Oracle's pending deal to buy Cerner could mean million-dollar golden parachutes for the EHR giant's C-suite, as well as its former CEO.
Should the deal close, Cerner executives' golden parachutes will range from $10 million to almost $22 million, according to estimates in a Jan. 19 filing with the Securities and Exchange Commission.
The $28 billion deal is expected to close in 2022, pending shareholder and regulatory approval. The estimated payments assume the acquisition is approved and the executives are terminated without cause or leave for "good reason."
Here is a breakdown of the estimated golden parachutes for Cerner's top executives:
- Cerner CEO David Feinberg, MD, would receive $21.9 million, including $4.5 million in cash, $17.4 million in equity and more than $23,000 in benefits and perks. Dr. Feinberg will waive the payout if he leaves voluntarily, a Cerner spokesperson told Becker's.
- Brent Shafer served as Cerner's CEO from January 2018 until Dr. Feinberg took over the helm in October 2021. Mr. Shafer, who has stayed at Cerner as a senior adviser, would receive $20.6 million, including $4.1 million in cash, $16.5 million in equity and more than $16,000 in benefits and perks.
- Cerner CFO Mark Erceg would receive $11.3 million, including $3 million in cash, $8.2 million in equity and more than $37,000 in benefits and perks.
- Jerome Labat, Cerner's chief technology officer, would receive $10.6 million, including $2.3 million in cash, $8.2 million in equity and more than $18,000 in benefits and perks. Mr. Labat will waive the payout if he leaves voluntarily, a Cerner spokesperson told Becker's.