Tuesday, January 01, 2008

ZLC update

Betsy Burton is (apparently unceremoniously) out at Zale, while Neil Goldsmith, formerly of Children's Place, is in. Clearly Zale needs major help (see stock chart link below). Whether Mr. Goldsmith is up to the task remains to be seen. His resume' has too much department stores (the business of the past) and just a little specialty biz. In addition to a $925K base, Goldsmith got a tidy $800K signing bonus. Surprisingly, I can't find anything on Burton's package - I'm sure she got something as a going away present...

One must say, however, that the Zale board finally realized it had to do something as it watched steady deterioration in performance, earnings and shareholder value.


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