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Executives at the Borders Group are to receive financial bonuses as part of a board-approved scheme to retain the retailer's top brass while it attempts to regain financial stability, http://www.publishersweekly.com/article/453315-Borders_Execs_Eligible_fo... target="_blank">Publishers Weekly reports.
As part of the plan, salaries for the five executive covered in the plan, which include interim chief executive Michael Edwards, will remain at last year's levels.
But Edwards will receive a bonus of nearly $150,000 (£98,000) on 1st November, if he remains at the company until the end of September. He will receive the same amount again on 15th April 2011 if "still-to-be determined financial targets are hit", PW said.
Chief financial officer Mark Bierley will pick up $130,978 in each of the two bonus periods; general counsel Thomas Carney will net $75,430 each time; chief investment officer David Scott Laverty has been alloted $70,671 in both periods; and senior vice president of human resources Shereen Solaiman has been earmarked $65,277. The board's compensation committee also passed another compensation arrangement for Bierley that will make him eligible to receive a cash payment of $150,000 if he is employed by Borders until 1st June, 2011.
By incentivising the management team to stay on, the programme is intended to give them time to develop a business plan for the second half of 2010 with "achievable" bottom-line targets, which the board will consider when setting incentive goals for the second half of the year.