FORMER REVLON CHIEF GETS $3.5 MILLION
Byline: Thomas Cunningham
NEW YORK — Despite its ailing financial condition, Revlon paid its former chief executive George Fellows $3.5 million in salary and bonus in 1999, up from $1.9 million a year earlier, according to the company’s proxy statement filed with the Securities and Exchange Commission Monday.
Revlon will pay Fellows up to an additional $5.4 million before the end of 2002 as part of his severance agreement, the proxy said. Fellows, who left Revlon in November after the company’s fourth straight quarter of dismal financial results, was paid $1.8 million under the agreement in 1999 and in 2000 he will receive $900,000, according to the proxy.
Included in the $3.5 million is a “restructuring bonus” of $1.7 million paid to Fellows because he achieved objectives set by the compensation committee, according to the filing. Last year Fellows received a bonus of $115,000.
Fellows was granted options on 170,000 shares of Revlon stock in 1999. Revlon guaranteed its executives at least 50 percent of their eligible bonus to make sure they did not leave the company during its difficulties last year.
In December Fellows was succeeded by Jeffrey Nugent, formerly head of Neutrogena. During 1999, Nugent was paid $160,256 in salary and consulting fees and $75,125 in other compensation, mainly for relocation expenses. Nugent also received options on 300,000 shares in 1999, and should receive options on 100,000 more in each of the next two years, according to the proxy.
Nugent’s base salary will rise from $1 million in 2000 to $1.3 million in 2002 and he is guaranteed a bonus of $500,000 in 2000, regardless of the firm’s performance. Nugent is also eligible for a $500,000 loan to cover relocation expenses and additional payments from the firm to help him purchase a New York residence.