Harman International CEO Dinesh Paliwal will rack up more than US$50 million in compensation for his key role in the US audio giant’s merger with Samsung Electronics
, Korea Economic Daily reported on March 7.
Harman shareholders approved the US$8 billion merger deal, including the CEO’s pay, on Feb. 17. Related:
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The report said Paliwal will receive a compensation package of US$15 million for the next three years consisting of a base salary of US$1.26 million and performance-based incentives worth up to three times the base pay.
He will also be paid cash bonuses worth US$21.96 million for staying at the top position even after the merger, along with other long-term incentives worth US$21 million.
Even if he steps down from his post, the CEO will be allowed to take home the entire salary and incentives.
Harman’s other six board members, including Executive Vice President Herbert Parker and CFO Sandra Rowland, are reportedly receiving hefty salaries and bonuses from Samsung.
Samsung and Harman announced the mega deal in September. Following the shareholders’ approval, the two firms have started the integration work. All the members of the management and some 8,000 employees will remain.
Samsung’s home appliance chief and one of the three co-CEOs Yoon Boo-keun and Young Sohn, president and chief strategy officer who oversees the company’s chip business in the US, are also joining the Harman board.
By Kim Young-won (firstname.lastname@example.org