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Footstar Execs Get Employment Contracts
DECEMBER 22, 2005 --
On December 16, Footstar entered into employment agreements with William Lenich, Dennis Lee, Michael Lynch, Randall Proffitt, Maureen Richards and Stuart Werner. The material terms of the Additional Employment Agreements are substantially similar.
The original term of employment under each of the additional employment agreements ends on December 31, '08. The terms of employment shall be automatically renewed for successive one-year terms unless either party gives at least 60 days notice.
Lenich will serve as the EVP/merchandising and will receive a base salary of $485,000, subject to annual review. He shall participate in the '96 Incentive Compensation Plan under which he shall continue to be afforded the opportunity to earn no less than 50% of his base salary per year if certain targets are achieved. Lenich shall receive $80,833 on each July 1 and December 31 of '06, '07 and '08 if he continues to be employed by Footstar through the date such payments are due. Upon its emergence from the Chapter 11, Lenich shall receive a restricted stock grant of 121,250 shares.
Lee will serve as the SVP/HR and will receive a base salary of $288,400, subject to annual review. He will be afforded the opportunity to earn no less than 50% of his base salary per year if certain targets are achieved. Lee shall receive $52,500 on each July 1 and December 31 of '06, '07 and '08 if he continues to be employed. Lee is also entitled to certain severance payments upon the occurrence of certain events of termination of his employment.
Lynch will become the company's SVP/CFO at such time Richard Robbins no longer serves as SVP/financial reporting and control and principal financial officer, which is expected to occur on or around the end of 1Q06. Lynch will then cease serving as SVP/finance of the Meldisco Division, a position which he has held since October '04. Lynch will receive a base salary of $267,800, subject to annual review. Lynch shall participate in the '96 Incentive Compensation Plan under which he shall continue to be afforded the opportunity to earn no less than 45% of his base salary per year if certain targets are achieved. Lynch shall receive $43,873 on each July 1 and December 31 of '06, '07 and '08 if he continues to be employed. Lynch is also entitled to certain severance payments.
Proffitt will serve as the SVP/Store operations and will receive a base salary of $311,500. Proffitt shall continue to be afforded the opportunity to earn no less than 45% of his base salary per year if certain targets are achieved. Proffitt shall receive $50,541 on each July 1and December 31 of '06, '07 and '08 if he continues to be employed. He shall receive a restricted stock grant of 73,203 shares. Proffitt is also entitled to accrue benefits under the supplemental executive retirement plan and he is entitled to certain severance payments.
Richards will continue to receive a base salary of $340,000, subject to annual review. She shall participate in '06 Incentive Compensation Plan under which she shall continue to be afforded the opportunity to earn no less than 50% of her base salary. Richards shall receive $61,875 on each July 1 and December 31 of '06, '07 and '08. She shall receive a restricted stock grant of 4,500 shares. Richards is also entitled to accrue benefits under the supplemental executive retirement plan and she is entitled to certain severance payments.
Werner will serve as the SVP/CIO and will receive a base salary of $283,000, subject to annual review. Werner shall participate in the '96 Incentive Compensation Plan under which he shall continue to be afforded the opportunity to earn no less than 45% of his base salary. Werner shall receive $46,407 on each July 1 and December 31 of '06, '07 and '08. Werner is also entitled to certain severance payments.
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Categories
Sporting goods industry
Payments
Retirement
Bonuses
Companies
Footstar Inc.
William Lenich
Meldisco Division
Concepts
base salary
severance payments
annual review
restricted stock grant
employment agreements
People
Dennis Lee
Michael Lynch
Randall Proffitt
Maureen Richards
Stuart Werner
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