by Ronnie Dungan
Toys R Us has confirmed that chief executive, John Eyler and its COO, Chris Kay, will step down when the company is acquired by private investors.
Eyler andKay will stay until the sale closes, probably at the end of July, said a spokeswoman for the firm. Richard Markee, vice chairman of the company and president of Babies R Us, will act as interim chief executive when Eyler leaves.
On completion of the buyout, Eyler will receive about $65.3 million, including $7 million accrued in a deferred compensation account, while Kay will receive about $14.7 million, including $1.3 million from his deferred compensation account.
Shareholders of Toys R Us are expected to approve the $6.6 billion sale at a meeting in New York tomorrow. The buyers are two private equity firms, Bain Capital and Kohlberg Kravis Roberts & Company, and a real estate developer, Vornado Realty Trust. Shareholders will receive $26.75 a share under the deal, which was approved by the board of Toys R Us in March.