Dell's latest SEC filing paints picture of CEO's future employment
The neverending saga about the future of Dell continues as the PC maker has filed a whopping 274-page proxy statement outlining its case to go private.
The Round Rock, Texas-based company filed a Form PREM14A with the U.S. Securities and Exchange Commission on Friday, explaining to shareholders in legalese about some of the rationales for going private and what Dell could look like after all is said and done.
Wedged in between numerous recommendations from the board and scheduling meetings for votes, there's also a snippet about the role of the company's founder and CEO, Michael Dell.
Dell's legacy and future with his own business has been called into serious question in the last few weeks.
Amid reports of a potential buyout by private equity investment firm Blackstone, it was even rumored that Dell would be replaced (either forcibly or due to his own resignation) by Oracle president and former HP chief Mark Hurd.
While everything involving the future of Dell (including who will sit at the top) is up in the air at this point, the SEC filing does highlight a few things:
Term. The term of Mr. Dell’s employment is indefinite and may only be terminated (i) by Mr. Dell; or (ii) by Parent’s board of directors (a) for cause at any time or (b) following a change in control of Parent or an initial public offering, whichever occurs earlier.
Base Salary. Mr. Dell will be entitled to receive an initial annual base salary of $950,000. The base salary will be subject to annual review by Parent’s board of directors and may be increased, but not decreased.
Annual Bonus. Mr. Dell will be eligible to earn an annual bonus pursuant to the bonus plan applicable to senior executive officers of the Company, with a target equal to 200% of base salary.
But it looks like there are a few catches too.
Along with a few notes about golden parachutes and stock options, Michael Dell is also going to be tied to a confidentiality agreement about all "sensitive" info related to the Dell corporation and its subsidiaries as well as all "intellectual property created by him during and within the scope of his employment."
The full 274-page filing is available online now.
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