The much anticipated plan to cut down on the multi-million dollar pay cheque of the top executives seems to have gone in vain after the revelation that many CEOs are taking away much more than $100 million when they make way for a new CEO.
Sam Palmisano, IBM chief, will take along $170 million when he will be making way for a new CEO towards the end of 2011, however, he will still remain the chairman of the multinational company.
Last month, it was revealed that oil boss of Texas' Nabors Industries, Eugene Isenberg, can actually earn $126 million when he will let go off the CEO title, still the 81 year old business man will be holding the post of chairman.
Earlier this year, Google confirmed that their outgoing CEO Eric Schmidt took away $100 million while leaving, reported Daily Mail (opens in new tab).
Eleanor Bloxham, of The Value Alliance an adviser for corporate directors and executives, commented that shareholders anger regarding these massive payouts is definitely 'understandable'.
Despite Securities and Exchange Commission's rules that requires approval of the shareholders for executive's compensation, the corporate America is continuing with the trend of handing over huge payouts to their outgoing executives.