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.
"I was driving back on Saturday afternoon from the beach, and I just saw this sign saying 'Skydiving for $95.' And I was like, I can't not sky dive for $95," says Tom Bateman about a moment in Hawaii while shooting "Snatched." #wwdeye (📷: @victoriastevens; Interview by @ktauer; Styled by @thealexbadia)