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.
"'Dynasty' is all about gowns, the diamonds and the scandal, so it's a bit like the fashion industry. When we come to Cannes it's all about the red carpet dresses too, so it all fit really well," said designer @philippplein78 on the theme of his high-glamour resort 2019 show at his mansion in Cannes. #wwdfashion #cannes (📷: @zefashioninsider)
"I think Spike is such a brilliant director because he holds up a mirror to society and reflects these issues, yet he doesn't shove it down your throat, he doesn't tell you what to think," says @lauraharrier on her latest film @Blackkklansman. Harrier was at the Cannes Film Festival – for the very first time – with @officialspikelee. #wwdeye #cannes (📷: @zefashioninsider)
“I would think to myself, Are you happy? Yes, I’m wildly happy. I go to this studio every day and, in my inside voices, I’m giggling; I’m singing. Yes, it’s a lot of work, it’s a [huge] volume of material. It wouldn’t be for everybody. But I was very happy,” said soap opera star @therealsusanlucci of checking in throughout the years with her career trajectory. Lucci spoke to WWD about her decades-long career, love for pilates, motherhood and her QVC activewear line. Read Bridget Foley’s full piece on Lucci on WWD.com #wwdfashion (📷: @celestesloman)
@balmain has taken a stand at the #cannes Film Festival, dressing 16 actresses at a press call for the project “Noire N’est Pas Mon Metier,” or “Black Is Not My Profession.” The multimedia project includes a book, photo exhibit and documentary, which aims to expose discrimination in the French and American entertainment industries. “The moment I was asked to participate, I knew it was right for me, and for this brand, to form a part of this moment,” Balmain creative director @olivier_rousteing told WWD. #wwdnews #wwdfashion
"I always feel curious and I feel like there's more to learn. But I think being relevant, feeling relevant, I personally always feel that there's just so much more to know. And maybe that's the key.” — @themarcjacobs #wwdsummits #wwdbeauty (📷: @patrickmacleodphoto )
“The most amazing thing about her is that, regardless of all the things that have happened to her, her spirit is so undaunted by all of it. She is the most cheerful person you will ever meet. She doesn’t see problems, she only sees solutions,” said @ajanaomi_king of activist Ifrah Ahmed, who she plays in a new film “A Girl from Mogadishu.” WWD caught up with King at Cannes — Head to WWD.com to read more about her new role, personal style and how she uses social media for causes like Time’s Up and Black Lives Matter #wwdeye
WWD asked a number designers to share their thoughts on what Meghan Markle’s wedding gown will look like this Saturday. Here, Valentino’s Pierpaolo Piccioli sketches his look. #wwdfashion #royalwedding #meghanmarkle