Pillsbury Co. has agreed to pay its...

Pillsbury Co. has agreed to pay its former chairman $75,000 a month for two years, a source close to the Minneapolis-based company said. The food company, which is reorganizing after a decline in its annual earnings to $69.7 million, will also provide John Stafford, who resigned as chairman in February, with a retirement benefit estimated at $30,000 to $56,000 a year for life, according to a proxy statement. Pillsbury said it would pay new Chairman Philip Smith an initial base salary of $625,000 a year, plus at least $375,000 in 1989 under an incentive plan. The food company owns Burger King and other restaurant chains and Green Giant and Haagen-Dazs food lines.