DOW JONES NEWSWIRES
Mattel Inc. (MAT) will bring its executive-severance plan in
line with current practices, eliminating individual contracts for
executives under the chief executive.
As a result, the toy maker won't renew contracts for three top
executives - Chief Financial Officer Kevin Farr, President of
Mattel Brands Neil Friedman and Executive Vice President of
Worldwide Operations Thomas Debrowski - after their pacts expire in
2011 and 2012, the toy maker said in a Securities and Exchange
Commission filing.
However, Mattel said it expects the three men to remain employed
with the company beyond those expiration dates.
Under the new plan, executives terminated without cause or
leaving for "good reason" will get a severance package based on
their recent compensation packages. Other benefits include full
vesting of all stock options granted after the executive's
eligibility date under the plan for up to three years and up to two
years of health-insurance coverage.
Mattel and rival toy makers are looking to rebound from the
worst holiday shopping season in recent years. That weakness
continued in the first quarter for Mattel, which reported a wider
first-quarter loss as revenue decreased worldwide.
Shares were down 4.2% to $15.67 in recent trading, amid a broad
decline.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com