Black & Decker Corp’s chief executive could receive a pay package worth more than $89 million as a result of the company’s merger with New Britain tool maker Stanley Works, according to a report by the Wall Street Journal.
The pay package for Nolan D. Archibald, who is Black & Decker’s biggest individual shareholder, owning roughly 1 percent of the Maryland-based company, includes a $45 million “cost synergy bonus,” that he would receive if the combined company meets expense-reduction targets, the Wall Street Journal reported.
A Chicago compensation consultant without ties to either company estimated the pay package’s value, which Archibald could receive over a three-year period, the Journal said.
Investors are expected to vote on the proposed merger Friday.
Stanley Works agreed to buy its rival Black & Decker Corp. for $4.5 billion in November, a move that will ultimately unite two of the industry’s most iconic brands and create the largest U.S. toolmaker.
Stanley shareholders will own about 50.5 percent of the combined company, which will be called Stanley Black & Decker. Black & Decker shareholders will hold a 49.5 percent stake after the all-stock deal is complete.
Black & Decker has 22,100 workers. Stanley Works has 18,200 workers. The combined company’s corporate headquarters will remain in Connecticut while its power tool division will remain headquartered in Maryland.
By staff and wire reports
