Gary M. Pfeiffer holds a remarkable number of important jobs on the board of directors of retailer The Talbots. He is chairman, head of the compensation committee, and a member of the corporate governance and nominating committee. He has been a member of the board since 2004 a period over which the The Talbots has gone through an unprecedented collapse of its business and economic fortunes. The firm’s stock has dropped over 80% during the last five years.
Matters at The Talbots have only gotten worse recently. Same-store sales for the period which ended on April 31 were down 7.7%. The figure is actually worse because it does not include stores which will be closed.
The Talbots posted a drop in revenue in the last quarter to $310 million compared to $321 million in the same quarter a year ago. The company only made $1.1 million. Comments about second quarter prospects sent the stock plunging.
Pfeiffer was on the board when Trudy Sullivan joined The Talbots as president and CEO in August 2007. In light of his position, he was obviously key in her selection.
The compensation committee recommended and the board supported that Sullivan get a 2010 pay package of $6.3 million in 2010, much higher than in the previous two years. Pfeiffer made $177,000 for the same period.
Pfeiffer’s support of management and Sullivan large pay package is shameful.
Douglas A. McIntyre
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