Former Kmart Ceo May Stay On Payroll

Unlike most Kmart Corp. employees who lost their jobs in a reorganization, former chief executive Joseph Antonini could continue to receive his salary and bonus for two years.

That would be in addition to any other severance benefits the board might approve for the 31-year Kmart veteran, who resigned as president and CEO on Tuesday under pressure from stockholders.

Under terms of his contract, Antonini can keep his base salary and annual performance bonus for two years if he leaves the company “for good reason.” It does not define that term.

“That’s something the board is still reviewing,” spokeswoman Teri Kula said Wednesday.

The contract, described in Kmart’s 1993 proxy statement, says Antonini is obligated to seek another job and that his severance pay would be reduced by compensation from a subsequent job.

According to the 1993 proxy statement, the latest available, Antonini was paid $893,000 that year. His last bonus, paid in 1992, was $604,901.