Borders bonus plan for executives gets OK
New York City — Borders Group won approval of an amended executive bonus plan after a judge sought changes to resolve objections from an arm of the U.S. government that oversees bankruptcies, Bloomberg reported.
Judge Martin Glenn of U.S. Bankruptcy Court in Manhattan said the amended bonus packages, which tie the $6.6 million in payments closer to the financial performance of Borders, were needed so Borders could "maintain its experienced work force."
The revised plan is “is in the best interests of the debtors, their estates, and creditors,” Glenn said in the order.
Ten participants in the bonus plan will be paid a bonus of 40% to 125% of their base salary if the company achieves certain benchmarks, according to court papers, the report said,
The low range of bonuses will be paid if Borders negotiates at least $10 million in annual rent reductions on its store leases, and senior management will get 125% of their base salary if they recover more than $95 million for unsecured creditors, Bloomberg reported.
Borders filed for bankruptcy in February 2011.
Abercrombie & Fitch’s CEO compensation package down 38%
New York City — The chairman and CEO of Abercrombie & Fitch Co. received a pay package worth $22.5 million, down 38% from last year, mostly because of a reduction in option awards, according to an analysis by The Associated Press.
Jeffries, 66, received a base salary of $1.5 million and a performance-based bonus of $2.3 million, according to a filing with the Securities and Exchange Commission.
He received option awards worth $14.1 million on the date they were granted, down 58% from the prior year.
He also received other compensation worth $4.6 million, including a previously disclosed $4 million payment for eliminating unlimited personal use of the company aircraft. If Jeffries terminates his contract without good reason, he’ll have to repay part of the $4 million.
Best Buy CEO’s pay package falls 51%
New York City — The CEO of Best Buy received a pay package worth about $5 million in the most recent fiscal year, half what he got the year before, according to a document the company filed Friday with the Securities and Exchange Commission, the Associated Press said.
Brian Dunn, 50, received a base salary of $1 million and a performance-based bonus of $746,667, down 75% from his performance based bonus the year before. Dunn received option awards valued at $3.2 million when they were granted, down 48%.
The company said its worse-than-expected performance led to lower performance-based bonuses for top executives, including Dunn.
Dunn received other compensation worth $15,168, including contributions to his retirement plan, insurance premiums and a tax services reimbursement.
The Associated Press formula calculates an executive’s total compensation during the last fiscal year by adding salary, bonuses, perks, above-market interest the company pays on deferred compensation and the estimated value of stock and stock options awarded during the year. The AP formula does not count changes in the present value of pension benefits. That makes the AP total slightly different in most cases from the total reported by companies to the Securities and Exchange Commission.