Michael Dell takes $11m pay hit

I wonder how Dell was able to get $67b in credit while the underlying Dell business is losing money. It is supposedly being financed in the high-yield (aka junk) bond market with double digit interest rates. Double digit interest on $67b is, if my calculations are correct, a lot. Those interest payments, if the business goes south (which is pretty standard in these big mergers), could eat all of the combined profit of all the companies involved. It is like Dell was going down so they decided to drag EMC/VMware down with them in a gambit to try to reverse their fortunes. It works out for EMC shareholders and executives because they get paid out up front, especially the executives, but not great if you are an employee or customer of EMC/VMware.

$46 million?

"The filing also revealed that if Michael Dell's position were terminated, he would be paid $46m."

On Wall Street, that used to be called the poison pill, or the golden parachute, depending on your point of view.

Either Mike really wants to stay there or he really wants to make it impossible to succeed without him.

Perhaps both?

Sell stuff..

He can sell his personal Boeing 787 to recover costs (registration - N28MS)