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Pep Boys (PBY) Exec Forfeits Partial Pay/Benefits

Manny, Moe & Jack of the Pep Boys (PBY) gave their former chief executive a compensation package worth $17.2 million for just over 10 months of work in 2007, but he had to forfeit 39% of it this year after resigning.

Jeffrey Rachor, an executive hired from Sonic Automotive Inc. in March 2007, received a salary of $1.04 million and a bonus of $1.2 million, according to a Securities and Exchange Commission filing made May 9th. He left Pep Boys in March. For the fiscal year that ended February 2nd, he also got non-equity incentive plan compensation of $1.8 million and other perks worth $743,068, which includes $97,720 in temporary living and commuting expenses. But when Rachor quit this year, he gave up $520,015 worth of retirement benefits and company matches to deferred compensation.

In 2007, Rachor – who resigned to join a luxury car dealership venture backed by Dell Inc. (DELL) – was also given stock and option awards worth $12.43 million on the date they were granted. But he had to give up $6.22 million in unvested options and restricted shares when he left, the company said.

The remaining options he holds, worth $2.46 million on their grant date, are currently worthless because the price at which Rachor is allowed to buy shares is below what the stock is trading. However, Rachor could stand to gain if the stock rebounds before the options expire in late June.

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