in SEC filings connected to the rights issue, it was revealed that the former CEO was paid $2.1 million in severance fees, or about three times his annual salary. What's more, Knapp is understood to be collecting $6,000 a day from the company in consulting fees and since his resignation has worked for five days, which would have netted him $30,000 since mid August.
The SEC filings also show that the separation agreement bound NTL and its executives from saying anything negative about Knapp as part of a "non-disparagement" clause.
Now I know why development slowed down this year.
It will be extremely disappointing if there happen to be any redundancies this year considering this pay out. I still find it very strange that a person seen as fundamentally undermining the company to the extent that it had to go into bankruptcy is rewarded in this manner. As a shareholder I would be incensed, but then I'm not. I would be but of course my options became worthless and therefore I never exercised them...
How can corporate governance justify this?
Posted by Paul Goodison at September 30, 2003 03:06 PM | TrackBack