Unisys Paid Carlucci $95,083 in Severing Ties

Defense Secretary Frank C. Carlucci received $95,083 in deferred compensation in March when he severed his relations with Unisys Corp., one of the contractors involved in the investigation of defense procurement practices, the Pentagon said Friday.

Carlucci also had Unisys transfer to the Travelers Corp. a $14,300 annual pension that he will begin receiving in November, 1990.

Pentagon spokesman Fred Hoffman said that through those actions, Carlucci “severed his contacts with (Unisys) entirely.”

Carlucci was a director of Sperry Corp. from 1984 to 1986 and a director of the successor Unisys company when it merged with Burroughs Corp. until January, 1987, when he became national security adviser to President Reagan.

The Pentagon has said that Carlucci was unaware of the two-year fraud investigation of Unisys and other defense contractors until June 13, the day before dozens of offices of contractors, Pentagon officials and private consultants were searched nationwide.

Carlucci’s latest May 16 Pentagon financial disclosure statement since taking over as defense secretary in November only notes that Carlucci had decided to “cash out” his additional deferred compensation from Unisys. Hoffman said this was a direct payment of $95,083.

Hoffman said Unisys paid Carlucci’s accumulated pension money to Travelers to be paid in the form of a retirement annuity, the Pentagon’s financial disclosure statement showed.

The statement also shows Carlucci had received less than $50,000 in Quaker Oats stock as compensation for retirement benefits he would have received for serving on the company’s board of directors.

The stock was being sold “to sever all relationships with Quaker Oats,” the statement said.