The total compensation of Neiman Marcus Inc. president and chief executive officer Burt Tansky rose 16.3 percent to $3.9 million for fiscal 2009, according to the retailer’s annual report filed with the Securities and Exchange Commission.
This story first appeared in the October 22, 2009 issue of WWD. Subscribe Today.
The ceo’s salary was about the same as last year at $1.5 million and the value of his option awards was unchanged at $1.5 million. The big adjustment came in the value of his pension and deferred compensation, which rose to $786,000 from $205,000 in 2008.
Karen Katz, executive vice president as well as president and ceo of the Neiman Marcus division, also saw an increase in pension valuation as her total compensation rose 27.5 percent to $2.5 million. Compensation for James Gold, president and ceo of the Bergdorf Goodman division, fell 9.1 percent to $1.2 million. He received a cost of living adjustment for relocating to New York from Texas, which totaled $186,921 when annualized.
The highly indebted company, which had losses of $668 million for the year ended Aug. 1, continued to turn to its vendors for markdown money.
The retailer said it received $107.7 million in vendor allowances, equaling 3 percent of revenues for the year. The company had vendor allowances of $109.6 million, or 2.4 percent of revenues, in fiscal 2008, and $96.1 million, or 2.2 percent of revenues, in 2007.
“Certain allowances are received to reimburse us for markdowns taken or to support the gross margins that we earn in connection with the sales of the vendor’s merchandise,” said the company. “These allowances result in an increase to gross margin when we earn the allowances and they are approved by the vendor.”
Other allowances represent reductions in the amount the company pays on later orders.