Bally ex-CEO received $900,000 bonus, board member resigns
Bally Total Fitness (NYSE: BFT) disclosed in a proxy filed with the SEC that it paid former Chairman and CEO Paul A. Toback a $900,000 bonus for 2005 -- an 125 percent increase from his 2004 $400,000 bonus.
Toback received a base salary of $575,000 for 2005, according to Bally's filing with the SEC. As previously reported, Toback also received a lump-sum payment of $3.8 million and immediate vesting of a restricted stock award of 135,000 shares as part of a separation agreement.
Toback, who has been criticized for the fitness club chain's financial turmoil, resigned as chairman, president and CEO in August. His contract was to run through Dec. 31, 2007.
The proxy also revealed that the remaining nine members of the 2005 board were also well-compensated. Eric Langshur pocketed $217,072; Barry Deutsch, Dr. James F. McAnally and John W. Rogers Jr. each received $183,000-$185,000; and J. Kenneth Looloian was paid $142,992. The remaining members receive the following: Adam Metz, $8,583; Steven S. Rogers, $10,667; Marilyn Seymann, $8,008; and Stephen Swid, $46,000.
In other company news, John W. Rogers Jr. notified Bally on Nov. 16 of his resignation from the company's board of directors, effective immediately. A statement said Rogers' resignation was not due to any disagreement with the company. Additionally, the board voted to reduce its size to five members effective immediately prior to the company's annual meeting of stockholders scheduled for Dec. 19, by eliminating the vacancy in Class II created by Rogers' resignation.
As previously disclosed, the board voted to eliminate the Class I directorship currently held by Steven S. Rogers effective upon the annual meeting of stockholders, which will further reduce the size of the board to four at that time.
On Nov. 18, the board appointed Don R. Kornstein as chairman of the compensation committee. A day after the announcement, Bally stocks closed on Nov. 21 at 2.45 on a volume of 238,400. The company's 52-week high is 9.92 (March 31, 2006) and its low is 1.46 (Sept. 29, 2006).
In an unrelated development, the U.S. Department of Labor announced that Bally has agreed to pay nearly $755,000 in back wages to 3,245 workers as a result of overtime pay violations between December 2003 and March 2006. It said an audit revealed that Bally had improperly computed overtime compensation in violation of the Fair Labor Standards Act.
Amer Sports exercises 2002 warrants
Amer Sports said 20,700 company shares have been subscribed for as a result of an exercise of its 2002 warrants. The corresponding increase in the company's share capital amounting to Euro 82,800 (USD $108,477) was registered on Nov. 24. As a result of this increase, Amer Sports' share capital now totals Euro 286.5 million (USD $375.4 million) and the total number of shares in issue is 71,646,960. The new shares will be listed on the Helsinki Exchanges on Nov. 27. The subscription period of its 2002 warrant scheme will end on Dec. 31, 2007.
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