Blake Nordstrom saw his cash and total compensation fall last year — by 29 percent and 34.6 percent, respectively — as the Seattle-based retailer’s operating income fell short of target levels set by its board’s compensation committee.
Total compensation fell to $3.9 million from $6 million in 2011, while cash compensation slipped to $1.6 million from $2.3 million, according to the definitive proxy statement Nordstrom Inc. filed with the Securities and Exchange Commission on Monday.
Nordstrom, president of the store that bears his family name, received an increase in salary, up 1.7 percent to $710,000 from $698,000 in 2011 — while his cash bonus, or nonequity incentive plan compensation in the parlance of proxy statements, dropped 42.8 percent to $892,000 from $1.6 million in the prior year.
In 2011, Nordstrom exceeded target levels for earnings before interest and taxes, and Nordstrom’s cash bonus was in excess of the mark of 150 percent of his salary. Last year, however, strong sales were “offset by increased operating expenses and incremental investments in marketing and technology,” and EBIT rose 7.7 percent to $1.35 billion, above the $1.3 billion minimum performance milestone but below the target mark. Like Blake Nordstrom, his brothers Peter Nordstrom, executive vice president of the company and president of merchandising, and Erik Nordstrom, executive vice president and president of stores, received 85 percent of their target bonus amounts. In all three cases, the target bonus amount equals 150 percent of their base salaries of $700,000 each.
For the current fiscal year, the compensation committee lifted the bonus target amounts for the three brothers to 200 percent of base salaries from 150 percent, and the maximum cash bonus was raised to 500 percent from 250 percent. As before, executives are only eligible for cash bonuses if return on invested capital thresholds are met or exceeded.
Nordstrom’s net income last year rose 7.7 percent to $735 million, while sales were up 12.1 percent to $11.8 billion.
Blake Nordstrom’s stock and bonus awards fell fractionally last year, to $1.39 million from $1.393 million. The most substantial decline in his compensation came from the actuarial column headed “change in pension value and nonqualified deferred compensation earnings,” which fell 61.1 percent to $879,000 from $2.3 million in 2011.
Because of vesting schedules and fluctuating stock values, stock and option awards aren’t necessarily realized by the named executives but, in accordance with SEC requirements, are reported to the SEC at “grant date fair value.”
Peter and Erik Nordstrom’s total compensations fell 35.8 and 35.2 percent, respectively, to $3.75 million and $3.7 million.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast