EXECUTIVE MOVES
Bronstein Resigns From Wet Seal Board
Kathy Bronstein resigned from the board of directors of The Wet Seal Inc., according to a company announcement on April 7. She had served on the board of the beleaguered company since September 2012 and also served as its chief executive officer and vice chair from 1995 to 2003.
Wet Seal did not state a reason for Bronstein’s resignation. However, in a statement, Bronstein said that “Wet Seal will always have a special place in my heart, and it was an honor to return to Wet Seal to work with my fellow board members and Wet Seal’s management team to help define the company’s strategic vision for today and beyond.”
Wet Seal also announced April 7 that the company’s board decided to reduce cash compensation for its directors by 20 percent for the rest of fiscal 2014. It also will reduce the number of director nominees at its upcoming annual meeting from nine to seven.
Lynda Davey, the non-executive chairman for the board of directors, said that by reducing director compensation and the number of directors nominated, the board is supporting cost-reduction efforts that have been taken by management.
However, the initiative comes one month after the board increased from seven to nine members. It appointed Nancy Lublin, Adam Rothstein and Deena Varshavskaya to fill a vacancy on the board and two newly created directorships. The three new directors were to receive an annual stipend of $55,000 and a restricted stock grant with a cash value of $110,000, according to financial documents.
On March 20, Wet Seal announced results for its fourth quarter for fiscal 2013. Net sales declined to $121.8 million compared with $161.7 million in the same quarter the previous year. Same-store sales declined 16.5 percent.
