Ralph Lauren backed up a 25.7 percent increase in compensation lastyear with an $857.1 million payday for the conversion and sales of someof his Class B voting shares last month.
Lauren’s reportedcompensation as chairman and chief executive officer of Polo RalphLauren Corp. rose to $27.7 million in fiscal 2010 from $22 million in2009, but still fell nearly $3 million short of the $30.6 million heearned in 2008.
And the conversion of a portion of his Class Bshares and their subsequent sale to the public and firm resulted in an$857.1 million windfall, Polo officials told WWD. Adjusting for brokers’fees, 9 million shares were sold to the public at about $78 each and950,000 shares were provided to the underwriters to cover overallotmentsfor the same amount. Additionally, Lauren sold 1 million shares to thefirm that bears his name at the established price of $81 each.
Lauren’spay package was revealed in the definitive proxy filed by Polo with theSecurities and Exchange Commission Thursday. His salary was unchangedat $1.25 million, but his nonequity incentive plan compensation rose40.4 percent to $19.5 million from $13.9 million in 2009, accounting forthe bulk of his increase.
Other compensation rose 69 percentto $676,000, including $558,000 for reimbursement of personal travel.
Thesum of Lauren’s stock and option awards fell 3.5 percent to $6.3million from $6.5 million. Because of vesting schedules and fluctuatingstock prices, these awards aren’t necessarily realized by theexecutives, but companies are required to report them at grant date fairvalue to the SEC.
Stripping out the noncash awards component,Lauren earned $21.4 million this year, 37.9 percent higher than in 2009.
Lauren, whose net worth was estimated at $4.6 billion by Forbesmagazine prior to the stock sale, is listed in the proxy as the ownerof 2.1 percent of the company’s Class A common stock and 91 percent ofits Class B voting stock. The Lauren family owns all of the votingstock, although the number of Class B shares was reduced as a result ofthe recent stock offering.
In the proxy, Roger Farah, presidentand chief operating officer, was reported to have earned $19.3 millionlast year, about six times the $3.3 million reported for the prior year.Farah collected $9.9 million in nonequity incentive plan compensation,versus $2.2 million in 2009, and he received stock and option awardstotaling $8.4 million, versus none in the prior year.
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Only three months after her stellar debut catwalk season, @kaiagerber has inked her first big design collaboration –– with @karllagerfeld. The collection blends Lagerfeld’s Parisian chic aesthetic and the model’s signature West Coast casual style via RTW, accessories, footwear and more. The #KarlLagerfeldxKaia collection will launch in September with a series of events. Get all the details on WWD.com. #wwdnews #wwdfashion
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews