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THE CUTTING EDGE: FOCUS ON TECHNOLOGY | Heard on the
Beat: Technology

Global Crossing 'Generous' With Former CEO?

March 06, 2000|ELIZABETH DOUGLASS

Global Crossing's former chief executive, Robert Annunziata, who left the communications company last week, also walked away from 13 months of service with a few million shares of company stock and a "a generous severance package," according to a source close to the company.

Details of the financial package have not yet been disclosed. However, Annunziata's underlying employment agreement included a $10-million signing bonus, $500,000 in annual salary, yearly bonuses of at least $500,000 and monthly first-class air fare to Los Angeles from his home in New Jersey for Annunziata's wife, mother and children.

Annunziata also had received options to buy 500,000 shares of Global Crossing stock for $24.82 each upon his hiring, as well as options to buy 4 million shares for $19.82 each over the three-year term of his contract.

If he had exercised all the options that were vested at the time of his resignation, Annunziata would have paid $52 million for 2.5 million shares of Global Crossing stock that was worth about $141 million as of Friday's close of $56.44.

In addition, if his departure was considered a "termination," his contract called for a lump-sum payment of at least $2 million, as well as the immediate vesting of the remaining 2 million options.

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