Barnes and Noble executives are taking
a freeze in pay. Top execs won't be getting their normal raises for the current fiscal year, which ends in January, 2010.
The freeze was made at the recommendation of management and approved by the compensation committee of the board of directors. The execs will still be entitled to collect bonuses if performance targets are hit. The freeze applies to chairman Len Riggio; vice chairman and CEO Steve Riggio; COO Mitch Klipper; CFO Joseph Lombardi, and Alan Kahn, president of Barnes & Noble Publishing.
William Lynch, who joined B&N earlier this year as president of Barnes & Noble.com, is still guaranteed to earn 150% of his base salary, in accordance with his employment agreement. Lynch's base salary is $800,000.
Clearly the Barnes and Noble board of directors is concerned about the fury unleashed on AIG executives for taking large bonuses when the company is in trouble and being bailed out by the American taxpayer. But Barnes and Noble isn't being bailed out by taxpayers, so really it's up to the shareholders as to whether they think a salary freeze is warranted. It certainly looks better than voting themselves large pay raises.
