Exiting palmOne CEO Getting Cash Windfall

A article on TheStreet.com points out recent papers palmOne filled with the SEC regarding exiting CEO Todd Bradley's compensation package. Bradley will walk away from palmOne with a check for over $2.4 million dollars and the company will take a 3.2 million dollar charge related to his severance package.

The full article can be found here. Excerpts:

The company plans to take a $3.2 million charge related to the severance package in its fiscal third quarter.

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Since that warning, palmOne's shares have lost 40% of their value. That plunge includes a further drop on Thursday, when the company's stock closed regular trading off $1.06, or 4%, to $25.39.

SEC Statement
Item 1.01 Entry into a Material Definitive Agreement.

On January 24, 2005, palmOne, Inc. ("palmOne or the "Company") entered into a separation agreement (the "Agreement") with R. Todd Bradley, its Chief Executive Officer. Pursuant to the Agreement, Mr. Bradley will remain with palmOne as the Chief Executive Officer through February 25, 2005 and as an employee advisor through June 3, 2005, will receive salary and bonuses of between approximately $2.4 million and approximately $2.8 million and has agreed to non-competition and non-solicitation provisions. In addition, as of June 3, 2005, all of Mr. Bradley's unvested shares of palmOne restricted stock and a portion of his unvested options to purchase shares of palmOne common stock will have their vesting accelerate. The Company anticipates that the Agreement will result in an unforecasted charge to earnings of approximately $3.2 million in the Company's fiscal quarter ending February 25, 2005.