US, WASHINGTON (ORDO NEWS) — A golden parachute is a bonus that is paid to an employee of a company, usually a manager, in the event of his dismissal or resignation of his own free will.
This payment allows former company executives to resign with good money in the account, even if their departure was associated with a scandal or in some way damaged their reputation.
Below we will talk about the largest payments that company executives received after leaving.
10. Rex Tillerson – $ 182 million
In 2001, he became senior vice president of ExxonMobil, in 2004 he joined the board of directors of the corporation, from January 1, 2006 – chairman of the board of directors and CEO of ExxonMobil.
Under Tillerson’s leadership, ExxonMobil made $ 34 billion in net profit in 2014 and paid $ 80 billion in taxes.
Magazine Forbes at the end of 2015 placed Tillerson in 25th place in the ranking of the most influential people in the world. On December 13, 2016, Rex Tillerson was nominated by Donald Trump to the post of US Secretary of State.
After leaving their ExxonMobil, Tillerson received $ 182 million.
9. Tom Ryan – $ 185 million
Tom Ryan worked at CVS, the largest pharmacy chain in the US, for 13 years before the company announced its merger with Caremark in 2006. The Federal Trade Commission has launched an investigation into whether CVS has applied non-competitive business practices.
It turned out that CVS used fraudulent practices in pricing, and Tom Ryan was forced to leave, having received a considerable amount of money.
8. Hank McKinnell – $ 188.3 million
Hank McKinnell served as CEO at Pfizer for five years. While McKinnell was at the helm of the company, the corporation suffered losses of almost $ 140 billion.
After his departure, the shareholders had doubts as to whether he should pay compensation in the amount of more than $ 188 million, including a pension of $ 83 million.
7. Louis Gerstner – $ 189 million
Louis Gerstner received one of the largest compensation in the history of IBM. He left the company after nine years of work. In addition, his contract also stipulated that he receives a number of other bonuses, including home insurance, financial planning assistance and others, within 20 years after leaving the company.
6. John Kanas – $ 214.3 million
John Kanas has been with North Fork Bank for 29 years in New York, so it is not surprising that he received a generous reward after he announced his merger with Capital One in 2006. However, Kanas’s pension was only $ 1 million, while the rest of the compensation, more than $ 214 million, consisted of stock gains.
5. Bob Nardelli – $ 223.3 million
This was one of the toughest dismissals when Home Depot CEO Bob Nardelli was forced to resign by shareholder decision, having worked for the company for only six years. The conflict happened due to the fact that Nardelli could not come to an agreement with the shareholders about his annual salary, so they pointed him to the door. Nevertheless, Nardelli received very good compensation.
4. Edward Whitacre – $ 230 million
Telecom giant AT&T pays big compensation, but Ed Whitacre got the biggest compensation. He worked at the company for 17 years and left it with more than $ 230 million in his account, including a pension of $ 160 million. In addition, he was given other bonuses, including the right to use the company’s plane, insurance, and so on.
3. Bill McGuire – $ 286 million
UnitedHealth has undergone major changes over the past decades, including the departure of its chief executive, Bill McGuire, who has been with her for 15 years. He left after the company found out that he improperly managed the company’s assets, which led to the company receiving fines. Nevertheless, McGuire received a significant amount of money after leaving, including a pension, which amounted to almost $ 103 million.
2. Lee Raymond – $ 320.6 million
Exxon is known worldwide for a variety of reasons. Lee Raymond has been with the company for 12 years. While he was managing the company, its annual revenue grew from $ 5 billion to over $ 25 billion. As a reward for his work, Raymond received more than $ 320 million.
1. Jack Welch – $ 417.4 million
The biggest compensation was received by Jack Welch, who worked at General Electric for twenty years. However, his dismissal was associated with a scandal, as it turned out that he misused the bonuses provided by the company, including the use of luxury apartments in New York.
Because of this, General Electric was forced to unveil more details regarding the bonuses that company management receives.
Despite the scandal, Welch received compensation in the amount of more than $ 417 million.
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