Directorate Change
21 März 2003 - 3:38PM
UK Regulatory
EDS Releases Details of Former Chairman and CEO Dick Brown's Severance
PLANO, Texas, March 21 -- In connection with the
management change announced yesterday, EDS (NYSE: EDS) today reported the
financial impact of its obligations under former Chairman and CEO Dick Brown's
employment agreement. The agreement, entered into in December 1998, was part
of attracting Mr. Brown to EDS from Cable and Wireless plc.
The principal components of the severance obligation are as follows:
-- $12.4 million in a cash payment.
-- Vesting of 344,000 previously awarded deferred stock units valued at
$5.4 million, based on yesterday's closing price of $15.77.
-- Retirement benefits with a present value of $19.6 million, to be paid
in monthly installments. These benefits were scheduled to vest in
December 2003.
-- Continuation of certain other benefits and acceleration of unvested
stock options.
As a result of the severance obligation, EDS will record a one-time
compensation expense of approximately $.06 per share in the first quarter of
2003.
About EDS
EDS, the leading global services company, provides strategy,
implementation and hosting for clients managing the business and technology
complexities of the digital economy. EDS brings together the world's best
technologies to address critical client business imperatives. It helps
clients eliminate boundaries, collaborate in new ways, establish their
customers' trust and continuously seek improvement. EDS, with its management-
consulting subsidiary, A.T. Kearney, serves the world's leading companies and
governments in 60 countries. EDS reported revenues of $21.5 billion in 2002.
The company's stock is traded on the New York Stock Exchange and the London
Stock Exchange. Learn more at www.eds.com .
CONTACT:
Jeff Baum
972-797-9495
jeffrey.baum@eds.com
SOURCE Electronic Data Systems Corporation
-0- 03/21/2003
/CONTACT: Jeff Baum of Electronic Data Systems Corporation,
+1-972-797-9495, or jeffrey.baum@eds.com /
/FCMN Contact: /
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(EDS)
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