This story is great….and the headline certainly sounds great, but I don’t think it will  signal a new era in the way executives look at compensation…but probably not.  Nolan D. Archibald was head of Black & Decker for 24 years. He turned the company around in the 1980’s by cutting costs, improving the quality of its products and increasing sales. This week the company merged with Stanley Works. John Lundgren will be names as CEO of the combined company. John was the CEO of Stanley. Nolan was entitled to open up his $20.5 million dollar golden parachute but he declined and let it float away.

Even though Archibald is stepping down, he will remain as executive chairman of the board of directors. Although not being involved in day to day decisions, he will still be involved with the company…and he will paid handsomely for it.  He is expected to earn a salary of $1.5 million a year plus a bonus package of up to $1.9 million. This is not including stock options…and a “cost synergy bonus” could pay him up to $45 million. His pension is supposedly worth $34 to $35 million, along with an additional $15.7 million in a supplemental retirement savings plan. And he has extensive stock holdings in Black & Decker.

Obviously since the Obama bailouts companies are more sensitive about executive compensation buyouts.  The issue is a real hot button for boards, so who knows if it was his decision, the board’s decision or whether it was a mutual decision. The story comes across as considerate gesture to company finance and stock holder ideals, but at the end of the day – it would not have even mattered if he has strapped this parachute on considering what he is and will be paid.