At least one company doesn't reward a CEO for poor stock performance by giving away a fortune upon his departure. According to Reuters (via Yahoo), departing Bristol-Myers Squibb (NYSE:BMY) CEO Peter Dolan may get around $10 million as his exit package. Even though it took a federal investigation to get rid of him, the board of this company at least behaved responsibly.
I own a small (1/4 position) in BMY. This news story made me want to take another look at my position. I always believe that all partial positions should always be up for an increase or elimination after any news event. At $24.36 has a big dividend yield of 4.6%. According to First Call earning estimates, the 2007 p/e is a steep 20.0 and 2006 should come in at 24.00. Further responsible action by the board may put the board of this former dividend aristocrat at risk. I think I'll keep my small position and wait for the dividend cut (and cause a pullback) or some real corporate restructuring to make me think the company will become something other than a low growth cash cow.
I'll hold BMY for now, and maybe even lighten up further. But I will remain ready to buy on a big dip or positive restructuring news.
Bristol-Myers like so many corporations now has an extensive website dedicated to sustainability.
BMY 1-yr chart: