Former Apple (AAPL)
chief executive Gilbert Amelio walked away from the computer company with a hefty $6.7 million severance package, but his plane didn't get a cut in the deal, according to a securities filing today.
The Securities and Exchange
Commission filing also disclosed that Apple interim CEO, cofounder, and board member Steve Jobs, along with the company's other directors, are seeking shareholder approval to receive stock options instead of cash compensation for their contributions to the board.
Jobs and the other board directors are requesting an initial 30,000 in stock options. The options can be exercised at 23-5/8 a share, with an expiration date of August 14, 2007. Apple closed today at 15-13/16, up 3/16.
Apple had, in the past, paid directors a retainer of $6,750 per quarter, $2,000 per board meeting attended, and $1,000 per committee meeting attended. However, last August that practice was terminated in favor of a stock options compensation policy that was approved by the board but still requires shareholder approval.
Amelio, former CEO of Apple, received a $1 million cash bonus from the company in 1997.
Amelio, who racked up a net loss of $884 million during the first three
quarters of fiscal 1997, was ousted in July, days before Apple announced its third-quarter results. At the time he was earning a base salary of $990,000.
However, Amelio had to spend $1.5 million of his severance on paying off part of a $5 million loan from Apple that remained outstanding at the time of his resignation. Although the balance of the loan was supposed to be due 90 days after his departure, an agreement ultimately was struck to extend the deadline to September 15, 1998. The deal was granted in return for releasing the company from "certain legal claims" that were not detailed in the filing.
Unfortunately for Amelio, the deal did not include a continuation of Apple's lease on Amelio's plane.
When Amelio was still with the company, Apple was paying $14,000 a month, through Amelio's Aero Ventures company, to keep the plane at his disposal. The company also sprang for other expenses, such as simulator training and pilot fees. During fiscal 1997, Apple paid Aero a total of $471,461. The company's obligation to make payments for use of the aircraft ended upon Amelio's ouster.