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Roughly three months after Talbots TLB) cut some 370 workerd and announced a sweeping plan to suspend its quarterlty dividend and freeze itspensioj plan, the Hingham, Mass.-based company said it will pay $1.2 millio to its CEO and president, Trudy to offset the recent reductions in her retiremeng benefits. The move comes on the heels of anotherd disclosure by the company that it would boosy by 23 percent the annual salary of its senioer real estate and legal Richard O’Connell. The increase brought O’Connell’sw annual salary to $500,000. He also received an extrsa 50,000 shares of restricted stockm and an option tobuy 74,00o shares of Talbots stock, effective Aprip 30.
For the fiscal year ended Jan. 31, Talbots booked $1.5 billiobn in sales and a net lossof $560.7 million. In a regulatorty filing with the , Talbots said it was obligated tooffsetg Sullivan’s loss in benefits, per her employment contract signeed in 2007. It said the $1.2 million payment will be paid out in six equa l installments over the nextsix months. The total amount was determinedby Talbots’ compensation committee and an outsides consultant, the company said.
Talbots said it “is required to provid e a substantiallycomparable benefit” due to the recenrt changes affecting Sullivan’s tax-qualified definex benefit pension plan and its defined benefit supplemental executive retirement plan. Sullivan’es compensation package totaled $3.36 million in 2008, according to Talbot regulatory filings. That payout included a $1 milliobn base salary; roughly $931,000 in optiob awards; around $868,900 in value realized from past option and $314,000 in “other” compensation that included $50,00o0 in financial consulting servicee and a $98,000 housing allowance.
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