Rockwell Collins, Inc. (NYSE:COL) top executive members are expected to receive a change-in-control package amounting to over $30 million if the shareholders will approve the deal to take over the United Technologies Corp. The shareholders from both firms will cast their votes on January 11, 2018, on a megadeal.
The company unveiled the ‘golden parachutes’ packages for Kelly Ortberg and other four other executives as a requirement to be fulfilled in their respective employment agreements. The top executives would receive the money whether they choose to stay with the firm or quit. Ortberg would obtain $8.18 million in addition to the bonus worth $270,444. He also qualifies for an equity stake of $21.1 million, pension payment of $612,000, and other bonuses worth $98,501.
However, the ‘golden parachute’ would not include any amount payable after the termination of service when the deal is already completed under certain terms and conditions. Rockwell has promised to pay the United Technologies a sum of $695 million compensation fee if Rockwell fails to complete the transaction.
Both the two companies are planning to integrate their Aerospace Systems divisions to build the Collins Aerospace Systems and Ortberg will extend his service to the new organization as the CEO. Other Rockwell’s top executives would obtain their lucrative ‘golden parachutes namely:
- Patrick Aleen, the Chief Financial Officer – $8.88 million.
- Kent Statler, Chief Operating Officer, Commercial Systems – $8.22 million
- Philip Jasper, Chief Operating Officer, Government Systems – $ 6.06 million
- Robert Perna, General Counsel and Secretary – $4.65 million
According to the United Technologies, it might take them up to March 31 before concluding on where to place the headquarters of the new Collins Aerospace Systems business unit. However, the new changes in the two companies come with a lot of uncertainties especially for the local employees who fear to lose their current jobs or relocation to regions away from their families.