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Should Nakheel pay its ex-CEO his dues?
He deserves his day in court, for sure. But does the former Nakheel CEO deserve his benefits and pay after given the company was pretty much sinking in the red?
December 20, 2011 12:59 by kippreport
Does Chris O’Donnell deserve the $3.7 million in pay and benefits he is claiming from today at the Dubai World Tribunal?
The former Nakheel CEO’s claims his popularity among the company’s board of directors plummeted almost as quickly as the property sector nosedived. O’Donnell claimed he submitted a proposal for a new contract at a “substantially reduced salary” but that Nakheel Chairman Ali Lootah had informed him the board decided not to renew his contract, according to reports on The National. He left the company in June, the same month as the ill-fated meeting. It was his fourth year in service.
Six months after leaving Nakheel, the former CEO is now back for a second bout with the property developer claiming he is owed two installments of $1.5 million as part of a “long-term incentive” plan as per his contract. The rest of the money is for claims in interest and benefits the Australian citizen says Nakheel owes him and changes in the exchange rate between the dirham and the Australian dollar.
As it has long been out of the Dubai World umbrella, Nakheel says the Tribunal has no bearing on the case. It has also pointed a finger back at him for some incorrect procedures in management. Some people may call this stalling, others may call it just another legal move.
So what do you think? Should O’Donnell be paid the whole sum he is asking for? Or at least some of it? Knowing that the company did not only grow but plummet so readily under his watch must be considered here, but with the understanding that the property landscape in the UAE was shaken to the core during his tenure.
More importantly, this again sheds light to the value of incentives C-suite executives and especially CEOs get from their package. This kind of top-heavy rewards programme works to only a certain point. At the end of the day, are we all just really driven by money?
Whether or not O’Donnel gets his money seems moot now. But the question for you to answer is…does he deserve it?