Coach Inc.’s president and executive creative director Reed Krakoff outearned his boss, chairman and chief executive officer Lew Frankfort, by a better than two-to-one margin last year.
In a proxy statement filed on Friday with the Securities and Exchange Commission, Frankfort’s total compensation for the fiscal year ended June 28 was listed as $9.7 million, a 2.4 percent dip from $9.9 million a year ago. But Krakoff, his pay package enriched by a bonus for signing a new contract, earned $22.4 million in total compensation, up from $18 million in 2007.
Frankfort’s compensation includes a base salary of $1.2 million, a performance bonus of $1.6 million and $346,156 in other compensation. Frankfort also received stock awards valued at $1.1 million and stock options worth $5.4 million.
Krakoff’s compensation package includes a base salary of $2.3 million, a performance bonus of $4.1 million and other compensation of $607,529. He also received stock awards valued at $784,778 and stock options worth $9.5 million.
In addition, pursuant to his employment agreement, Krakoff received a contractual bonus per his employment agreement of an additional $5 million, up from $1.5 million in 2007. That contractual bonus consists of a $1.5 million payment plus an additional $3.5 million for agreeing to extend his contract for another three years. The extension of his employment agreement was entered into by Krakoff and Coach on March 11, according to the proxy.
Last year, Coach’s net income grew 18 percent to $783 million while revenues rose 21.8 percent to $3.18 billion. Fourth-quarter profits picked up even more. Net income was up 32.9 percent to $213 million and sales rose 19.8 percent to $781.5 million.