By St. Louis Business Journal

Arch Coal outlined in a regulatory filing Thursday that its two newly elected board members are eligible for a combined $405,000 in annual director and committee retainer fees.

On Wednesday, the company said it increased its board to 14 members with the election of J. Thomas Jones and Peter Wold, who have regional expertise in its key operating state of West Virginia and Wyoming.

Jones and Wold each will receive a new director fee equal to $60,000, as well as an annual retainer of $120,000, according to the companyâ¿¿s non-employee director compensation plan, Arch Coal said in the filing.

However, in keeping with the company⿿s deferred compensation plan, all of the new director fee and half the annual retainer must be deferred into a ⿿hypothetical investment⿝ in the company⿿s common stock, the filing said, ⿿in order to more closely align the interests of the company⿿s directors with the long-term interests of stockholders.⿝

Arch Coal directors also receive annual committee retainer fees.

Jones will get a fee of $15,000 for serving on the companyâ¿¿s Audit Committee and $10,000 for serving on its Energy and Environmental Policy Committee.

Wold will receive a $10,000 retainer fee for each of his posts on Archâ¿¿s Finance Committee and its Energy and Environmental Policy Committee.

Both new directors also will be eligible to participate in Arch Coalâ¿¿s deferred compensation plan and other compensation arrangements for non-employee directors, and are subject to its stock ownership guidelines for non-employee directors, according to the filing.

Jones will serve as a Class II director with a term expiring at the 2011 annual meeting. Wold will serve as a Class III director, and his term will expire at the companyâ¿¿s 2012 annual meeting.

St. Louis-based Arch Coal (NYSE:ACI), led by Chairman and CEO Steven Leer, is the second-largest U.S. coal producer with revenue of $2.6 billion in 2009. The company has mining complexes in Wyoming, Utah, Colorado, West Virginia, Kentucky and Virginia.

Copyright 2010 American City Business Journals

Copyright 2010