NEW YORK -- The salary of John J. Pomerantz, chairman and chief executive officer of The Leslie Fay Cos., in 1993 remained the same as in 1992 and 1991, although last year he paid back a chunk of his bonus and profit sharing granted for 1990 and...
NEW YORK -- The salary of John J. Pomerantz, chairman and chief executive officer of The Leslie Fay Cos., in 1993 remained the same as in 1992 and 1991, although last year he paid back a chunk of his bonus and profit sharing granted for 1990 and 1991.
Leslie Fay's Form 10-K, filed last week with the Securities and Exchange Commission, puts Pomerantz's salary for each of the three years at $798,915.
It also shows that as a result of the restatement in September of financial results for 1990 and 1991 stemming from an accounting scandal that turned profits into losses, Pomerantz repaid $1,627,943 of combined bonus and profit-sharing payments, reducing his bonus to $1,928,457. The emergence of the accounting scandal also forced the company into Chapter 11, where it has been operating since April 1993.
The 10-K, which also serves as an annual report to stockholders, confirms that in February 1993, the U.S. Attorney for the Middle District of Pennsylvania, based in Harrisburg, issued a grand jury subpoena seeking the production of documents as a result of the company's announcement of accounting irregularities. A spokeswoman for the U.S. Attorney's Office said Monday she could not comment on the status of the investigation as matter of policy.
In the report, Leslie Fay said it is cooperating with an SEC investigation that was also initiated in February 1993. The report said the SEC obtained an order directing a private investigation of the company in connection with the filings of annual reports.
In other salary disclosures, the 10-K shows that Alan Golub, who retired in late 1992 as president and chief operating officer, repaid $924,240 of his bonus and profit-sharing payments, and Ralph Iannazone, former vice president-manufacturing, repaid $72,209.
The 10-K also lists salaries of other top paid officials. Michael J. Babcock, who joined the company in September 1992 as president and chief operating officer, was paid $700,000 in 1993, and $137,500 in 1992. John Ward, who moved up last year from chairman of the sportswear division to corporate senior vice president, made $400,000 in salary and $$139,005 in bonus in 1993. In 1992, his salary was $300,000, and his bonus was $239,005. The figures were the same in 1991.
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