WWD.com/beauty-industry-news/financial/wachner-s-dual-income-for-93-totals-3-million-1157276/
government-trade
government-trade

Wachner’s Dual Income for ’93 Totals $3 Million

NEW YORK -- Despite missing her bonus at The Warnaco Group, Linda J. Wachner, chief executive officer of both Warnaco and Authentic Fitness Corp., was paid a total salary of $3 million plus stock options for her services at both companies last...

NEW YORK — Despite missing her bonus at The Warnaco Group, Linda J. Wachner, chief executive officer of both Warnaco and Authentic Fitness Corp., was paid a total salary of $3 million plus stock options for her services at both companies last year.

According to the just-released proxy for Warnaco’s annual meeting, Wachner received a 26.9 percent hike in base salary at Warnaco to $2.36 million in 1993 from $1.86 million in 1992. The Warnaco meeting is slated for May 12.

However, Warnaco did not pay executive bonuses last year because of special charges to restructure its men’s wear operations. Her annual bonus was $1.3 million in 1992 and 1991.

Wachner, who is one of the highest paid ceo’s in the apparel industry, also received stock options of 500,000 Warnaco shares at $31 5/8 each and 200,000 shares at $36 5/8.

At Authentic Fitness, where the fiscal year ended June 1993, Wachner earned $675,000 as salary, plus 100,000 stock options exercisable at $8 a share, it was shown in that company’s proxy statement.

For her services to Authentic Fitness in fiscal 1991 and fiscal 1992, Wachner received a lump sum payment of $1.7 million in July 1992.

Wachner, who has yet to sell any stock in either company since taking both public, holds a 13.8 percent stake in Warnaco, or 3,023,000 shares currently valued at $101 million, and an 8.6 percent stake in Authentic Fitness, or 909,897 shares valued at $24 million.

Warnaco went public in October 1991 at $20 a share. Authentic Fitness reached the market in June 1992 at $16 a share and has since split its stock two-for-one.

Wachner also has a good start on her fiscal 1994 tally, receiving, as noted, a $2.5 million bonus in December 1993 related to Authentic Fitness’s October acquisition of the Catalina/Cole swimwear assets from Taren Holdings Inc.