Dell to pay £24m to ousted CEO

Dell is to pay former CEO Kevin Rollins $48.5m (£24.3m) for his stock options. The move comes six months after he resigned in the wake of investor criticism about the vendor losing market share to rival Hewlett-Packard.

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Dell is to pay former CEO Kevin Rollins $48.5m (£24.3m) for his stock options. The move comes six months after he resigned in the wake of investor criticism about the vendor losing market share to rival Hewlett-Packard.

The award is far greater than Rollins' original severance package of $5m, that is being paid in instalments through April 2008.

Details of the payment were outlined in documents Dell field with the US Securities and Exchange Commission (SEC).

The company has missed deadlines for filing its past three quarterly earnings reports and its 2007 annual report, which has prompted a series of warnings that the Nasdaq stock exchange may stop trading Dell securities.

Dell defends itself by saying it cannot file the missing papers until it completes an internal audit to comply with accounting investigations by the SEC and other official investigations.

Rollins is a former management consultant who joined Dell in 1996, holding a number of executive titles before ascending to the CEO's chair in July 2004.

He stepped down at the end of January 2007 when company founder Michael Dell returned to day-to-day management of the corporation, pledging to recapture Dell's market position and profitability, fend off an investor lawsuit and cooperate with the SEC probe.

Once back as CEO Dell made a number of swift changes, replacing much of his senior management team and eliminating salary bonuses. He begun selling Dell PCs in Wal-Mart and other retail stores, breaking with the famous direct sales model that once allowed the company to grow so fast.

In another major change, Dell, which has made very few acquisitions, has recently been busy buying companies including SilverBack Technologies, the ASAP Software division of Corporate Express, and Zing Systems.

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