Black & Decker CEO Will Not Receive Severance

CHICAGO (AP) — Black & Decker Corp. Chief Executive Nolan D. Archibald will not receive a $20.5 million severance package following Stanley Works' purchase of the tool maker but may receive a bonus of $45 million if cost savings goals are met in three years.

Archibald and the board of directors agreed it was appropriate he waive his right to the severance package, given salary and compensation in his new role, said Roger Young, vice president of investor and media relations for Black and Decker.

"It was one part of the negotiation. There was a lot of negotiating that went on," Young said.

Archibald, who also serves as chairman and president, is technically being terminated from his job because of the acquisition. Stanley CEO John Lundgren will be CEO of the new company, while Archibald will serve as executive chairman of the new company, Stanley Black & Decker, for three years.

Archibald, who took the helm of the company in 1986, will now receive an annual base salary of $1.5 million, up to $1.9 million in annual bonuses in his new pay package and stock options and awards. Provided Archibald meets certain goals, he may receive a bonus of up to $45 million on the third anniversary of the purchase's completion if costs are cut by at least $350 million.