Todd ( TOD) will pay shareholders a special dividend of $4, contingent on the approval of changes to the company's stock options plan.

Todd also raised its quarterly dividend to 15 cents from 10 cents, with the next payout coming June 23 to stock of record June 8. The special dividend would comprise $22 million, Todd said.

Todd scheduled a special meeting on May 23 for a shareholder vote on the options adjustment. Todd wants to protect existing options holders from the negative impact of the special dividend, which is likely to reduce the price of the company's shares by about $4 when it is paid.

"Because the company's incentive stock option plans did not contemplate a one-time extraordinary cash dividend," Todd said, "the board of directors has approved adjustments, subject to shareholders' approval, that will protect employees with unexercised stock options as the share price adjusts due to this one-time extraordinary cash dividend."

Todd added that, "the adjustments approved by the company's board of directors are intended to create parity for the company and the option holder such that before-dividend and post-dividend positions are economically equivalent."

Todd's stock closed at $28.25 Monday.