Former Take-Two CEO Eibeler’s separation agreement

This may be one of the last few things that you will be hearing about Paul Eibeler after he was ousted as CEO of Take-Two Interactive. And we’re telling you, it is highly possible that Eibeler is not at all saddened by the take over.

As you all now, Take-Two is now in the hands of Chairman Strauss Zelnick and acting CEO Ben Feder, and they are looking to conserve resources by laying off some people. Anyway, it is apparent that Eibeler’s contract with Take-Two has a separation agreement. According to that clause, he will get the following once he gets fired:

• US$ 2,475,000 in severance pay
• Immediate vesting of stock options and shares which includes 100,000 shares of restricted stock, options to purchase 450,000 shares at US$ 21.28 and options to purchase 75,000 shares at US$ 19.89
• Accrued but unpaid base salary and vacation and unpaid expenses through his last day at the company
• A job as a consultant for the company through October 4, 2007 paying US$ 50,000 a month
• No change in his health care benefits through his consultancy
• An US$ 800 a month car allowance through his consultancy

Now that, friends, is a good way to get fired. We’re not so keen on the money involved here as it is almost a given with every separation agreement. What’s curious is the consultant position that he will be occupying until October 4. We wonder what Eibeler’s thoughts are on the new management especially now that Take-Two is shaping up.

This may be one of the last few things that you will be hearing about Paul Eibeler after he was ousted as CEO of Take-Two Interactive. And we’re telling you, it is highly possible that Eibeler is not at all saddened by the take over.

As you all now, Take-Two is now in the hands of Chairman Strauss Zelnick and acting CEO Ben Feder, and they are looking to conserve resources by laying off some people. Anyway, it is apparent that Eibeler’s contract with Take-Two has a separation agreement. According to that clause, he will get the following once he gets fired:

• US$ 2,475,000 in severance pay
• Immediate vesting of stock options and shares which includes 100,000 shares of restricted stock, options to purchase 450,000 shares at US$ 21.28 and options to purchase 75,000 shares at US$ 19.89
• Accrued but unpaid base salary and vacation and unpaid expenses through his last day at the company
• A job as a consultant for the company through October 4, 2007 paying US$ 50,000 a month
• No change in his health care benefits through his consultancy
• An US$ 800 a month car allowance through his consultancy

Now that, friends, is a good way to get fired. We’re not so keen on the money involved here as it is almost a given with every separation agreement. What’s curious is the consultant position that he will be occupying until October 4. We wonder what Eibeler’s thoughts are on the new management especially now that Take-Two is shaping up.