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CHICAGO - A federal bankruptcy court today approved Kmart's multimillion-dollar compensation package for its chairman, which was sharply scaled back to win approval from creditors, The Associated Press reports.
Kmart's chairman and CEO, James B. Adamson, agreed to erase a provision from his contract that would pay him a $4 million bonus if the company emerges from bankruptcy and reduce the amount of his severance if fired before next May.
"Mr. Adamson is doing that which Mr. Adamson is asking all other employees to do," Kmart attorney John William Butler told the court.
Kmart creditors agreed to the package once the modifications were made.
The package includes a base salary of $1.5 million a year and an additional $1.875 million if the company meets key targets.