Business

Sears sets Edward Lampert’s salary as CEO at $1

NEW YORK — Sears Holding Corp. has signed a contract with Edward Lampert to keep him on as chief executive at a salary of $1 per year.

A regulatory document filed Wednesday shows the billionaire hedge fund manager will be paid an annual base salary of $1, but with the opportunity for a bonus of up to $2 million in cash or stock and up to $4.5 million in stock per year.

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A number of companies have given their top leaders a salary of $1 during tough times to demonstrate their commitment to a turnaround. Some are then also rewarded through performance-based bonuses.

Sears said in January that Lampert would take over as CEO after Louis J. D’Ambrosio stepped down due to health issues involving his family. Lampert, 50, is chairman and largest shareholder of the Illinois company. Some investors worried whether Lampert would continue the investment D’Ambrosio made to improve the shopping experience. Sears, which operates the Sears and Kmart chains, is trying to turn itself around after years of weak sales and a failure to entice new shoppers.

Associated Press

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