October 21, 2009, 12:00 AM

Bluefly sets a bonus plan for top executives

The web-only retailer of fashion apparel at discount prices approved recently a 2009 cash bonus plan with a combined value as high as $473,000 for CEO Melissa Payner-Gregor and chief financial officer Kara Jenny.

Bluefly Inc., a web-only retailer of fashion apparel at discount prices, has approved a 2009 cash bonus plan with a combined value as high as $473,000 for CEO Melissa Payner-Gregor and chief financial officer Kara Jenny.

The bonus plan, which has been approved by the compensation committee of Bluefly’s board of directors, provides for a cash payment of $125,000 this month to Payner-Gregor, plus cash payments of $75,000 to Payner-Gregor and $33,000 to Jenny “promptly” after the company’s Dec. 31, 2009, fiscal year end.

In addition, the plan calls for contingent bonuses of up to $180,000 for Payner-Gregor and up to $60,000 for Jenny if the company achieves specified levels of adjusted EBITDA, or earnings before costs related to interest, taxes, depreciation and amortization. The bonus plan announcement, which did not reveal those specified levels of EBITDA, said the contingent bonuses, if any, will be awarded “as soon as practicable” following the company’s audited annual financial statements but no later than March 15, 2010.

All sums to be awarded under the bonus plan are subject to conditions, including the continued employment of Payner-Gregor and Jenny at year-end.

Bluefly, which sells on the web at Bluefly.com and is No. 132 in the Internet Retailer Top 500 Guide, reported operating income of $161,000 in the second quarter ended June 30, the first time it showed an operating profit outside of a fourth quarter, the company says.

It reported a net loss for Q2 of $186,000, down from a net loss of $2.04 million a year earlier, as Q2 net sales fell 15% to $19.86 million from $23.33 million. For the six months ended June 30, net loss was $3.31 million, down from $4.97 million a year earlier, as net sales fell 18% to $39.76 million from $48.58 million.

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