Apparel executives of U.S. publicly held companies with the highest annual compensation packages, including salary and bonus, but not long-term incentives.
Polo Ralph Lauren's chairman and chief executive officer, Ralph Lauren, has moved his way up to the top of WWD's annual ranking of apparel vendors, thanks to a 65 percent bump in bonus last year. Bonuses are typically a direct reflection of company performance — and Polo Ralph Lauren had a stellar year, increasing revenues by 24.7 percent to $3.3 billion, while profits were up 12.5 percent to $190.4 million. WWD's top 10 Money Men took home a collective $47.3 million last year. But without the Hilfiger boys in the mix (Tommy Hilfiger Corp. has yet to file a proxy), the total for the top 10 decreased by 31 percent from the year prior.
— Data compiled by Fairchild News Service, with contributions from Cecily Hall and Arthur Zaczkiewicz
1. Ralph Lauren, 65, Chairman, CEO, Polo Ralph Lauren 2004 compensation: $14.3 million Percent change from 2003: 58; salary: $1 million; bonus: $13.3 million; other compensation: $80,939 Lauren, who has been chairman, ceo and a director of the company since prior to its initial public offering in 1997, saw his pay increase 58 percent versus the prior year. At the company's annual meeting in August, initiatives for further growth were discussed, including the opening of two Double RL boutiques in New York City this fall and searching for locales with additional square footage in order to better showcase the Black Label line for both men and women.
2. Peter Boneparth, 45, President, CEO, Jones Apparel Group 2004 compensation: $4.6 million Percent change from 2003: 12.9; salary: $2.5 million; bonus: $2 million; other compensation: $107,183 Boneparth was provided with a bonus this past year, based on the following performance factors: net sales, operating income, earnings per share and operating cash flow. In addition, weight was given to the ongoing execution of Jones' growth strategy with the Maxwell Shoe and Barneys New York acquisitions and the rollout of the Jones New York Signature line.3. Paul Charron, 62, Chairman, CEO, Liz Claiborne Inc. 2004 compensation: $4.5 million Percent change from 2003: 44.1; salary: $1.5 million; bonus: $2.9 million; other compensation: $88,300 Charron witnessed the second-largest compensation-package gain of the top 10, behind Ralph Lauren. He heads a company that spans brands from Liz Claiborne to Juicy Couture, Dana Buchman to Ellen Tracy. Charron announced earlier this month the launch of City Unltd., Claiborne's development of a better sportswear brand, available in February. Included in his bonus is $500,000 that is deferred until Charron leaves the company, according to his employment agreement.
4. Robert Margolis, 57, Chairman, CEO, Cherokee Inc. 2004 compensation: $4.2 million Percent change from 2003: 11.5; salary: $734,000; bonus: $3.5 million Margolis was the co-founder of Cherokee's apparel division in 1981. He was appointed chairman and ceo in May 1995. Under his leadership, the Van Nuys, Calif.-based company's revenues have grown to about $38.9 million in fiscal 2005 from approximately $8.7 million in 1997, an increase of more than 447 percent. Cherokee's brands can be found in stores such as Target, Carrefour and Tesco.
5. * Mossimo G. Giannuli, 40, Chairman, CEO, Mossimo Inc. 2004 compensation: $3.5 million Percent change from 2003: 26.8; salary: $900,000; bonus: $2.6 million Giannulli has been chairman since the company's formation in 1988. Giannulli's annual bonus is based on the "accomplishment of specific preestablished financial performance objectives by the company," according to Mossimo's proxy. The bonus plan became effective as of Feb. 1, 2002, and will remain in effect until early 2007.
6. * Bruce J. Klatsky, 56, Chairman, CEO, Phillips Van-Heusen 2004 compensation: $3.5 million Percent change from 2003: 13.9; salary: $1.2 million; bonus: $2.3 million At age 56, Klatsky retired in June of this year. The retirement comes on the heels of a 13.9 percent jump in his compensation package and following a 33-year tenure with the company, including 11 years as ceo and 10 as chairman. Succeeding him is another 56-year-old, Mark Weber, president and chief operating officer of PVH.7. Roger N. Farah, 52, President, Chief Operating Officer, Polo Ralph Lauren 2004 compensation: $3.3 million Percent change from 2003: 14.8; salary: $900,000; bonus: $2.4 million Farah has been president, chief operating officer and a director of the New York-based apparel company since April 2000. Last year, Farah's employment agreement was amended to extend its term from the end of 2007 to April 2010. The amendment continues Farah's current base salary, annual incentive bonus opportunity and deferred compensation through the end of the newly extended employment term.
8. Robert McKnight, 51, Chairman, CEO, Quiksilver 2004 compensation: $3.2 million Percent change from 2003: 20.4; salary: $800,000; bonus: $2.3 million; other compensation: $70,000 McKnight, who co-founded the company in 1976, also served as president from 1979 through July 1991 and served as chairman and ceo since August 1991. In June, Quiksilver released second-quarter earnings, which reflected strong sales in its worldwide operations.
9. * Sidney Kimmel, 77, Chairman, Jones Apparel Group 2004 compensation: $3.1 million Percent change from 2003: 0.2; salary: $1.2 million; bonus: $1.8 million; other compensation: $148,869 Kimmel's employment agreement states his annual salary will not be less than $1.1 million and he is entitled to receive annual bonuses in accordance with the Executive Annual Incentive Plan. Kimmel retired at the end of 2002 as ceo, succeeded by Boneparth, but he still remains chairman of the company he built into an apparel force.
