Specialty apparel retailer Wet Seal Inc paid axed CEO Kathy Bronstein more than $3 million in compensation to settle her claims, according to a company filing, The Los Angeles Times reported Tuesday.

The paper said Bronstein, who was fired in February, did not file a lawsuit but sought damages for wrongful termination, "retaliatory discharge", gender discrimination, fraud, invasion of privacy and emotional distress.

It added the firm decided to settle out of court partly to avoid a costly legal fight and said it would also allow her to exercise 405,000 previously vested unexercised stock options, which at Monday's closing price would total $4.15m.