Take-Two's Eibeler Patted on Back with $2.5M Severance

Amongst a flurry of documents filed with the SEC following the Take-Two shakeup is a separation agreement declaring the severance package being granted to ousted CEO Paul Eibeler. The publisher's filing, an excerpt of which is reprinted here, details a long list of benefits that begins with a payment of $2,475,000, an amount equivalent to "1.5 times the total of the ExecutiveÂ’s current annual base salary and target bonus for 2007." Effective this week, Eibeler--whose removal followed shareholders' dissatisfaction with his management performance--is also serving as a consultant for Take-Two at a salary of $50,000 per month, equivalent to a $600,000 annual salary. He will retain that position until October 4, 2007 at the earliest. In his paid capacity as a consultant, Eibeler "will not have any responsibility in connection with the active management of the Company." Presumably to facilitate the ol' consultant commute, Eibeler will receive a monthly car allowance of $799.99 during the period of his consultancy. For his part, Eibeler agrees not to engage in lawsuits or any other legal proceedings against Take-Two, and he waives his right to trial by jury in any legal matter regarding Take-Two in which he becomes embroiled. Those concerned by the relative extravagance of Eibeler's compensation will be relieved to know that the former executive and current consultant was, according to the terms of the severance, required to return his company cell phones, Blackberries, pagers, PDAs, computers, Rolodexes, and bank account numbers. (Thanks Kotaku) Meanwhile, newly installed Take-Two chairman Strauss Zelnick recently stated that the publisher is looking at various ways of reducing expenditures, including potential downsizing.