Square D Company and Subsidiaries - Page 84

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          the Retained Executives were aware of Schneider’s plight, and               
          that the Retained Executives used their entitlement to the                  
          Termination Awards and SRP Cashouts as a sword in their                     
          negotiations with Schneider concerning the terms of their                   
          compensation for continued employment.  As one Retained Executive           
          expressed it in a letter to a negotiator for Schneider, “One way            
          or the other, * * * [the] parachute payments will be paid”, and             
          “Not one officer is willing to give up what they are entitled to            
          under their [1990 employment] contract”.                                    
               Schneider ultimately agreed to Retention Payments and 1991             
          SRP Benefits that exceeded the Termination Awards and SRP                   
          Cashouts payable under the 1990 Employment Agreements if the                
          Retained Executives had elected to terminate their employment               
          during the June 1992 Window.  Indeed, as reflected in our                   
          findings of fact, the Retention Payment payable to each Retained            
          Executive if his employment terminated (other than for cause) on            
          the first day the 1991 Employment Agreements became effective--             
          that is, without his providing any services--exceeded the                   
          Termination Award to which the executive was entitled if he                 
          unilaterally terminated his employment during the June 1992                 
          Window under the 1990 Employment Agreements.  The role of the               
          1991 SRP Benefit in replacing the SRP Cashout provided in the               
          1990 Employment Agreements is similarly transparent.  The 1991              
          SRP Benefit was in general computed as an amount equal to the SRP           






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