March 27, 2006 11:35 AM PST

Iomega Heid's parachute opens

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Iomega on Monday named a new chief financial officer, Preston Romm, as the storage company seeks to turn itself around. Iomega also outlined its severance package to Werner Heid, the former chief executive who resigned last month amid pressure from the board to strengthen its business plan.

Heid is to receive up to $950,000 over a 12-month period, as well as $75,000 for three months of consulting services he will provide the company. The severance package also calls for reimbursing Heid up to $30,000 for use of an executive outplacement service.

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