Newspaper article International New York Times

EMC's Chief Cements Legacy

Newspaper article International New York Times

EMC's Chief Cements Legacy

Article excerpt

The $27.2 million that Joseph Tucci will receive when Dell takes over far overshadows the $123,636 he would have received had he willingly retired.

For Joseph M. Tucci, the chief executive of EMC, completing the largest technology deal in history may mean as much for his reputation as it does for his bank account.

The 68-year-old had been flirting with retirement since 2009, postponing it several times in the face of slumping stock performance, pressure from an activist investor and a changing environment for computer storage. In agreeing to a $67 billion acquisition of EMC by Dell, Mr. Tucci, who will step down as part of the deal, has the opportunity to resurrect his legacy and generate about $27 million more in compensation than had he willingly retired.

"He wanted to be the guy who drove whatever was going to happen in EMC's next phase," said Glenn O'Donnell, an analyst at Forrester Research, who worked at EMC in strategy and marketing from 2005 to 2008. "He built EMC into what it is. This is his baby, and he didn't want to see it get ripped apart."

For Mr. Tucci, this transaction was more about being a battle- tested dealmaker than his payday, said Mr. O'Donnell. Mr. Tucci agreed to stay as EMC chairman and chief executive until the transaction was completed, according to a statement on Monday. After that, when he leaves, he will be owed $27.2 million by EMC, according to data compiled by Equilar, an executive compensation research firm. Had he willingly retired -- as he said he would do in 2012, 2013 and earlier this year -- Mr. Tucci would have received a mere $123,636, the data showed.

Mr. Tucci, through an EMC spokesman, declined to comment on the pay package.

Mr. Tucci felt the pressure to act after Elliott Management, the activist hedge fund run by Paul Singer, amassed a stake in EMC in 2014 and pushed for a breakup. …

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