Tucci, Top EMC Execs Stand To Collect Nearly $150M When Dell Deal Is Done

The Big Payout

It's no secret that acquisitions can result in big paydays for the executives at the top of the company that's up for sale. That's certainly the case with Dell's planned acquisition of storage giant EMC, of Hopkinton, Mass., unveiled Monday. While Dell has indicated that some EMC execs could remain with the combined company, no specifics have been offered. If the deal comes to fruition as planned (it's expected to close by next October) and execs are terminated or leave on their own for "good reason," within two years, it would trigger the pre-set paydays included in the employment agreements of several of EMC's executive leaders, who would rake in millions after the $67 billion deal is done.

EMC Chairman and CEO Joe Tucci, Information Infrastructure CEO David Goulden, marketing chief Jeremy Burton and three other executives stand to collectively receive nearly $150 million, according to EMC filings with the U.S. Securities and Exchange Commission. Here's a look at who's potentially on the verge of a windfall and how it will all come about.

Severance, Bonuses, Accelerated Vesting

EMC's change-in-control policy gives some of the company's top executives a lump-sum cash severance payment equal to up to 2.99 times their annual base salaries and target annual bonuses; a lump-sum cash severance payment equal to prorated annual bonuses for the year; the continuation of several insurance policies for the execs and dependents for three years and accelerated vesting of all outstanding equity awards with the exception of certain performance-based awards, according to a proxy statement filed by EMC in the spring.

The Triggers

One of the events that would trigger the executives' change-in-control agreements is if the company formally agrees to be sold -- which it did last Oct. 12 -- according to the proxy statement. To cash out, the executive would have to be terminated by EMC or its successor without cause or the executive would have to leave his job for "good reason" within 24 months following a change in control or during a potential change-in-control period. The filing defines "good reason" as an adverse change in the executive's position, a reduction in base salary, failure by EMC to provide certain compensation and benefits, and a requirement that the executive's principal place of employment be moved more 50 miles away.

Zane Rowe

CFO Zane Rowe stands to receive about $6.1 million in payouts, nearly equally split between $3 million in cash severance and $3.1 million in accelerated equity awards. Rowe joined EMC last year after two years as vice president of North American sales at Apple. Rowe has also held CFO positions at Continental Airlines and United Continental Holdings.

Jeremy Burton

Jeremy Burton, president of products and marketing, would get about $23.5, including $5.6 million in cash severance and $17.9 million in accelerated equity awards. Burton joined EMC in 2010 after a run as president and CEO of Serena Software. He became president of products and marketing last year.

William Scannell

William Scannell, president of global sales and customer operations, would receive $23.6 million: $5.1 million in cash severance and $18.4 million in accelerated equity awards. Scannell has been with EMC since its early days, joining the company as a sales rep in 1986. He managed sales operations all over the world before becoming executive vice president in 2007. He was promoted to president of global sales and customer operations in 2012.

Howard Elias

Howard Elias, president and COO of EMC Global Enterprise Services, would receive about $23.9 million, including $5.4 million in cash severance and $18.4 million in accelerated equity awards. Elias has been with EMC since 2003, when he joined the company after stint with Hewlett-Packard. He's responsible for the unit's strategy and execution, as well as EMC's consulting services, technology professional services, operational services and customer-support organization.

David Goulden

David Goulden, CEO of the company's largest unit, EMC Information Infrastructure, would receive payments totaling about $31.1 million, including $7.1 million in cash severance and $23.9 million in accelerated equity awards. Goulden has been with EMC since 2002 and was CFO from 2006 until last year, when he became head of EMC II, which he had served as president and COO since 2012.

Joe Tucci

EMC Chairman and CEO Joe Tucci's total payout would be about $39 million, including $8.7 million in cash severance and $30.3 million in accelerated equity awards. Tucci has been CEO since 2001 and chairman since 2006. He became CEO a year after joining the company as president and COO. Tucci is also chairman of the board at VMware.