The former chief executive of Waddell & Reed will leave the mutual fund firm with more than $14 million in stock, cash and benefits, a Kansas City Star report reveals through documents it obtained from a Securities and Exchange Commission filing.
Keith Tucker, who resigned last week as Waddell & Reed's chairman and CEO, has been signed to an 8-year consulting contract, whereby the firm was scheduled to pay him $6 million in cash, half of it sometime before today. Tucker, 60, will earn the remainder of the money at the scale of $1,690 an hour. He's also eligible to receive the $2.6 million in his retirement account and retains the $3.86 million worth of company stock that is not yet vested.
Tucker, whose departure is characterized by the firm as an "early retirement," will also receive office support and staff expenses of up to $100,000 annually, unused vacation pay, the portion of his 2005 salary earned through May 25 and $470,137 of his cash incentive for this year, the Kansas City Star reports. Medical benefits will also be provided to Tucker and his wife and he'll still be eligible for the firm's stock option plan this August.
As part of the deal, Tucker must fulfill his consulting requirements and may not work for a competitor in the mutual fund industry or recruit current Waddell & Reed employees to competitors. Tucker and Waddell & Reed also agreed to refrain from making disparaging or injurious comments about one another.
Tucker's resignation comes on the heels of a $32 million regulatory settlement over variable annuity exchanges it recommended to customers three years ago.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.