Posts Tagged ‘$400’

ShopNBC Can’t Afford Charla Rines, But It’s Paying The New President $400,000 A Year

February 3, 2010

ShopNBC's $400,000 man

ShopNBC is paying its new president, QVC and Macy’s veteran Bob Ayd, a base salary of $400,000, according to a filing with federal regulators Wednesday.

After the market closed, ShopNBC stealthily filed an 8-K with the Securities and Exchange Commission on Ayd’s compensation package. The 61-year-old, named the network’s president Feb. 1, will receive an annual base salary of $400,000, according to the filing.

He also “will have a fiscal year 2010 incentive opportunity to earn up to 65 percent of his annual base salary.” If we can translate that into English, we think he can get up to 65 percent of his salary, or $260,000 on top of his annual wages, as a bonus if he hits his numbers. ShopNBC is also relocating Ayd.

As part of the deal, ShopNBC granted Ayd options to purchase 350,000 shares of common stock at an exercise price equal to the fair market value on the date of grant — or $3.99 on Feb. 1 — 280,000 of which vest over three years and 70,000 of which vest upon his relocation to Minnesota.

Canned host Charla Rines

This all may not sit well with fans of veteran ShopNBC host Charla Rines, who was let go by the network in January. Presumably, as a old-timer at ShopNBC, Rines was making a good salary, which may have helped pave the way for her demise. Or her age could have done her in. Either way, many ShopNBC viewers are not happy, according to the posts on our blog on her exit.

Ayd signed a non-compete agreement, and will receive an amount equal to his base salary, namely $400,000, if he is terminated without cause during his first year of employment.

Ayd served as executive vice president and chief merchandising officer at QVC domestic from 2006 to 2008. He also served as senior vice president of design Ddvelopment & global sourcing and brand development from 2005 to 2006, and as senior vice president of jewelry andfFashion from 2000 to 2004.

Ayd began his career at Macy’s in 1975 as a buyer of handbags, bodywear and footwear, launching a 20-year tenure that included promotion to numerous executive leadership positions, culminating with senior vice president in women’s sportswear. Ayd was an independent consultant from 2008 to 2009.

When Ayd was named ShopNBC president, CEO Keith Stewart voluntarily relinquished his title as president, while continuing as CEO and a director. Ayd reports to Stewart.

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