Talbots cuts worker benefits, pays CEO Sullivan extra $1.2M - Triangle Business Journal:

http://aott.org/unit%20report.htm
Roughly three months after Talbots (NYSE: TLB) cut some 370 workere and announced a sweeping plan to suspend its quarterlg dividend and freeze its pension plan, the Hingham, Mass.-based company said it will pay $1.2 millio to its CEO and president, Truduy Sullivan, to offset the recent reductions in her retirement The move comes on the heels of another disclosure by the compant – that it would boost by 23 perceng the annual salary of its senior real estate and legalo executive, Richard O’Connell.
The increase brought O’Connell’ annual salary to He also received anextra 50,009 shares of restricted stock and an option to buy 74,000 sharesd of Talbots stock, effective Apri 30. For the fiscal year ended Jan. 31, Talbots booke d $1.5 billion in sales and a net lossof $560.7 million. The retail chain, which sellsz women's apparel, shoes and accessories, has six locations in the Raleigh-Durhamk area. In a regulatory filint with the , Talbots said it was obligate tooffset Sullivan’s loss in benefits, per her employmenyt contract signed in 2007. It said the $1.
2 millionj payment will be paid out in six equalo installments over the next six The total amount was determinedby Talbots’ compensatiojn committee and an outside consultant, the company said. Talbotsx said it “is required to provides a substantiallycomparable benefit” due to the recent changea affecting Sullivan’s tax-qualified defined benefit pensionj plan and its defined benefig supplemental executive retirement plan. Sullivan’s compensationh package totaled $3.35 million in according to Talbotsregulatory filings.
That payout included a $1 milliobn base salary; roughly $931,000 in optiomn awards; around $868,900 in value realized from past option and $314,000 in “other” compensation that includesd $50,000 in financial consulting services and a $98,009 housing allowance.