Broadcom Corp. Chief Executive Officer Scott McGregor could get at least $67.3 million if he’s terminated after Avago Technologies Ltd. acquires the company.
The payout would include $9.17 million in cash severance and $66,879 in benefit payments, according to Broadcom’s latest proxy statement. He also could receive more than 1 million shares valued at $58.1 million at the offer price of $54.50, according to data compiled by Bloomberg.
Avago’s $37 billion purchase of the wireless chipmaker would be the biggest ever in the semiconductor industry. The deal is about twice the size of NXP Semiconductors NV’s pending purchase of Freescale Semiconductor Ltd. Hock Tan, Avago’s CEO, will run the combined company, according to a statement today from both firms.
McGregor, 59, would receive the compensation if he’s terminated without cause or resigns for reasons including a change in position that reduces his responsibilities, or a cut in his base salary following Singapore-based Avago’s acquisition.
Karen Kahn, a spokeswoman for Broadcom, declined to comment.
McGregor was awarded $20.2 million in 2014, according to the Bloomberg Pay Index, a daily ranking of the highest-paid U.S. executives. He joined Irvine, California-based Broadcom in 2005 after running Philips Semiconductors for three years.
Broadcom is the biggest maker of WiFi chips that provide short-range connections for mobile devices. The company is shuttering its unit that makes modem chips for mobile phones, which failed to gain significant market share from Qualcomm Inc.