By Matt Andrejczak

Hasbro Inc.'s (HAS) chief executive has signed a more lucrative employment contract with the world's No. 2 toy maker, with a fatter base salary along with retention compensation.

Brian Goldner agreed to serve as Hasbro's chief through 2014 under his amended contract, according to a Securities and Exchange Commission filing made public Tuesday. The company increased his base salary to $1.2 million on Feb. 1, up from $1 million. It also sweetened the pot with two one-off retention awards, on top of the annual equity awards he bagged in February.

Hasbro awarded Goldner 125,000 performance share units to be earned based on the toy maker's financial performance from 2010 through 2012.

The executive also netted 687,000 stock options, carrying an exercise price of $38.39 a share. The options will vest in five equal installments in March 2011 through 2014.

The agreement replaces a May 2008 deal, when Goldner was promoted to the top post from chief operating officer. His original employment contract was set to expire in May 2011. In the restated contract, Hasbro said it wished to secure an "enhanced noncompetition commitment" from Goldner.

Since Goldner became chief, Hasbro shares are up 14%. He has strengthened Hasbro's ties with Hollywood movie studios and struck a joint-venture deal with Discovery Communications Inc. (DISCA) to launch a new kids' cable-television network.

Dubbed "the Hub," the network will make its debut this fall and offer Hasbro a broader platform to promote its brands. Movies and cable TV are seen as vehicles to turn Hasbro into more of an entertainment company, rather than just a toy maker.

On the movie side, Hasbro sold $592 million of Transformers action figures in 2009--toys made for last summer's blockbuster-movie sequel. The sales marked a 23% increase over the previous line of action figures tied to the 2007 "Transformers" movie.

In 2009, Hasbro shares rose 9%, compared with the 25% gain for rival Mattel Inc. (MAT).

So far in 2010, other incentive pay collected by Goldner includes 312,094 in options and 36,698 in shares for meeting specific earnings and revenue targets since 2007.

Hasbro has yet to file its proxy statement detailing 2009 executive pay.

-Matt Andrejczak; 415-439-6400; AskNewswires@dowjones.com