Wet Seal to Take Major Charges for Pay Package

Apparel retailer Wet Seal Inc. laid out the terms of a consultant’s compensation package that would result in significant charges over the next 18 months.

The company’s shares slid 2.7% to $5.77 in after-hours trading after the announcement. It closed at $5.93 in regular trading.

Michael Gold, who has served as a consultant to Wet Seal since last year, will earn $2.8 million this year and $1.2 million next year. He also will be awarded 2 million shares of restricted stock and two installments of performance shares of 1.75 million each, the company said.

Wet Seal expects to take significant charges in all quarters through January 2007 related to the compensation agreement.