Bonus Plans

5:35 PM -- If McData's John Kelley pockets the $1.125 million retention bonus offered him after the Brocade deal closes, it certainly won't be a new record for what a storage company CEO has been paid upon losing his job. It's actually a measly sum compared to other recent payouts. (See Kelley Gets 1.1M Reasons to Stay.)

Consider these:

Carly Fiorina

Package: Hewlett-Packard gave her $21 million in stock after the board booted her last year. (See Ex-CEOs Cash In.)

Extra bonus: Free publicity the same board gave her by embroiling itself in a spying scandal just as her book hit the shelves. (See Hurd Apologizes, Probe 'Disturbing' and HP Dumps Dunn, Appoints Hurd.)

Pat Martin Package: His StorageTek contract called for a $6 million payout after he sold off the company to Sun. (See We Have a New Winner.)
Extra bonus: He didn't have to go to work at Sun to collect it.

Tom Hudson

Package: Former CNT boss received $3 million when McData bought his company at less than half the price that Brocade will pay for McData. (See CNT CEO Eyes $3M Payout.)

Extra bonus: He didn't have to work at McData to collect it.

Kelley still has more door prizes awaiting him, though. His retention package won't affect his severance, so he can make up some of the gap between himself and the others. And he will likely make out better than his longtime rival at Brocade, Greg Reyes.

Brocade promised Reyes his $910,000 annual salary in exchange for consulting work after he stepped down in January 2005 over what turned out to be a major scandal involving improper accounting for stock options. Brocade has since stopped payment on that deal, and Reyes faces federal criminal charges. So instead of a retention plan, Reyes could end up with a detention plan. (See Reyes Charged With Fraud.)Dave Raffo, News Editor, Byte and Switch