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A win, win situation…

While it’s way too early to tell how many top executives will lose their jobs as a result of Kmart’s (KMRT) $10.85 billion deal to acquire Sears (S), at least one new Sears executive has reason to celebrate no matter what happens. In August, Luis Padilla, a former top executive at Target Corp. (TGT) came to Sears as president for merchandising and marketing. According to his contract, which was included in the Q Sears filed last week, Sears agreed to pay Padilla $650,000 a year and guaranteed him a $650,000 bonus for 2004, even though he’ll only wind up working about four months during the current fiscal year. Padilla, 50, also received a $100,000 signing bonus, 100,000 stock options and 50,000 shares of restricted stock. If Padilla winds up losing his job because of the deal, he’ll collect two years worth of salary and his annual bonus in a lump sum payment plus be able to collect on the restricted shares and options. So either way, he’ll walk away a winner.