Sears set to pay ex-CEO through 2010
Sears Holdings soon-to-be former CEO Aylwin Lewis will receive $1 million in yearly salary through March 2010, according to company filings with the Securities and Exchange Commission.
In accordance with his initial employment agreement made in 2005, Lewis will also continue to receive health and other benefits and will receive approximately 16,000 restricted shares valued at $88.62 per share and other stock options.
The company announced Jan. 28 that Lewis would be stepping down effective Feb 2.
The company also said new interim CEO Bruce Johnson will receive a pay raise to $900,000 and will gain restricted stock worth $1 million in two installments, one in 2009, the second in 2010.
Home Depot DC closer to fruition in Alabama
A Home Depot distribution center slated for Jefferson County, Ala., is closer to fruition, according to a report in the Birmingham News.
The approximately 650,000-square-foot facility is expected to employ “as many as” 400 people, according to the report.
The retailer is planning a similar facility in Monroe, Ohio, as well. There, Home Depot recently won approval for a $33.9 million, 657,000-square-foot facility.
Home Depot rescinds bid for EnerBank
Home Depot has ended its pursuit of EnerBank USA, a home improvement lender the Atlanta retailer had hoped to purchase with the goal of forming an industrial loan company (ILC).
Home Depot spokesman Ron Defeo said the retailer informed EnerBank of the decision last week.
“As we move into our fiscal 2008 year, this acquisition is no longer a part of our strategy as we are focusing all of our resources on our core retail business,” Defeo explained. “As of now, we have no plans to pursue this type of strategy.”
Currently, a moratorium is in effect by the Federal Deposit Insurance Corp. (FDIC) on approvals of new ILCs until Jan. 31. Home Depot is pulling out of its bid just as the waiting period set by the FDIC is due to expire next week
Most recently, the U.S. House of Representatives overwhelmingly passed legislation that would stop retailers and other commercial companies from starting ILCs. The legislation would bar non-financial companies from owning or starting ILCs, a process both Home Depot and Wal-Mart have undertaken in the last year. Wal-Mart has since withdrawn its application to establish an ILC.
While critics of ILCs say the banks hurt competition by giving too many assets to too few large companies, proponents say ILCs foster competition by reducing fees and costs to consumers.