Talbots CEO Paid $1.2 Million to Offset Pension Hit
have been raised after a decision by the Talbots Inc. board to pay chief
executive Trudy Sullivan $1.2 million (six payments of $200,000 over
a six-month period) to compensate her for a cut in retirement benefits.
Ms. Sullivan saw her earning power take a hit after the company
froze its pension and executive retirement plans in a cost-cutting move.
to a Boston Business Journal report,
Talbots’ board said it approved the payment because it was “required
to provide a substantially comparable benefit” due to recent changes
that had affected Ms. Sullivan’s pension and supplemental executive retirement
many other retailers, has struggled during the recession and has taken
a number of steps to improve its position including cutting 695 jobs
(325 in the past two weeks), freezing benefits, closing underperforming
locations and finding a buyer for its J. Jill chain earlier this month.
who earned a base salary of $1 million in 2008 also received $4.7 million
from stock sales and additional compensation, according to a Boston
Question: Will the decision by Talbots to pay Trudy Sullivan $1.2 million
to compensate for lost retirement benefits create a credibility issue
for the CEO with rank and file workers at the company?
cuts worker benefits, pays CEO extra $1.2M – Boston
chief gets $1.2m boost – The Boston Globe