Loading ...BY Greta Guest • FREE PRESS BUSINESS WRITER • April 23, 2009
Borders Group Inc. paid its new CEO and President Ron Marshall a salary of $57,692 in 2008, but his total compensation of $380,177 included a hefty signing bonus, according to a federal filing.
The proxy filed Wednesday with the U.S. Securities and Exchange Commission also details the multimillion-dollar payoffs to former executives ushered out by the Ann Arbor-based bookseller in January.
Former CEO and President George Jones received $4.6 million in salary, stock and other compensation in fiscal 2008, which ended Jan. 31.
Edward W. Wilhelm, former chief financial officer, was paid $2.3 million last year.
And Robert P. Gruen, the former executive vice president of merchandising and marketing, went out with $1.9 million.
"With respect to Mr. Marshall’s salary, the committee’s goal was to be slightly below market and to allocate a greater value to noncash equity incentive awards, the ultimate value of which is tied to the company’s performance," the board of directors’ compensation committee stated in the filing.
Marshall’s 3-year employment contract will pay him a $750,000 base salary, which can increase.
He also is entitled to annual bonuses of up to 200% of his base pay.
His signing bonus was $250,000, and he can receive up to $100,000 for relocation to Ann Arbor, according to a Jan. 7 SEC filing.
He also has options to purchase large blocs of Borders stock and is required to own a minimum of 200,000 shares.
Borders Group, struggling with a turnaround effort, reported a 57% drop in profits for the fourth quarter ended Jan. 31 and predicted negative sales for 2009.
While Borders has trimmed staff and closed some stores, major cuts are not in the plan this year, Marshall said last month.
For the year, Borders reported revenue of $3.27 billion, down from $3.59 billion a year ago.
Borders had a net loss of $186.7 million in 2008, compared with a net loss of $157.4 million in 2007.
Other executives included in the report and their total compensation were:
• Mark Bierley, executive vice president and chief financial officer, $665,496.
• Kenneth H. Armstrong, executive vice president of U.S. stores, $1.2 million. Armstrong left the company Feb. 2.
• Daniel T. Smith, executive vice president and chief administrative officer, $927,556.
• Thomas D. Carney, executive vice president, general counsel and secretary, $831,595.
Borders shares rose 15% Wednesday, closing at $1.85, up 24 cents, on the New York Stock Exchange.
Contact GRETA GUEST: 313-223-4192 or gguest@freepress.com.
