Penn Traffic, Chairman Kelly Terminate Agreement

SYRACUSE, N.Y. -- Now that it has named a new chief executive officer, Penn Traffic Co. here said it would end a management consultant contract with its chairman, Robert J. Kelly. According to government filings, Kelly entered into an advisory contract in late June, performing services customarily performed by a CEO, that could have earned him as much as $120,000 every three months. That deal was made approximately three months before former CEO Robert Chapman resigned from the company. Penn Traffic earlier this month named Bob Panasuk as its new CEO. Panasuk will be paid a yearly salary of $500,000, Penn Traffic said in a Securities and Exchange Commission document filed this week. Gregory Young, named chief operating officer, will receive an annual salary of $400,000, the company added.