Glenn Murphy’s sacrifices in 2009 came back to him with interest in 2010.
Murphy, chairman and chief executive officer of Gap Inc., saw his overall pay package grow 18 percent last year, to $5.9 million from $5 million in 2009. After he voluntarily reduced his salary 15 percent, or $225,000, in 2009, it returned to its regular level of $1.5 million in 2010. And in appreciation of both his stewardship of the San Francisco-based firm and his willingness to earn less “given a highly uncertain business environment,” Gap’s compensation committee awarded him a special bonus of $635,000.
Although his nonequity incentive plan compensation was cut by slightly more than half to $1.7 million, he was granted $1.8 million in stock awards, versus none the year before. He received no option awards in 2009 or 2010. Other compensation expanded 18 percent to $281,000 from $163,000.
Because of fluctuating stock prices and vesting schedules, stock and option awards aren’t necessarily realized by the named executive officer, but companies are required to include them in the compensation tables when submitting proxies to the Securities and Exchange Commission, as Gap did on Tuesday.
Last year, Gap’s profits increased 9.3 percent, to $1.1 billion, while sales rose 3.3 percent, to $14.66 billion, and improved 1 percent on a same-store basis.
In a another SEC filing Tuesday, Ann Inc. reported that Kay Krill registered a 13.4 percent increase in total compensation last year, as her bonus and stock awards followed the company’s earnings trajectory upward.
Krill, president and ceo of the company previously known as AnnTaylor Stores Corp., earned a total of $10.3 million last year, up from $9.1 million in 2009. Her salary was unchanged at $1.2 million, but her bonus grew 18.9 percent to $5.2 million, from $4.3 million, and the sum of her stock and option awards was up 14.5 percent to $3.9 million, from $3.4 million, despite a 30.4 percent decline in option awards to $1.2 million.
Krill’s “other” compensation dropped to $16,000 from $101,000 in 2009. Last year, car service accounted for just under $10,000 of that total, down from $36,000 in 2009, and the reimbursement for taxes in connection with car service, nearly $29,000 in 2009, was waived entirely.
The proxy highlighted the recent improvement in Ann’s performance, noting that while its operating profit rose 352 percent and its stock price was up 74 percent last year, the total compensation for all “named executive officers, including the ceo,” was up a far more modest 11 percent and the ceo’s total compensation grew 13 percent.
In the fiscal year ended Jan. 29, the company swung to a profit of $73.4 million from a net loss of $18.2 million in 2009, while revenues increased 8.3 percent to $1.98 billion.
Alberta Ferretti's "Rainbow Week" sweaters are back. The designer closed her #MFW show with a few day-of-the-week sweaters, which first debuted on the catwalk last January as part of the pre-fall 2017 collection. #wwdfashion (📷: @delphineachard)