PhillyInc

Sure, shareholders in Pathmark Stores Inc. (NASDAQ: PTMK) may do just fine from the company's merger with Great Atlantic & Pacific Tea Co. (NYSE: GAP). But most likely they won't do as well as Pathmark CEO John Standley. According to SEC filings today, Standley is entitled to receive a cash payment of $3.6 million and receive 249,900 shares of restricted stock worth about $3.2 million -- immediately vested. A Pathmark spokesman told PhllyInc that Standley and other top executives have not said yet whether they will stick around following the merger. Top executives often negotiate these "change in control" provisions into their employment contracts. Great Atlantic CEO Eric Claus is heading up the combined company, which still faces the daunting task of competing against bigger chains including Wal-Mart Stores Inc. (NYSE: WMT). Karen Short, an analyst with New York-based Friedman Billings Ramsey & Co., recently told Bloomberg News. "These are two companies that have been struggling. This makes them struggle less. These companies aren't profitable as standalone'' entities. Pathmark is based in Carteret, N.J. and Great Atlantic is based Montvale, N.J. The combined company will have revenue of $11 billion and 550 stores. -- Jonathan Berr