Reuters reports that as Julian Day ascends to the CEO office at Kmart Corp., he gets a $1 million annual salary plus a $1 million bonus when the company emerges from bankruptcy protection. He also gets a bonus that could equal four times his salary depending on how the company achieves specific performance targets.
In addition, Kmart’s just-departed CEO and chairman, James Adamson, will receive $3.6 million when the company gets out of bankruptcy, as agreed in his original contract.
Day's employment contract, which runs through Jan. 31, 2006, includes the use of a company jet and a 10-year option for 1.5 percent of the equity in the reorganized company.
In addition, Kmart’s just-departed CEO and chairman, James Adamson, will receive $3.6 million when the company gets out of bankruptcy, as agreed in his original contract.
Day's employment contract, which runs through Jan. 31, 2006, includes the use of a company jet and a 10-year option for 1.5 percent of the equity in the reorganized company.
- KC's View:
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Seems to us that these guys just don’t learn. We don’t begrudge anybody a big salary, but exactly what message is being sent to the folks in the field who are dealing with customers, antiquated facilities, and concerns that the whole place could go belly-up at any time.
Clearly, this is a decision reached by the old board of directors, which is going to be replaced by a new board once the company emerges from bankruptcy. Old dog, old tricks, old story.
