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The Detroit News reports that outgoing Kmart CEO Julian Day stock options worth $94 million at the current stock price as a reward for his 10 months on the job, during which time he helped the company emerge from bankruptcy.

The gift is in addition to his salary, a $2 million bonus he gets when he signs a release agreement with the company, and his $1 million annual bonus for the past year.

The award, the paper notes, is part of a long Kmart tradition of writing big checks or offering generous bonus packages to departing executives.
KC's View:
We realize that this is business as usual, but we think that this is just an awful decision by Kmart.

Day was on the job for about 10 months. That’s roughly 300 days. This works out to a bonus of about $300,000 a day.

While Kmart certainly isn’t in the dire straits it was a year ago, the fact remains that its stores remain mediocre, its performance unimpressive, and its vision cloudy…unless, of course, you count selling off real estate for profit as vision.

We keep thinking about all the stores that have been closed and the people who have been laid off by Kmart, not to mention the investors who lost millions of dollars on the old company…and wonder what they must think of such bonus programs.

Actually, that’s not true. We know exactly what they think.

And it’s unprintable.