(Reuters) - U.S. bookstore chain Barnes & Noble Inc (BKS.N) has been forced to retract 500,000 stock options issued to Chief Executive William Lynch after breaking its own rules on the amount of options it can grant an employee in a three-year period.
The original grant was for a million options, which along with cash components and other stock grants would have given Lynch compensation in fiscal 2012 of $15.3 million, up from $1.6 million a year earlier, Barnes & Noble said in a regulatory filing on Monday.
Half of these options would now be deemed “ineffective”, giving Lynch compensation of $10 million in fiscal 2012, it said.
Barnes & Noble has put a proposal to shareholders that will allow it to grant the remaining 500,000 stock options to Lynch. Shareholders will vote on the proposal at the company’s annual meeting on September 11.
Reporting by Neha Alawadhi in Bangalore; Editing by Richard Pullin