E*Trade Financial Corp. has agreed to pay former CEO Mitchell H. Caplan severance pay of $10.9 million, which is two times the sum of his base salary and bonus during 2006.
In addition, Caplan, who has also chosen to resign from E*Trade’s board, will receive two years of medical, life, and disability insurance coverage. What’s more, he will be entitled to reimbursement of certain legal fees.
“E*Trade’s board and management team are acting swiftly to establish and execute a turnaround plan designed to unlock the company’s value,” said Chairman Donald H. Layton in a statement. “E*Trade’s board of directors remains confident in the strength of the core franchise and the loyalty of its customer base.”
Caplan, who stepped down as CEO on Nov. 29, was replaced by E*Trade president and COO R. Jarett Lilian, who is acting CEO.