$14M Windfall for Tucker, Waddell & Reed Ex-CEO
June 6, 2005
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 two weeks ago as Waddell & Reed's chairman and CEO, signed an eight-year consulting contract, whereby the firm was scheduled to pay him $6 million in cash, half of it due last Wednesday. Although the firm characterized Tucker's resignation as "early retirement," it comes on the heels of a $32 million regulatory settlement over variable annuity exchanges it recommended to customers three years ago.
Tucker is also eligible to receive the $2.6 million in his retirement account and retains the $3.86 million worth of company stock not yet vested.
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