Former Kmart CEO to Receive Severance
Kmart Corp.’s former Chief Executive Chuck Conaway will receive at least $9.5 million as part of his severance package from the bankrupt retailer.
Under the company’s severance policy, Conaway is entitled to three times his base salary, which is about $1.5 million a year. Kmart also will forgive a $5-million loan it gave Conaway last year.
An amendment to his contract filed Jan. 22 also entitled him to an additional $6.5-million bonus if he stayed with the company through July 2003 or was terminated for any reason before then.
Conaway said he would accept one-third of that amount, or about $2 million. Conaway also was granted unspecified stock options.
Those terms were subject to approval by a bankruptcy judge in Chicago.
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