Dell Inc. said it would pay ousted former Chief Executive Kevin Rollins $48.5 million in cash related to expired stock options.

Dell's board also agreed to make allowances for some current and former employees who hold in-the-money options that expire while they cannot be exercised because Dell is late filing its fiscal 2007 report due to accounting irregularities.

After his appointment as a senior adviser by private equity firm TPG Capital last week, Rollins found out he will receive the money from his former employer on or before 45 days after Dell files its annual report with securities regulators.

Rollins, after being replaced in January by founder and Chairman Michael Dell, officially resigned effective May 4, Dell said in a filing with the U.S. Securities and Exchange Commission. Under the terms of his stock options agreements, 7.37 million unexercised options that were vested at the time of his retirement expired 90 days after his resignation date.

By: DocMemory
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