Fucks given == 0
If his contract says that's what he's due, then pay the bloke.
The Dell-EMC buy may not be the best possible outcome for EMC’s Federation, but the bitterness will be sweetened for EMC head honcho Joe Tucci by a possible near-$30m payout when he leaves next year. Analysis of a 30 April, 2015, EMC proxy statement (PDF) for the EMC AGM, by an exec pay research firm called Equilar, found that …
Not entirely: company mergers/acquisitions are often driven by the personal remuneration of the boardrooms rather than shareholder value. Indeed, shareholders often loose value in such deals (53% according to KPMG: see http://www.theguardian.com/business/1999/nov/30/5)
It doesn't make sense from a shareholder perspective to have such clauses in CxO contracts. As you say, it may put shareholder interests at odds with the interests of executive leadership. If they legitimately worry about "we want our team to stick around through a merger to insure it goes smoothly" they can tell them "if there's a deal where we sell out, we'll discuss a separate contract/bonus to cover that period if necessary".
But as was pointed out, the boards are often composed of other CEOs, so the contracts they write are highly favorable to executive officers, not so much to shareholders...
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It's shareholder money that determines executive pay and getting $67bn in cash for EMC at the high watermark of the on-premise storage market means that 10 times this wouldn't be an unreasonable pay-off.
I assume he must have a big shareholding and so will be earning a lot more from that, though.
Whatever arguments there are about the C level vs floor level pay disparity Tucci is one of the reasons it's grown so much. Given what corporate america pays to people like Mark Hurd for destroying billions in shareholder value it's hard to see too many being opposed this one except on the general principle that it's an obscene amount of money.
>Do we want the disparity between CXO-level pay and that of the ordinary salaried peon to be so grotesquely huge
Luckily from what I recently read if true, market forces will soon be correcting this artifact of crony capitalism somewhat. Due to Baby Boomers, India and China joining the global capitalism paradise, the last 30 years have seen a historical glut of labor supply. That is due to change in the next decade in a big way. Simple supply and demand that not even the cronies can overcome completely.
That is a a very old chestnut and virtually without foundation.
The company will sell its products for what the market will bear and as long as the costs of production show a sufficient margin the product will be made and marketed at a price. If a company's overheads are so high or its turnover so low it cannot make an acceptable profit it is ready to be sold, reorganised or wound up.
It would have been much more accurate to say:
Yes, but every shareholder is paying for that.
Microsoft need to evolve into a full server, pc and cloud infrastructure vendor. Converged all the way. The new Dell & EMC combo wil be tailored to fit perfectly with Microsoft who will then "buy" it from the private owner - who already has borrowed most of the funding from MS. Just guessing...
The problem with CxO pay is not the amount: it's the lack of linkage between remuneration and performance. Elop ($33.4m at Microsoft/Nokia), Apotheker ($13.2m at HP) and Fiorina ($40m, also at HP) spring to mind in our industry.
By contrast, Tucci has done a pretty good job at EMC, so I can't begrudge the man his money. He bought VMware for $625M a decade ago and now it's worth north of $30B.
Pay the man his dues. Unlike some of the other charlatans listed here, at least Tucci stuck at it, with one company, and through the good and bad times, and over many years.
He's a clear cut above messrs Fiorina and Hurd. I've worked under them, and their zero value-add, and trails of destruction are still staggering.
Some useless deal brokers will doubtless make far more from this deal than Tucci...