This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Talbots Pays Execs; Market Makes it Pay

Stocks in this article: TLB

Talbots (TLB) is making drastic cuts aboard the ship -- for everyone, that is, but the captain.

Shares of the women's apparel retailer plunged 13% to $6.13 in late-day trading Monday, following an announcement on Friday that the company will dole out $1.2 million to its CEO and President Trudy Sullivan.

The news came after the company cut 370 jobs, and announced plans to suspended its quarterly dividend and freeze its pension plan.

Talbots said the extra padding on Sullivan's pay check is to offset recent reductions in her retirement benefits. Last year she racked up a $1 million base salary, but her pay package also included about $931,000 in option awards, around $868,900 in value realized from past option grants, and $314,000 in "other" compensation that included $50,000 in financial consulting services and a $98,000 housing allowance -- for a total of $3.35 million.

So all those laid-off employees are probably pretty worried about the reduction in her retirement benefits.

Regardless, Talbots said in a Securities and Exchange Commission filing that it was required to offset Sullivan's decrease in benefits per her employment contract.

The company will also boost the annual salary of senior real estate and legal executive, Richard O'Connell, by 23%, bringing it to $500,000. He also received an extra 50,000 shares of restricted stock and an option to buy 74,000 shares of Talbots' stock, effective April 30.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,759.48 +298.16 1.81%
S&P 500 1,960.79 +33.68 1.75%
NASDAQ 4,473.36 +90.5130 2.07%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs