A report on Friday indicated that Louis R. Chenevert, United Technology Corporation’s (NYSE: UTX) chief executive officer is taking an early retirement. Mr. Chenevert will leave the company with a lucrative compensation plan worth nearly $200 million. The move came because of an apparent imbalance in work and personal life
A remuneration analyst firm, Clear Bridge Compensation Group indicated that the company’s CEO will walk away from the company with an accumulated plan of around $195 million, which will consist of performance related bonuses and stock options.
The analyst firms say, Louis Chenevert will receive $31 million in pension benefits and more than $136 million in unexercised stock options. His performance related bonuses are said to total at around $28 million, resulting in the grand total to $195 million.
However, it is worth noting that pension benefits for Mr. Chênevert were accumulated over a period of six years as the chief executive of the Hartford, Connecticut-based company. The company provides parts for aircraft engines and elevators as well as air conditioning units.
Mr. Chenevert had also served as the president of the Pratt & Whitney’s aircraft engine business. The pension benefits also include a portion of Mr. Chenevert services at the aircraft company.
Reports suggest that the reason for Mr. Chenevert’s decision to step down from his position – after having served as the company’s chief executive officer for about six years – is that he had become estranged of the company and its operations. The decision of Mr. Chênevert came as he returned from a trip to Taiwan, to overlook the progress of his yacht being crafted in a factory there, upon his return he was asked about his work and personal life balance, and after a meeting with Mr. Edward Kangas, the Lead Director, Mr. Chenevert rendered his resignation to the company.
Greg Hayes is reported to succeed Mr. Chenevert as the company’s new CEO, he has served the company as Chief Financial Officer.
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