RadioShack CEO gets $5.5M in 2008

Fort Worth, Texas RadioShack chairman and CEO Julian Day received a compensation package valued at nearly $5.5 million, according to an Associated Press analysis of a regulatory filing.

That more than doubled the total from a year ago, even as the retailer struggled while consumers cut back on spending.

But, according to the report, nearly 60% of Day's compensation came in the form of stock options that are currently "under water" and therefore of little value.

Day, 56, received a salary of just over $1 million, a marginal increase over the prior year, according to a proxy filed with the Securities and Exchange Commission on Friday.

He received a performance-related cash bonus of $1.2 million, down more than 19% from 2007. Other compensation, including insurance premiums, 401(k) contributions and matching charitable contributions, totaled $14,696.

Stock option awards topped $3.2 million on the day they were granted. But the option to purchase 500,000 shares at $18.52 each, granted in February, currently has little value because RadioShack shares closed Thursday at $10.07. The options vest through 2011, so they could become valuable if the stock price rises above the exercise price.

In 2008, RadioShack's profit dropped 19% to $192.4 million, from $236.8 million in 2007. Sales for the year declined 1% to $4.22 billion from $4.25 billion.