Former Dell CEO Kevin Rollins is cashing out.
Rollins, who resigned in January when Michael Dell resumed day-to-day control of his company, will receive more than $48 million in cash from his former company, according to an Aug. 8 filing with the Securities and Exchange Commission.
The filing with the SEC comes a week after Rollins signed on as a senior advisor with TGP Capital Partners, a private investment firm based in Kansas City, Mo. In his new role, according to TGP, Rollins will focus on technology as well as the consumer, commercial and services sectors.
In the SEC filing, Dell, based in Round Rock, Texas, detailed the exact terms of Rollins cash payment, saying Rollins officially retired on May 4, 2007, and "under the terms of his option agreement, 7,370,000 unexercised options that were vested at the time of his retirement expired 90 days after this retirement date."
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The date the option vested, according to the filing, was Aug. 2, and now Dell will pay Rollins $48,462,495 for the unexercised stock options. The company has agreed to pay Rollins the money 45 days after it files its 2007 Annual Report with the SEC.
Dell will incur the compensation expense in the second fiscal quarter of 2008, according to the filing.
In the past several months, Dell has not filed a number of reports with the SEC due to an ongoing internal review of its accounting practices. It is also facing scrutiny by the SEC and the U.S. Attorneys Office for the Southern District of New York.
In May, Dell filed paperwork with the SEC claiming that it could not file its 11-K report, which concerns the companys 401(k) plan for employees, because of an ongoing internal audit.
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Following Rollins departure from Dell Jan. 31, Michael Dell has tried to reverse the companys standing in the PC market. During the last year, the company has lost market share to Hewlett-Packard as well as to smaller companies, such as Acer, that have begun offering low-cost consumer laptops.
Since his return, Michael Dell has focused on bringing new, cutting-edge technology to the companys PC line while focusing more on the consumer market. Dell has also begun a channel strategy in order to better engage the enterprise market and has looked to retail sales to bolster its direct sales model.
The company has also announced that it will reduce its work force.
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