DOW JONES NEWSWIRES 
 

Mattel Inc. (MAT) will bring its executive-severance plan in line with current practices, eliminating individual contracts for executives under the chief executive.

As a result, the toy maker won't renew contracts for three top executives - Chief Financial Officer Kevin Farr, President of Mattel Brands Neil Friedman and Executive Vice President of Worldwide Operations Thomas Debrowski - after their pacts expire in 2011 and 2012, the toy maker said in a Securities and Exchange Commission filing.

However, Mattel said it expects the three men to remain employed with the company beyond those expiration dates.

Under the new plan, executives terminated without cause or leaving for "good reason" will get a severance package based on their recent compensation packages. Other benefits include full vesting of all stock options granted after the executive's eligibility date under the plan for up to three years and up to two years of health-insurance coverage.

Mattel and rival toy makers are looking to rebound from the worst holiday shopping season in recent years. That weakness continued in the first quarter for Mattel, which reported a wider first-quarter loss as revenue decreased worldwide.

Shares were down 4.2% to $15.67 in recent trading, amid a broad decline.

-By John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com