Cheney Retirement Package Worth $20M

Aug. 13, 2000 -- The oil services company that Dick Cheney ran for the last five years has given him a retirement package worth an estimated $20 million — but Republicans deny that the deal represents a special favor to their vice-presidential candidate.

The board of the Dallas-based Halliburton Co. approved the deal for Cheney on July 25, the day Texas Gov. George W. Bush announced he had chosen Cheney as his running mate. Cheney had previously notified theboard on July 20 that he would probably be leaving to join the GOPticket.

Cheney, who served as the company’s chairman and chiefexecutive, has said that in leaving Halliburton, which paid him$1.3 million last year, he will “take a bath” financially. He did not comment on the matter Saturday.

Bush Campaign Defends Deal

But Bush campaign spokeswoman Karen Hughes said Saturday that there was nothing unusual about the so-called “golden parachute,” saying it was “very much in keeping with compensation packages awarded to corporate executives in similar positions.”

Hughes added that the “American people should be reassured” that Cheney has been a successful businessman, and pointed out that neither man on the Democratic ticket — Vice President Al Gore and his running mate, Sen. Joseph Lieberman of Connecticut — has private-sector experience.

Bush, campaigning Saturday with Arizona Sen. John McCain in Everett, Washington, did not comment on the matter, but Gore’s campaign seized on the news tocriticize the GOP ticket.

“George W. Bush and Dick Cheney are big oil executives,”Chris Lehane, Gore’s spokesman, told ABCNEWS. “They have fought for the interests of big oil throughout their careers. Al Gore represents the people and the people’s interests.”

Bush and Cheney both have ties to the oil business — Bush ranoil drilling ventures in Texas and Cheney has been chief executiveat Halliburton, which provides technology and equipment to oilcompanies and major oil producing nations, since 1995.

Early Retirement Benefits

The board’s vote allowed Cheney, 59, to receive a generous payout even though many companies require executives to work until age 62 before they can get a full retirement package.

Cheney’s aides have said he was entitled to full retirement because he fulfilled his contract with Halliburton by working at the company for five years. But at the time Bush formally announced Cheney as his running mate, Cheney was a few weeks short of five years of service at the company.

Cheney has continued to work for Halliburton while campaigning and will formally resign on Aug. 16, just after reaching the five-year mark.

According to company financial reports, Cheney was entitled toat least $2.1 million in deferred compensation when he left, plusmillions of dollars worth of the company’s stock. However, thecompany had the ability to sweeten the package with the board’sapproval.

Cheney owns or has options on more than 1 million shares ofHalliburton stock. The value of his portfolio depends on thereduced price he pays for his options and the price of the stockwhen he sells it. Halliburton stock closed Friday at $51 a share,so a million shares are worth $51 million.

By letting Cheney treat his departure as early retirement, thedirectors allowed him to keep $10 million worth of stock andoptions he would have forfeited had he simply resigned, thecompany’s public filings show.

Package Not Unique

Cheney’s package is not unique for the oil industry, which tendsto reward retiring executives handsomely, especially when companiesdo well and executives have spent a long career at the firm.

Halliburton has thrived during Cheney’s five-year tenure. Butthe package is generous, say executive compensation specialists,considering his short time there.

According to a New York Times report published Saturday, one Halliburton board member said that Cheney received no specialtreatment.

The board did “whatever the contract calls for,” board memberW.R. Howell said. “There was nothing done at the boardlevel of an exceptional nature for Dick Cheney.”

Halliburton plans to make an announcement about the compensation package next week.

Cheney has said he would sell off his Halliburton stock if theRepublican ticket wins in November.

— ABCNEWS’ Terry Moran and John Cochran and the Associated Press contributed to this report.