J. Crew's Jenna Lyons scores $1M package on the way out

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In the c-suite or out, Jenna Lyons is getting paid.

The lightening rod president and executive creative director at J. Crew Group Inc., who was downgraded to "adviser" this week — is set to continue to receive her salary for a year after her contract expires on Dec. 9.

"In recognition of the good will that each of Ms. Lyons and the company have for each other, although not required pursuant to the terms of [her 2010] employment agreement, the company will pay to Ms. Lyons separation pay consisting of base salary continuation and reimbursement of health care premiums for the one-year period following her separation date," the company said in a regulatory filing this week.

That's a cool $1 million, plus health care, for Lyons for the year. (Last year, she received a $1 million salary as well as a $400,000 bonus and $10,600 in other compensation.)

That pay could be reduced if Lyons gets money from a new employer although she agreed not to compete with J. Crew for six months.

28 PHOTOS
Jenna Lyons' style through the years
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Jenna Lyons' style through the years
Designer Jenna Lyons pose for photographs in the J Crew at the Beach store in Malibu April 21, 2009. (Photo by Ann Johansson/Corbis via Getty Images)
NEW YORK - JUNE 01: Executive Creative Director of J. Crew, Jenna Lyons attends the opening of the J.Crew Bridal Boutique hosted by Darcy Miller at J.Crew Bridal Boutique on June 1, 2010 in New York City. (Photo by Astrid Stawiarz/WireImage for J. Crew)
NEW YORK - SEPTEMBER 09: Jenna Lyons attends the Billy Reid Spring 2011 presentation during Mercedes-Benz Fashion Week at Milk Studios on September 9, 2010 in New York City. (Photo by Duffy-Marie Arnoult/WireImage)
NEW YORK, NY - SEPTEMBER 13: Creative Director and President of J. Crew Jenna Lyons poses backstage at the J.Crew Spring 2012 fashion show during Mercedes-Benz Fashion Week at The Studio at Lincoln Center on September 13, 2011 in New York City. (Photo by Cindy Ord/Getty Images for Mercedes-Benz Fashion Week)
Jenna Lyons attends the 2011 CFDA Fashion Awards at Alice Tully Hall, Lincoln Center on June 6, 2011 in New York City.
NEW YORK - NOVEMBER 15: Jenna Lyons attends the 7th Annual CFDA/Vogue Fashion Fund Awards>> at Skylight SOHO on November 15, 2010 in New York City. (Photo by Ben Gabbe/Getty Images)
NEW YORK, NY - SEPTEMBER 11: J.Crew President and Creative Director Jenna Lyons attends the J.Crew Spring 2013 Mercedes-Benz Fashion Week Show at The Studio Lincoln Center on September 11, 2012 in New York City. (Photo by Charles Eshelman/FilmMagic)
NEW YORK, NY - SEPTEMBER 09: Creative director and president of J.Crew Jenna Lyons arrives at the Derek Lam spring 2013 fashion show during Mercedes-Benz Fashion Week at St. John's Center on September 9, 2012 in New York City. (Photo by Vivien Killilea/Getty Images)
NEW YORK, NY - NOVEMBER 13: Jenna Lyons, J. Crew creative director arrives at The Ninth Annual CFDA/Vogue Fashion Fund Awards at 548 West 22nd Street on November 13, 2012 in New York City. (Photo by Rob Kim/Getty Images)
NEW YORK, NY - NOVEMBER 11: Jenna Lyons attends CFDA and Vogue 2013 Fashion Fund Finalists Celebration at Spring Studios on November 11, 2013 in New York City.� (Photo by Monica Schipper/FilmMagic)
NEW YORK, NY - JUNE 02: Jenna Lyons attends the 2014 CFDA fashion awards at Alice Tully Hall, Lincoln Center on June 2, 2014 in New York City. (Photo by Dimitrios Kambouris/Getty Images)
NEW YORK, NY - SEPTEMBER 08: Jenna Lyons is seen outside the Rag and Bone show on September 8, 2014 in New York City. (Photo by Daniel Zuchnik/Getty Images)
NEW YORK, NY - FEBRUARY 15: J. Crew President and Chief Creative Director Jenna Lyons attends the Giulietta fashion show during Mercedes-Benz Fashion Week Fall 2015 at Pop14 on February 15, 2015 in New York City. (Photo by Cindy Ord/Getty Images)
NEW ORLEANS, LA - NOVEMBER 16: Jenna Lyons outside of the wedding ceremony of musician Solange Knowles and music video director Alan Ferguson at the Marigny Opera House on November 16, 2014 in New Orleans, Louisiana. (Photo by Josh Brastead/WireImage)
