Seagate: Ex-CEO Watkins Gets $5 Million Severance Deal

Seagate (STX) disclosed in an SEC filing this afternoon that former CEO Bill Watkins has resigned as a director as of February 4. The company also said it has reached a separation agreement with Watkins that will pay him $5,000,008 in cash, consisting of 24 months of annual salary and 2x his target bonus for the company’s prior fiscal year. The cash is to be paid in two installments, half before February 26, and the rest within 10 business days of December 2, 2009. He’s also to be paid $29,944 to cover health insurance. Watkins also agreed to serve as a consultant to the company until December 2 on an as-needed basis at a $500 hourly rate. Under the agreement, Watkins agreed not to work for a Seagate competitor, solicit business from Seagate customers or seek to hire Seagate employees until after December 2. (link)