NEW YORK (TheStreet) -- A day after a dismal fourth-quarter report and the announcement it would close one-fifth of its stores, RadioShack (RSH) has disclosed the retention bonus amounts offered to its executive team in an 8-K filing with the SEC. The bonuses will be paid out if the top-level executives remain with the company through to March 1, 2015.
"After giving due consideration of the skills and talent deemed critical to the company's business turnaround efforts currently underway, the difficult business environment and the competition for skilled, talented employees, the MD&C Committee authorized and directed the company to enter into retention agreements with certain of its executive officers," the company said in its filing.
CEO Joseph Magnacca will be paid $500,000 if he remains through to 2015. In addition, Magnacca is eligible for a bonus as large as $600,000, payable on April 3 next year, if he is able to achieve initiatives relating to the fiscal 2015 turnaround plan.
CFO John Feray will receive $275,000, and chief human resources officer Telvin Jeffries will be rewarded with $250,000. Store operations vice president Troy Risch and store concepts vice president Michael DeFazio will receive $275,000 and $187,500, respectively.
On Tuesday, shares plummeted 17.3% after the company said it planned to close 1,100 of its stores, or around 20% of its total store count, following a weak fourth quarter. Over the three months to December, revenue fell more than 20% year over year to $935 million and per-share losses were $1.29 a share.