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SAN FRANCISCO (Dow Jones) -- At a time when economic uncertainty and corporate performance have put executive pay under increased public scrutiny, Dell Inc. on Friday found itself breaking out an old-fashioned, eight-figure severance package for two of its departing executives.

The bulk of the severance deals -- $10 million in cash -- will be paid to Mike Cannon, who is leaving Dell after less than two years as president of the company's global operations. Another Dell executive, outgoing chief marketing officer Mark Jarvis, will receive a departure package worth $1.25 million.

Dell (DELL) made the severance deals public in a filing with the Securities and Exchange Commission. The payment-package details come less than two weeks after Dell said Cannon and Jarvis would leave the company, effective Jan. 31.

The payments, while likely negotiated before both men joined Dell, are not likely to win any favor with Dell shareholders, who have seen the stock's value plunge 55% since the start of 2008. On Friday, Dell shares fell 27 cents, or 2.4%, to $11.01.

"I would bet that from a legal standpoint, this is something Dell had to pay," said Shaw Wu, an analyst who covers Dell at Kaufman Bros. "These were very senior executives, and they typically have these deals negotiated into their employment contracts."

According to the filing, Cannon will receive a $5 million payout on or before Feb. 20, and two payments of $2.5 million each, due in April and July. Cannon will also be kept on as a Dell consultant and receive $1.25 million within 15 days of Jan. 31, 2010, and Dell will continue to foot the bill for Cannon's home-security system until Feb. 1, 2011.

Jarvis will receive $625,000, the equivalent of one year's pay, plus another $625,000 in bonuses.

The payouts also come during a growing trend among corporate executives to either eliminate bonuses or take pay cuts during the current economic downturn.

On Wednesday, storage-technology company EMC Corp. (EMC) said its CEO, Joe Tucci, and other senior officials, would take pay cuts and that the company was suspending pay raises for the rest of this year. EMC also said it would cut 2,400 jobs as part of its restructuring plan.

At Dell, both Cannon and Jarvis, whose impending departures were announced in late December, were recruited in 2007 by Chief Executive Michael Dell after he retook control of the faltering PC maker.

The appointment of Cannon was especially seen as one of Dell's boldest steps to realign its business operations after losing market share and falling behind Hewlett-Packard (HPQ) several years ago. Cannon was a former CEO at both electronics contract manufacturer Solectron and hard-disk drive maker Maxtor, prior to that company being acquired by Seagate Technology (STX).

"It's disappointing," said Wu. "Even with Michael Dell returning to the company, over the last couple of years, Dell hasn't performed well."

Cannon will be succeeded by Jeff Clarke, now head of Dell's business client product group. Clarke will also become vice chairman of global operations.

Jarvis, who will also remain a consultant to Dell, will be succeeded by Erin Nelson, formerly vice president of marketing, Dell Europe, Middle East and Africa.

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