Sears sets Edward Lampert's salary as CEO at $1

Sears Holding Corp. says it has signed a contract with Edward Lampert to keep him on as CEO of the company at a salary of $1 per year.

A regulatory document shows that the billionaire hedge-fund manager will be paid an annual base salary of $1, but with the opportunity for a bonus of up to $2 million and up to $4.5 million in stock per year.

Sears announced in January that Lampert would take over as CEO after Louis J. D'Ambrosio stepped down due to health issues involving his family. Lampert is the chairman and largest shareholder of the Hoffman Estates, Ill., company.

Shares of the operator of the Sears and Kmart stores slipped 57 cents to $51.73 in midday trading, in line with the broader market.