Dell's Rollins walks with $5M

Former CEO agrees to $5 million severance package after 2-1/2 years at the helm.


NEW YORK (CNNMoney.com) -- Personal computer-maker Dell said Tuesday former Chief Executive Kevin Rollins will receive a $5 million severance package, according to a filing with the Securities and Exchange Commission.

Rollins resigned as president and CEO on Jan. 31 but remains employed as an adviser to the company. He will continue to receive his current salary and benefits until his termination in May.

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Kevin Rollins resigned as president and chief executive on January 31.

According to the SEC filing, Rollins will receive five payments totaling $5 million between May 4, 2007 and April 15, 2008. Rollins also agreed to certain noncompetition and nonsolicitation obligations for one year after his termination.

Founder Michael Dell, 41, retook the helm of the struggling computer-maker on Jan. 31, replacing Rollins as CEO. (Full story.)

Shares of Dell (Charts) edged higher on Tuesday.

Michael Dell: We 'can execute better' Top of page

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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.