NEW YORK, NY - NOVEMBER 03: J.Crew executive creative director Jenna Lyons attends The 11th Annual CFDA/Vogue Fashion Fund Awards at Spring Studios on November 3, 2014 in New York City. (Photo by Gary Gershoff/WireImage)
NEW YORK, NY - APRIL 28: Jenna Lyons attends The Cinema Society & Audi screening of Marvel's 'Avengers: Age of Ultron' at SVA Theater on April 28, 2015 in New York City. (Photo by Jamie McCarthy/WireImage)
NEW YORK, NY - SEPTEMBER 12: Jenna Lyons attends the Mara Hoffman fashion show during Spring 2016 New York Fashion Week at The Gallery, Skylight at Clarkson Sq on September 12, 2015 in New York City. (Photo by Michael Stewart/WireImage)
NEW YORK, NY - SEPTEMBER 12: President of J.Crew Jenna Lyons attends the Altuzarra show during Spring 2016 New York Fashion Week at Spring Studios on September 12, 2015 in New York City. (Photo by Wendell Teodoro/WireImage)
NEW YORK, NY - SEPTEMBER 02: Jenna Lyons arrives at the 'Addicted to Fresno' Premiere at the SVA Theater on September 02, 2015 in New York City. (Photo by MPI99/Bauer-Griffin/GC Images)
NEW YORK, NY - NOVEMBER 09: Designer Jenna Lyons attends 2015 Glamour Women Of The Year Awards at Carnegie Hall on November 9, 2015 in New York City. (Photo by Jamie McCarthy/Getty Images for Glamour)
NEW YORK, NY - APRIL 26: Designer Jenna Lyons attends 2016 Time 100 Gala, Time's Most Influential People In The World - Cocktails at Jazz At Lincoln Center at the Times Warner Center on April 26, 2016 in New York City. (Photo by Larry Busacca/Getty Images for Time)
NEW YORK, NY - APRIL 13: Jenna Lyons attends 'The First Monday In May' World Premiere - 2016 Tribeca Film Festival - Opening Night at John Zuccotti Theater at BMCC Tribeca Performing Arts Center on April 13, 2016 in New York City. (Photo by Bennett Raglin/WireImage)
NEW YORK, NY - SEPTEMBER 20: Jenna Lyons attends the New York City Ballet 2016 Fall Gala at David H. Koch Theater at Lincoln Center on September 20, 2016 in New York City. (Photo by Dimitrios Kambouris/Getty Images)
NEW YORK, NY - SEPTEMBER 11: Fashion designer Jenna Lyons seen arriving to Prabal Gurung fashion show during New York Fashion Week: The Shows September 2016 at The Gallery, Skylight at Clarkson Sq on September 11, 2016 in New York City. (Photo by Gilbert Carrasquillo/GC Images)
NEW YORK, NY - FEBRUARY 02: Jenna Lyons attends the the New York premiere of the sixth and final season of 'Girls' at Alice Tully Hall, Lincoln Center on February 2, 2017 in New York City. (Photo by Jim Spellman/WireImage)
LOS ANGELES, CA - NOVEMBER 14: J.Crew President and Creative Director Jenna Lyons attends Glamour Women Of The Year 2016 at NeueHouse Hollywood on November 14, 2016 in Los Angeles, California. (Photo by Kevork Djansezian/Getty Images)
NEW YORK, NY - FEBRUARY 12: Fashion designer Jenna Lyons and Courtney Crangi are seen arriving to the Altuzarra fashion show during New York Fashion Week on February 12, 2017 in New York City. (Photo by Gilbert Carrasquillo/GC Images)
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Additionally, the company said it would fully vest Lyon's options and restricted stock options, although it's not clear just when she'll be able to take advantage of them since the company is privately held and working on a way to restructure its debt load.

The company added that, "Ms. Lyons will be required to sign a release of claims in connection with her receipt of separation payments."

Lyons, a 26-year veteran of J. Crew, was both criticized and lauded for her self-promoting style the brand, where she styled models with chunky glasses and straight hair to look like her and embraced a certain imperfection. At least for a time, she tapped into the zeitgeist, appearing on "Girls" and serving up styles repeatedly worn by then First Lady Michelle Obama.

But the business has suffered, both through merchandising missteps and a heavy debt load, which stems from the company's 2011 deal to be taken private by TPG and Leonard Green for $3 billion.

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