High-flier's package adds up to rich pickings

DETAILS of Kozlowski's astonishing remuneration arrangements - lavish and complex even by the exalted standards of corporate America - are laid out in Securities and Exchange Commission filings lodged in January.

In the year to end-September 2001, he received a basic salary of $1.6m (£1.1m), a $4m bonus, 'compensation' of $219,543 representing interest on 'deferred' compensation and 'all other compensation' of $4.3m, representing contributions into his pension scheme.

He was also issued 'restricted' shares then worth $30.4m and options worth $1.4m. The 'present value' of his pension scheme entitles Kozlowski to a monthly income of $343,112 or more than $4.1m a year from his retirement age of 65. He is also entitled to do 30 days a year consultancy work for the company for the rest of his life. The report from the compensation committee says it believes the package 'is in the best interest of shareholders'.

However, his entitlement to a $100m pay-off is believed to have been rendered void by his resignation. The company is believed to be preparing a new compensation package.

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