Lower profits at Coach Inc. last year took a toll on the pay packages of Lew Frankfort and Reed Krakoff.
This story first appeared in the September 28, 2009 issue of WWD. Subscribe Today.
Frankfort, chairman and chief executive officer, saw his compensation slip 22.1 percent to $7.5 million for the fiscal year ended June 27, while Krakoff’s pay package fell 19.9 percent to $17.9 million. Krakoff is president and executive creative director of the New York-based accessories firm. Their salaries increased to $1.2 million and $2.5 million, respectively.
Neither executive qualified for nonequity incentive plan compensation, whereas in 2008, Frankfort qualified for $1.6 million and Krakoff for $4.1 million. Krakoff received a $4.6 million bonus not related to performance, down from $5 million the prior year, as stipulated in his contract. Frankfort received none.
Stock and option awards totaled $5.9 million for Frankfort, down from $6.5 million during the prior year, and $10.1 million for Krakoff, down from $10.3 million in fiscal 2008. Because of vesting schedules and falling stock prices, stock and option awards weren’t necessarily realized.
The figures were contained in the definitive proxy Coach filed Friday with the Securities and Exchange Commission. It stated that officers’ salaries will be frozen in fiscal 2010 and that Krakoff had declined the 5 percent salary hike for the current year guaranteed in his contract.
Coach’s net income from continuing operations last year fell 20.4 percent to $623.4 million as sales rose 1.6 percent to $3.23 billion.