By Becky Yerak | The interim chief executive of Sears Holdings Corp. was paid $1.5 million in 2009, down from $1.9 million in 2008.

Bruce Johnson, 58, who has held the post at the Hoffman Estates-based
retailer since February 2008, saw the value of his stock awards drop
from $999,918 to $663,400, according to the proxy filed Tuesday morning
with the Securities and Exchange Commission.

In response to cost reduction efforts undertaken in January 2009, Johnson volunteered to reduce his base salary from $900,000 to $850,000 during fiscal 2009, the proxy said.

On Monday, Sears’ compensation committee boosted Johnson’s annual base salary to $1 million effective immediately.

Johnson has also been nominated as a director of Sears. He was previously the company’s executive vice president of supply chain and operations since the merger with Kmart. He joined Kmart in October 2003 in a similar capacity.

Sears said it also plans to reduce the size of its board from eight to seven members. Two current directors, William Crowley and Kevin Rollins, won’t stand for reelection.

Johnson will also will receive an award of 40,000 shares of restricted stock under the company’s 2006 stock plan immediately that’ll vest in four equal annual installments, provided that he remains an employee. Sears will also furnish him ground transportation to Sears headquarters.

Edward Lampert, 47, chairman of Sears and CEO of ESL Investments Inc., which owns 57 percent of Sears, didn’t take any compensation from Sears in 2009.

Sears recently posted its best quarterly profit in three years, fueled by improved sales at Kmart and cost cuts.