Talbots ups pay for real estate

Boston The Talbots has increased the annual salary and severance compensation for its senior real estate and legal executive, according to the Boston Business Journal on Thursday.

In a regulatory filing, Talbots said its board’s compensation committee approved amendments to provide executive VP Richard O’Connell a severance agreement without an expiration date, and the company has agreed to increase his annual salary 23% to $500,000.

O’Connell’s responsibilities include real estate, legal and store planning and design operations; he received $1.24 million in total compensation in 2008.

But elsewhere in the organization, cuts are being made. In March, Talbots said it would suspend its quarterly dividend, freeze its pension plan and borrow $200 million from its majority shareholder to offset its financial struggles.

A month earlier, the company announced it would cut $150 million in expenses, including 370 job cuts and the closure of 20 stores.

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