Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : MAT - Mattel - toysRthem -- Ignore unavailable to you. Want to Upgrade?

To: appro who wrote (554)	5/12/2000 3:03:00 PM
From: JGoren	Read Replies (1) \| Respond to of 706

Now why would he want to squealch the party; I thought the purpose of the deal was to make it so attractive to a new CEO the co. can hire the very very best: NY official urges Mattel to cut ex-CEO's severance NEW YORK, May 12 (Reuters) - A $50 million good-bye kiss for Mattel Inc.'s <MAT.N> former chief executive Jill Barad is excessive in view of the poor performance of the toy company's stock during her three years at the helm, New York State Comptroller Carl McCall has said in a letter urging board members to reconsider the severance package. In the letter to Mattel's acting chairman William Rollnick dated May 8, McCall noted the state's Common Retirement Fund, for which he is sole trustee, holds more than 1.2 million Mattel shares. "During the three years that Ms. Barad served as CEO of Mattel, the total return of Mattel shares was a negative 55.8 percent as the company's stock price fell from 27-3/4 a share to 11-13/16," McCall said. He noted that the Standard & Poor's 500 stock index was up 99.2 percent over the same period. "It is disturbing to hear that the board has elected to reward the person who presided over this precipitous decline," he said. McCall criticized "additional and accelerated benefits" that were offered to Barad upon her departure on top of a generous severance provision that was negotiated at the time she became CEO in January, 1997. Barad resigned on Feb. 3 of this year. "I am particularly disturbed that the board decided to forgive a $3 million loan granted for the purchase of a home and to provide payments on a $5 million life insurance policy," McCall wrote. He added that he was "outraged" by an agreement for the company to continue to pay for outplacement services, memberships and financial counseling services. The comptroller said that the company's announcement that it was taking an after-tax charge of $38.4 million, equal to 9 cents per share, for severance payments added insult to injury. The state retirement fund invests for 880,000 retirees and active workers and has about $127 billion in assets. A spokesman for Mattel was not immediately available for comment. Mattel, based in El Segundo, Calif., is the world's largest toymaker. Its products include Barbie dolls and Hot Wheels cars. Mattel shares were off 13/16 to 10-3/8 Friday afternoon. 14:18 05-12-00 _____________________________- Mattel Urged to Reconsider Barad's $50 Mln Severance New York, May 12 (Bloomberg) -- New York State Comptroller Carl McCall, who oversees the state's $127 billion public employee pension fund, urged Mattel Inc. directors to reconsider the $50 million severance package they gave former chief executive Jill Barad. Barad quit in February under pressure from investors after shares of the world's largest toymaker lost 56 percent during her three-year tenure. ``It is disturbing to learn that the board has elected to reward the person who presided over this precipitous decline,'' said McCall in a letter to acting Mattel Chairman William Rollnick. A spokesman for Mattel declined to comment. While executive pay has been on the backburner for pension funds as U.S. stocks rallied, the issue has made a minor comeback in recent months as stocks stalled. The Teachers Insurance and Annuity Association in March, said it's targeting bloated compensation. The world's largest pension fund called for companies to link executive pay to stock performance, and prohibit option ``mega-grants'' out of step with packages at comparable companies. In April, the California Public Employees' Retirement System, protesting Bank of America Corp. Chief Executive Hugh McColl's $76 million pay package, said it will withhold votes from directors on the bank's compensation committee. In the severance package, Mattel gave Barad $26.4 million in cash, plus a pension worth $1.2 million a year for 10 years, a $5 million life insurance policy, and millions more for a forgiven loan. The El Segundo, California company also paid the taxes due on the loan. ``I urge you to reconsider the severance payments,'' McCall wrote. ``By rejecting such an excessive compensation package, the board members will send a strong signal about their commitment to shareholders.'' The protest by McCall, whose fund invests for 900,000 state workers and retirees, is largely symbolic. The state holds 1.2 million Mattel shares but officials said it's unlikely to sell them regardless of how the company responds. May/12/2000 10:33 GMT