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1Fix the driver behind crashes, sound loss and screen glitches2Clear out junk files and repair common Windows errors3Scan for outdated or missing drivers - takes under a minuteAgere Systems disclosed a retirement separation agreement with former CEO John T. Dickson that listed $6,174,115 in payments and pension benefits. The figure is the arithmetic total of five amounts in the company’s November 10, 2005 Form 8-K; it excludes stock options, for which the filing did not state a dollar value.
What Agere disclosed
Agere said it entered into a separation agreement with Dickson on November 4, 2005, relating to his retirement. The company reported the agreement in a Form 8-K filed November 10, 2005. The agreement described several distinct benefits, not one single severance payment. (Agere Systems Inc. Form 8-K)
How the disclosed amounts add up
| Component | Disclosed amount | Basis or condition |
|---|---|---|
| Severance | $3,600,000 | Equal to two years of salary and target bonus; conditioned on Dickson signing a waiver and release. |
| Transition assistance | $133,333 | Equal to two months of salary, in return for help with business and customer transition issues. |
| Accrued supplemental pension benefit | $1,504,899 | Payable as a lump sum. |
| Additional supplemental pension benefit | $682,612 | Represents the additional benefit he would have accrued had he stayed employed for two more years and become eligible for an early retirement benefit. |
| Qualified pension benefit | $253,271 | Payable as a lump sum. |
| Total of the five listed amounts | $6,174,115 | Calculated by adding the five disclosed amounts; Agere did not separately report this total. |
The $3.6 million severance was the largest single listed amount. The other figures were transition assistance and pension benefits, so describing the entire $6.17 million as severance would conflate separate parts of the agreement.
What the agreement said about options and the fiscal 2005 bonus
Options exercisable on October 26, 2005, remained exercisable for 90 days. Options that were not exercisable on that date terminated. Agere did not assign a dollar value to the options in this disclosure, so they are not included in the $6,174,115 calculation.
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Dickson would not receive a bonus for Agere’s fiscal 2005 year.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What the headline amount means
The stated “more than $4 million” threshold is exceeded by the five itemized payment and pension amounts. The $6,174,115 total is a calculation from the filing, not a separate figure announced by Agere, and it does not value the stock options. The company’s filing is the source for the reported agreement and its terms.
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