XM's former CEO Hugh Panero will get severance payments totaling about $4.9 million, according to a SEC filing made today.
Panero announced back in July that he would be resigning as CEO of the company, and Nate Davis would become the interim-CEO as a result. Panero had a salary of $620,480 in 2006.
The former head of XM Satellite Radio Holdings Inc. (XMSR) is also eligible for benefits for 18 months and cash payments instead of 3.5 years of benefits. All of Panero's options and restricted stock awards vested on August 10th, except those issued in 2007. His options remain exercisable over the next 18 months.
He'll still be providing part-time consulting services to XM until March 31st, 2008, or until the merger with Sirius is completed.
You have to envy a level of living where they pay you eight years salary when you LEAVE! Us lowly humans only get two weeks! Honestly, the gap between rich an poor huh? Not to mention he took a company from complete dominance to now merging with another company that was barely a speck a couple years ago, but there's always a few extra million for an executive huh?
And if you don't think this is such a big deal, considering some of the other golden parachutes we've heard of in recent years, consider how much those stock options will be worth if the merger goes through and everything spikes. Who knows how much this little deal will really be worth.
If you compare this to what others have gotten, this is small potatoes. He had the options regardless of whether he stayed. The termination bonus is not enormous for corporations, but it is enormous for the rest of us. This pales in comparison to what Clayton got while at Sirius and after he left. Hugh took a company from paper to product and served XM well...and I'm reminded of that each day when I turn on the tuner. The company needed someone to take it to the next level...very common in new industries.
I, for one, thank Hugh for getting XM off the ground and making it a fantastic service. I look forward to the next steps....
Now we know why he quit.... merger is in the bag and he wanted a paycheck....
well said, iband...he's getting only $4.9mm for pretty much creating and developing an entire new mode of media. and, for the record, this hardly qualifies as being a "golden parachute"...there's no one jumping ship here, and the company is as strong as ever.
now compare that with someone like Bob Nardelli of Home Despot fame...who got a package of more than $210mm for being fired from the company that he helped run into the ground.
Hugh is an "idea" guy and an "implementation" guy...not a "run the company" guy or a "growth through management" guy...i think he's done as much as could be expected to develop this industry and see it through till now.