Albany, N.Y. Trans World Entertainment Corp. CEO Robert J. Higgins will be paid a $1 million per year base salary as part of a new, three-year contract with the company.
Higgins’ new contract takes effect Dec. 31, according to a filing with the U.S. Securities and Exchange Commission.
Higgins was paid a base salary of $1.25 million in 2007, as well as in 2008.
The new agreement replaces a five-year contract that expired April 30.
Under the new contract Higgins, who founded the Albany, N.Y.-based company in 1972, will be eligible for annual bonuses of up to 200%of his base salary and be reimbursed for travel and other expenses. He will also be awarded restricted stock units worth $1.1 million.
The new base salary comes at a time when the specialty retailer is trying to stem the tide of falling revenue as more consumers rely on computer downloading and big-box stores to buy music. Trans World is also faced with a weak economy that has hurt sales for many retailers during the important Christmas shopping season.
Trans World owns the f.y.e. (For Your Entertainment) retail stores.