Dell is to pay
former chairman and chief executive Kevin Rollins $5m over the next
year as part of a non-compete severance deal, according to Securities and Exchange
Commission (SEC) filings.
Rollins resigned from his positions at Dell on 31 January, shortly
before the company announced that founder Michael Dell would be
returning as chief executive.
Rollins took over as chief executive in 2004. But several quarters
of declining profits and slow sales saw the company lose its crown
to HP as the world's top PC maker, prompting Rollins's resignation
two weeks later.
Dell is also the target of an SEC investigation into the company's
accounting practices, and Rollins was among those named in a
shareholder lawsuit alleging an executive 'pump and dump'
scheme.
Rollins will remain with the company as an advisor on his current
salary until 4 May, at which point he will receive the first of
five severance payments.
The payments will be made until April 2008 on the understanding
that Rollins does not work for one of Dell's direct competitors
over the 12-month period