By  on July 17, 2009

William McComb, chief executive officer of Liz Claiborne Inc., has a new three-year contract.

According to a regulatory filing with the Securities and Exchange Commission, McComb’s pact, executed on Tuesday, carries his employment at Claiborne to July 14, 2012, and will be extended automatically for an additional month for each month of service.

McComb joined Claiborne as ceo on Nov. 6, 2006, and the company had added incentive to come to terms with him before his three-year anniversary. He would have been entitled to a lump sum payment of $4 million if he hadn’t received a new agreement 90 days before expiration of the earlier one.

Most details of McComb’s arrangement remained unchanged, including his $1.3 million salary. However, a severance benefit agreement was altered to conform more closely to those of executives who report to him. If his employment is terminated “without cause or by him for good reason,” the ceo would receive a lump sum equal to two times his salary at the time and two times his target annual bonus of 150 percent of his base salary and other consideration.

In the previous agreement, McComb would have received a payment of $4 million upon termination.

McComb’s tenure has been a turbulent one as he’s overseen the sale of numerous nameplates, reorganized the firm into direct and partnered brand units, outplaced its sourcing operations and worked to reinvigorate the fashion content of many of its lines, particularly the Liz Claiborne New York collection now being designed by Isaac Mizrahi.

Claiborne has amassed considerable losses as it’s restructured and slimmed down. Including impairment charges, the company’s losses last year hit $951.8 million as revenues fell 10 percent to $3.98 billion.

In 2008, McComb’s overall compensation fell 13.4 percent to $5.5 million, including his $1.3 million base salary. Stock and option awards, not necessarily recognized because of vesting schedules and falling stock prices, fell to $3.8 million from $4.5 million in 2007.

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