Top apparel CEOs saw their compensation plunge in 2013 compared to the prior year, according to proxy statements filed by 24 of the largest publicly-traded apparel and footwear companies. Total sales at these firms–which include Gap Inc., VF Corporation, Under Armour, UGG maker Deckers, PVH, American Eagle, Buckle, Ann Inc., Zumiez, and many others–were flat compared to the prior year, and the lack of topline growth made profitability elusive. Earnings dipped by a collective 15 percent, after surging by 53 percent in the prior year. Pay packages–particularly the bonus and stock portions of them–are often tied to results, so many of these CEOs are paying the price for their companies’ failure to meet aggressive share gain objectives set by boards. The total compensation earned by CEOs at these companies slipped 16% from $220 million in 2012 to $184 million. More of the CEOs had decreases in their compensation than increases.
Gap Inc.’s Glenn Murphy was the highest paid apparel CEO for the second straight year, though his compensation of $18.7 million was 24 percent lower than in 2012 due to a $4 million decline in stock awards. The company’s sales rose 3 percent to $16 billion, and earnings were up 15 percent. Gap stock price rose 25 percent during the year.
And apparently the Men’s Wearhouse board liked the way the numbers looked: Doug Ewert took home a cool $3.6 million, a 73 percent increase over the CEO’s prior year package, though sales were flat and earnings dove 36 percent.
PVH CEO Manny Chirico was the second highest paid apparel CEO in 2013, with a total compensation package of $18.3 million, up 48% from 2012, largely because of a sizable stock award. Company sales jumped 40% to $7.8 billion largely due to the acquisition of Warnaco. Net income fell 67% from the prior year, to $143 million.
Les Wexner of Victoria’s Secret parent L Brands earned $15.9 million, a 17 percent drop from 2012. His company’s earnings jumped by 20 percent. Most of Mr. Wexner’s compensation was in stock awards, but a significant amount was also in non-equity incentive compensation.
Another founder who had a significant payday during 2013 was Ralph Lauren. Although the company doesn’t issue its proxy statements until at least July, the Polo CEO received $26 million in compensation last July, $10 million less than the previous year. In that period, both revenues and earnings increase by over 20 percent.
After suffering a 9 percent pay cut in 2012, HSN CEO Mindy Grossman saw a sizable increase in 2013, with total compensation up 145 percent to $13.8 million, much of which was from stock awards. HSN’s sales rose 4.2% and earnings jumped 37 percent at the multichannel retailer and media company. HSN stock increased almost 12 percent in 2013.
Foot Locker saw sales of sneakers and athletic apparel in 2013 reach over $5 billion worth and rewarded CEO Ken Hicks accordingly. Hicks’s total package was $14 million tells people. Last year, he sold a cool $6.2 billion worth of sneakers and athletic apparel — 10 percent more than in the year prior, while earnings soared 43 percent. His total compensation was $11 million, a 21 percent decrease from 2011. The company’s stock appreciated 31 percent in the year.
Under Armour founder and CEO Kevin Plank saw his compensation more than double to $3.2 million after revenue grew 27 percent to $2.3 billion and earnings jumped 26 percent. Plank received $785,000 in stock awards last year, compared to zero in 2012. Under Armour stock gained gained 81 percent in 2013.
Among those who got pay cuts in 2013, teen specialty apparel CEOs felt a particularly big pinch. American Apparel’s Dov Charney saw his compensation plunge by 92 percent to a little over $1 million. Abercrombie’s Michael Jeffries earned $2.2 million, down 73 percent from the prior year, and Buckle’s Dennis Nelson’s total pay package dropped 67 percent to $2.8 million. American Eagle’s Jay Schottenstein’s take-home was $8.3 million, 28 percent below the prior year.
Children’s Place CEO Jane Elfers’s compensation package was $6.8 million, down more than 60 percent from 2012’s level, as sales dipped 2 percent and earnings dropped by 16 percent for the year.
Macy’s CEO Terry Lundgren received $12 million, down 13 percent from the almost $14 million he earned in 2012. During that time, Macy’s sales increased 4 percent and earnings rose by almost 37 percent. Another top department store CEO, Bill Dillard, earned $5.8 million, 29 percent above 2012, despite low-single-digit drops in both revenue and earnings.
Other CEOs suffering double-digit pay cuts last year were Express’s Michael Weiss who saw his pay fall 37 percent to $6.2 million — not a bad year even though earnings dropped 16 percent. VF Corporation’s Eric Wiseman got a 17 percent pay cut, to $11.8 million, though sales and net income rose 5 percent and 11.4%, respectively. VF stock gained 66 percent during the year.
After his company’s earnings plunged by nearly 200 percent, Kate Spade (formerly, Fifth and Pacific) CEO Bill McComb made $5.8 million, down 29 percent from 2012. Company sales rose by 21 percent. The brand portfolio now contains only its namesake, after selling off Liz Claiborne, Juicy Couture, Lucky Brand and many others in the past few years.
JCP CEO Mike Ullman made $2.4 million in 2013, 27 percent more than the total CEO pay shared by him and oustered CEO Ron Johnson in 2012. Although sales fell by 9 percent in 2013 to almost $12 billion, the net loss narrowed by almost 41 percent to $1.4 billion.
Sears Holdings CEO Eddie Lampert earned $4.3 million, compared to nothing the previous year, for continuing to sell off assets. Sales fell by nearly 10 percent to $36 billion, and the loss worsened to $1.4 billion from $930 million in the prior year.
Zumiez’s CEO Richard Brooks was the lowest paid in the group, with a total compensation of $856,000 in 2013, down 20 percent from the previous year as both sales and earnings rose by about 8 percent.