The heads of Dow and DuPont will get a combined $80m (£56.5m) in “golden parachute” leaving bonuses following the tie up of the two companies. Dow and DuPont announced plans for a $130bn merger in December. Dow’s chief executive officer, Andrew Liveris, will get $52.8m in cash and stocks – a deal that includes his $40m retirement package. Edward Breen -who became DuPont’s chief executive in October – will receive $27.2m.
The new DowDupont company will be broken into three businesses focusing on agriculture, material sciences and specialty products over a two year period. The companies have said they hope to save $3bn over this period through cost cutting efforts. These types of leaving bonus have been given the name “golden parachute” to reflect the large payouts executives are given when a company is taken over and the executives are replaced. (BBC News, 2016)