Dell said on Tuesday it will pay $5 million in severance to former Chief Executive Kevin Rollins after he was replaced by founder Michael Dell in January.
Dell, the world's second-largest personal computer maker, will make the payments in five $1 million installments from May 4, 2007 to April 15, 2008, according to a Dell filing on Tuesday with the U.S. Securities and Exchange Commission.
Rollins left Dell on Jan. 31 after a string of disappointing financial results and amid investigations into the company's accounting. Founder and Chairman Michael Dell, 41, retook the CEO job that Rollins had held since 2004.
Rollins remains employed as an adviser to the company through May 4 and will receive his current annual salary and benefits until the end of his employment, Dell said.