Cheney gets 'golden parachute' from Halliburton Co.

WASHINGTON (AP) -- The oil services company that Republican vice presidential candidate Dick Cheney ran the last five years has agreed to let him retire with a package worth an estimated at $20 million, a person familiar with the company's plan confirmed Saturday.

The board of the Dallas-based Halliburton Co. approved the arrangements July 25, the day Texas Gov. George W. Bush announced he had chosen Cheney as his running mate. Cheney had notified the board July 20 that he would probably be leaving to join the Republican ticket, said the source, who spoke on condition of anonymity.

Cheney, who served as the company's chairman and chief executive, has said that in leaving Halliburton, which paid him $1.3 million last year, he will "take a bath" financially.

The board's vote allowed Cheney, 59, to avoid a potentially costly aspect of his employment contract, which said he would forfeit some of his compensation if he retired before age 62 without the board's permission, according to The New York Times, which first reported the deal Saturday.

According to company financial reports, Cheney was entitled to at least $2.1 million in deferred compensation when he left, plus millions of dollars worth of the company's stock. However, the company had the ability to sweeten the package with the board's approval.

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

By letting Cheney treat his departure as early retirement, the directors allowed him to keep dlrs 10 million worth of stock and options he would have forfeited had he simply resigned, the company's public filings show. It was not clear whether the dlrs 10 million was part of the retirement package or in addition to it, the Times said.

Halliburton plans to make an announcement next week, the source said.

Cheney will officially retire Aug. 16. Cheney has said he would sell off his Halliburton stock if the Republican ticket wins in November.

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