Scott Edmonds’ compensation more than doubled in his final year as chairman and chief executive officer of Chico’s FAS Inc., and the entire increase and more than half his pay were attributable to his severance package.
This story first appeared in the May 7, 2009 issue of WWD. Subscribe Today.
Edmonds, who stepped down as ceo in January to be succeeded by David Dyer, former Tommy Hilfiger and Lands’ End chief, saw his total compensation rise to $8.7 million last year, up about 130 percent from $3.8 million in 2007. Of the 2008 total, $4.4 million was related to “accrued post-termination benefits.” In addition, his stock and option awards totaled $3.1 million, up from $2.7 million in the previous year, according to the company’s proxy filing with the Securities and Exchange Commission.
Michele Cloutier, who was replaced as president of the Chico’s brand by Cynthia Murray in February, received almost $862,000 in severance, slightly less than half of her $1.8 million pay package. Including severance, her 2008 compensation rose 35.7 percent above 2007.
At Phillips-Van Heusen Corp., Emanuel Chirico, chairman and ceo, took a 26.5 percent pay cut last year to $4.9 million, including a salary of $1 million, incentive pay of $1.9 million and option awards valued at $1.8 million.
Allen Sirkin, president and chief operating officer, saw his compensation fall 36.2 percent to $2.7 million last year, while executive vice president and chief financial officer Michael Shaffer registered a 39.5 percent drop to $982,578.
Tom Murry, president and ceo of the Calvin Klein unit, took a 53.6 percent pay cut to $1.3 million, and vice chairman for wholesale apparel Francis “Ken” Duane saw a 33.1 percent drop in his compensation to $1.8 million.
Stock and option awards are reported based on SEC accounting guidelines. The amounts reported in these categories were not necessarily realized because of vesting schedules and changing stock prices.