LITTLE ROCK — QUOTE OF THE DAY “It’s an under-followed, under-appreciated company that has worked very hard to correct its cost structure, eliminate unprofitable stores and tailor their merchandise selection more to what their consumers want.” Bill Dreher, an analyst at Deutsche Bank, talking about Dillard’s Inc.
Article, 1DOutback to settle discrimination suit
DENVER - Outback Steakhouse has agreed to pay $19 million to female workers and take other steps, including hiring a new human resources executive, to settle a sex discrimination lawsuit.
A consent decree describing the settlement between the Tampa-based restaurant chain and the U.S. Equal Employment Opportunity Commission was filed in U.S. District Court in Denver on Tuesday.
The EEOC filed a lawsuit against Outback there in 2006, claiming that female workers were denied favorable jobs which prevented them from advancing to profit-sharing management positions.
Outback has also agreed to institute an online application system for managerial positions and hire a human resources executive for a new position called vice president of people. It also agreed to hire a consultant to monitor its compliance with the settlement and to report back to the EEOC on how it’s doing every six months.
Outback didn’t acknowledge any wrongdoing. Parent company OSI Restaurant Partners said settling the suit was better than spending time and money on litigation.
Under the settlement, the $19 million will be distributed to women who have worked at corporately owned Outback restaurants for at least three years since 2002. Letters will be sent to them telling them of the settlement.
Firm to pay $1.25 million in toys case
WASHINGTON - An Illinois firm agreed to pay a $1.25 million settlement for importing and selling Thomas & Friends children’s toys that contained lead levels above legal limits and risked sickening children.
In agreeing to the penalty settlement, RC2 Corp. denied that it knowingly violated federal law as alleged by the Consumer Product Safety Commission, the agency said in a statement Monday evening.
The commission, which provisionally accepted the settlement, charged that RC2 Corp. of Oak Brook, Ill., and one of its subsidiaries, Learning Curve Brands Inc., knowingly imported and sold Thomas & Friends Wooden Railway toys that had “paints or other surface coatings” containing lead levels above 0.06 percent by weight. The toys were imported from China.
That level violated a 1978 lead paint ban on toys.
“This failure created a risk of lead poisoning and adverse health effects to children,” the commission said in a statement.
From May through September 2007, RC2 reported that more than two dozen styles of vehicles, buildings and other train set components were found to contain lead levels that violated the 1978 ban.
That amounted to some 1.7 million units sold that were later recalled between June and September of that year, according to the Consumer Product Safety Commission.
Report: Morgan Stanley looking at pay
NEW YORK - Morgan Stanley is considering the way it compensates its top executives, looking to defer more pay and benchmark salaries against rivals, The Wall Street Journal reported Monday, citing people familiar with the matter.
The move reflects Wall Street’s effort to minimize criticism of its pay practices and at the same time maintain its executive talent, the Journal reported.
Earlier this month, Goldman Sachs Group Inc. said its top executives will not receive cash bonuses this year.
Calls to Morgan Stanley for comment were not immediately returned.
According to the report, Morgan Stanley’s compensation committee has met several times in recent weeks to discuss pay plans.
The New York investment bank may decide to pay senior executives about one quarter of their 2009 pay in cash, with the rest coming as deferred stock, the Journal reported.
Another plan being considered would have most of the top 30 Morgan executives submit 65 percent or more of their pay to “clawbacks,” where they would have to return money in the event of future losses.
Morgan Stanley could also determine that 20 percent of one’s total compensation would come in shares awarded based on the company’s share price compared with rival firm’s share prices, the Journal said.
S. Korea clears exec for Olympics bid
SEOUL, South Korea - Convicted ex-Samsung Chairman Lee Kun-hee will be granted a special pardon to allow the influential business magnate to rejoin efforts to obtain the Winter Olympics for South Korea, the government said Tuesday.
Lee, 67, stepped down in April 2008 after 20 years at the helm of the Samsung Group after being indicted in connection with losses at a Samsung affiliate and for tax evasion.
He later was fined and sentenced to a suspended three-year prison term. Lee, who holds a spot on the International Olympics Committee, also voluntarily gave up his rights and duties as an Olympics committee member in the wake of the indictments.
The government decided to pardon Lee to allow him to resume his role lobbying to secure the 2018 Winter Olympics for PyeongChang, a mountain resort east of Seoul.
The bid is the Asian nation’s third to host the Winter Games. Seoul hosted the Summer Olympics in 1988.
“The nation’s business and sports circles have demanded a special pardon for former chairman Lee, citing the need to boost Pyeong Chang’s ongoing bid for the 2018 Winter Olympics,” Justice Minister Lee Kwi-nam said at a news conference.
He said the pardon takes effect Thursday.
Smoke disrupts Nasdaq floor trading
PHILADELPHIA - Trading on the floor of the Nasdaq stock market’s Philadelphia Stock Exchange was halted for an hour because of smoke.
The exchange, known as Nasdaq OMX PHLX, handles options trading.
Nasdaq OMX Group said its employees were evacuated.
The Philadelphia Fire Department was trying to determine the origin of the smoke.
Trading was halted at 11:05 a.m. Tuesday, and all smoke had been cleared from the floor by 12:05 p.m., and trading resumed about 35 minutes later, NASDAQ OMX said in a statement.
Nasdaq acquired the Philadelphia Stock Exchange, the nation’s oldest stock exchange, in July 2008.
Business, Pages 30 on 12/30/2009