Goodman's departure Aug. 26 coincided with a reshuffling of the company's board as well as significant second-quarter losses in 2014 that caused stock to plummet 29 percent.
Wet Seal projected a quarterly loss of $22 million and a 12 percent drop in revenue.
Meanwhile, hedge fund manager Clinton Group recently gained seats on the company's board of directors and has pushed for leadership changes.
Goodman was replaced by former chief executive Edmond Thomas, 61, who will take over the position Monday. His base salary was set at $975,000, though he is eligible to receive performance bonuses.
Thomas was most recently partner of KarpReilly, LLC, a private investment firm. He served as Wet Seal CEO from October 2007 to January 2011.
As part of his severance package, Goodman is set to receive $819,200 in cash less legal deductions as well as 100,000 shares in Wet Seal.