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Severance impacts Mattel
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March 13, 2000: 4:41 p.m. ET
World's No. 1 toy maker expects $50M in compensation for departing execs
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NEW YORK (CNNfn) - Toy maker Mattel Inc. Monday said it expected to incur a first-quarter expense of $50 million as compensation for departing executives.
The world's largest toy manufacturer based in El Segundo, Calif. declined to say whether former CEO Jill Barad, who resigned last month amid growing pressure from shareholders over the company's growth strategy and fiscal performance, would get a piece of that. However, analysts said the $50 million figure at least hints at Barad's severance package.
In addition to Barad, Harry Pearce, the company's chief financial officer, also left last month.
Glen Bozarth, a Mattel, spokesman, confirmed that the $50 million, listed in a filing with the U.S. Securities and Exchange Commission, would go directly to compensating more than one departing executive. He declined to provide an exact number.
More detailed information on executive compensation is expected in April when the company files its proxy statement with the Securities and Exchange Commission, Bozarth said.
One of the country's most prominent female executives, Barad had been with Mattel since 1981, working her way up from product manager to CEO in 1997.
As CEO, Barad helped resurrect sales of the popular Barbie dolls and accessories. In addition to Barbie, Mattel owns such well-known brands as Fisher Price, Hot Wheels and Cabbage Patch Kids.
But Barad angered investors after leading the company's $3.5 billion purchase of The Learning Co., Mattel's faltering interactive unit.
The computer software firm cost Mattel $105 million in third-quarter losses last year, and caused the stock price to plummet to about $10 from a high of $30.
Bozarth also declined comment on the company's ongoing search for a new CEO.
Shares of Mattel (MAT: Research, Estimates) closed Monday up 5/8 to 9-11/16 on the New York Stock Exchange. 
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Mattel
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