Trans World CEO Gets Extension, Pay Cut2 Jan, 2009 By: Erik Gruenwedel
Robert Higgins, founder and CEO of Trans World Entertainment Corp., received a three-year contract extension with a base salary of $1 million a year — $250,000 per year less than the previous five-year contract that ended April 30, 2008.
Albany, N.Y.-based Trans World is the parent of the f.y.e (For Your Entertainment) retail chain, Second Spin and related Web sites.
Higgins’ contract, which took effect Dec. 30, includes 1.1 million shares of restricted stock, the opportunity to earn a bonus of up to 200% his base salary, and related expenses, according to a regulatory filing.
Trans World pays Higgins’ $9,718 annual country club dues and $50,216 for a personal assistant. He earned $2.16 million in total compensation in 2007, compared to $2.8 million in 2006.
Higgins, who last year attempted to take Trans World private with $5 per share cash offer, is the company’s largest shareholder with 12.8 million shares.
The CEO receives $2 million in rent for the building housing Trans World’s corporate offices, which he owns. The company also pays Higgins $40,000 in rent for an f.y.e. store located in a separate building of his.
Finally, Trans World pays $29,000 to charter a corporate jet owned by Higgins.
The company reported a net loss of $28.4 million in the third quarter (ended Nov. 1).
Trans World’s stock Jan. 2 closed down nearly 75% from its 52-week high of $4.80 per share.
Trans World Jan. 8 reports its 2008 holiday retail results.