by Beth Connolly on August 2, 2012
It must be nice when your company is so afraid of your skills that it pays you to sit on your butt and do nothing–for fear you will lend your intimidating skills to one of its competitors.
That is the fortunate position that former General Electric executive John Krenicki finds himself in upon his retirement from the company, reports the Wall Street Journal. The fifty-year-old executive will be paid $89,000 a month from now until 2022. In exchange, he has agreed not to work for a competing company for the next three years.
The requirement doesn’t mean that Krenicki is forbidden to work at all, though. In fact, he’s already accepted a position with a private equity firm, Clayton, Dubilier & Rice LLC, to help oversee their portfolio.
Here’s more from the Wall Street Journal:
“Mr. Krenicki’s retirement terms reflect his senior position, long service and significant contribution to GE as well as our interest in receiving strong noncompete and nonsolicitation agreement protections,” a GE spokeswoman said.
Multimillion-dollar executive exit packages have long irked shareholder activists and sparked populist outrage. Former GE chief John F. “Jack” Welch relinquished about $2.5 million a year in retirement benefits–from free flowers to use of a New York apartment–after the perks were revealed in his 2002 divorce settlement.
According to corporate governance research firm GMI, Mr. Welch received the biggest departure payout of all time: more than $400 million. He was followed by Exxon Mobil Corp.’s Lee Raymond, with $321 million. The packages were boosted by the value of the executives’ deferred compensation and stock options accumulated over years of service.
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