Atlanta Circuit City Stores, which is working to turn around its business, has approved cash awards designed to retain upper-level executives over the next few years, the company said in a federal filing on Wednesday.
A U.S. Securities and Exchange Commission filing said the company's board approved the retention awards of $1 million for executive VPs and $600,000 for senior VPs. The awards are effective as of Jan. 1, and vest over a three-year period.
In the filing, Circuit City said the awards were intended "to ensure the stability of the company's leadership team by providing an incentive" for the officers to stay.
Executives who will receive the awards include Bruce H. Besanko, CFO; George D. Clark Jr., executive VP for multi-channel sales; and general counsel Reginald D. Hedgebeth, according to the filing. Awards were also approved for workers at the VP and director levels.
Chairman and Chief Executive Philip Schoonover would not be participating in the retention plan, but would be able to receive long-term incentive awards along with other executives under a 2003 stock-incentive plan, the company said.