10. * Paul Fireman, 61, Chairman, CEO, Reebok International 2004 compensation: $3.1 million Percent change from 2003: 12.9; salary: $1.3 million; bonus: $1.7 million; other compensation: $156,712 Following the acquisition of his company earlier this month by Adidas-Salomon, Reebok chairman and ceo Paul Fireman told WWD that he plans to stay with the newly formed organization through the acquisition, then take on a more strategic role in the company — and that a successor from within will take over day-to-day operations. Fireman and his wife's Reebok stock is worth over $650 million.11. * Reed Krakoff, 41, President, Executive Creative Director, Coach Inc. 2004 compensation: $3 million Percent change from 2003: -45.4; salary: $1 million; bonus: $1.8 million; other compensation: $237,888 Krakoff's employment agreement was extended this year, along with those of ceo Lew Frankfort and Keith Monda, president and chief operating officer. The extensions now put their agreements in effect until August 2011 — they were originally set to expire in 2008. Krakoff also serves as executive creative director for the New York-based company.
12. * Mackey McDonald, 58, Chairman, President, CEO, VF Corp. 2004 compensation: $3 million Percent change from 2003: 46.6; salary: $990,000; bonus: $2 million VF Corp's board increased McDonald's salary to $1.1 million this coming fiscal year. McDonald has served as chairman, president, and ceo of VF since 1998. In addition to its well-known Lee and Wrangler denim brands, VF has a stake in higher fashion through John Varvatos, Nautica and Earl Jean.
13. Philip Knight, 67, Chairman, Nike Inc. 2004 compensation: $2.8 million Percent change from 2003: -23; salary: $1.3 million; bonus: $1.6 million Knight served as president and ceo of Nike until Dec. 28, 2004, when he resigned. He remains chairman and an officer of the company. Effective Feb. 1, Knight's salary was reduced to $1 million per year. Because he served as ceo for only part of the fiscal year, his fiscal 2005 bonus was reduced to $1.6 million (down from $2.3 million the year prior).
14. * Mark Parker, 49, President, Nike Brand, Nike Inc. 2004 compensation: $2.4 million Percent change from 2003: 5.2; salary: $1 million; bonus: $1.3 million Parker has been with Nike since 1979 with primary responsibilities in product research, design and brand management. He became president of the Nike brand in 2001. At an analysts' meeting in June, Parker pointed out the brand is gaining ground in new categories such as skateboarding. The brand has also been benefiting from new footwear performance technologies.15. * Lew Frankfort, 58, Chairman, CEO, Coach Inc. 2004 compensation: $2.4 million Percent change from 2003: 8; salary: $813,583; bonus: $1.2 million; other compensation: $327,039 Frankfort has been involved with the Coach business for 25 years. He has served as chairman and ceo since November 1995. Frankfort, with Krakoff, has turned Coach into one of the hottest brands around. Coach projects sales in the current fiscal year will top $2 billion for the first time as it pumps up growth abroad while continuing its success in the U.S.
16. * Mark Weber, 56, President, Chief Operating Officer, Phillips-Van Heusen 2004 compensation: $2.4 million Percent change from 2003: 12; salary: $1 million; bonus: $1.4 million In connection with Bruce Klatsky's announced retirement, PVH announced a succession plan. Under this plan, Weber, PVH's president and chief operating officer, took over as ceo on June 14, the day of the firm's annual meeting. Weber's employment agreement states that effective as of the date he becomes ceo, his base salary will increase to $1.1 million per year.
17. Jeffrey Swartz, 45, President, CEO, Timberland Co. 2004 compensation: $2.3 million Percent change from 2003: -13.9; salary: $737,500; bonus: $1.4 million; other compensation: $179,223 Jeffrey Swartz has been the company's president and ceo since June 1998 — his compensation package dropped by almost 14 percent this past year. The WWD 100 reported that "company officials say they plan low- to mid-single-digit revenue growth and double-digit gains in earnings per share in 2005." WWD reported earlier this month that Timberland has said it has a women's specific apparel line in the works, but it did not provide a launch date.
18. * Kenneth D. Cole, 51, Chairman, CEO, Kenneth Cole Productions 2004 compensation: $2.2 million Percent change from 2003: 10; salary: $1 million; bonus: $1.2 million Since the company's inception in 1982, Cole has remained ceo and chairman — he was also president until February 2002. Cole featured his Spring 2006 collection at New York Fashion Week Friday. Cole is the company's largest shareholder, with 9.1 million shares of class A stock, valued at $274 million, according to WWDScoop.19. * Bernard Mariette, 42, President, Quiksilver 2004 compensation: $2.2 million Percent change from 2003: -1.4; salary: $550,000; bonus: $1.6 million Since October 2001, Mariette has served as president of Quiksilver. Prior to this, Mariette was deputy general manager of Timberland, France and Spain, and held various senior management positions with L'Oréal. Following the company's second-quarter earnings release in June, Mariette said in a statement, "Both the Quiksilver and Rossignol teams are strongly embracing our vision to become the number-one company in the global outdoor market."
20. Oscar Feldenkreis, 45, Vice Chairman, President, Chief Operating Officer, Perry Ellis International 2004 compensation: $2.1 million Percent change from 2003: 65.1; salary: $618,000; bonus: $1.5 million Oscar Feldenkreis has been with Perry Ellis since 1979 and has worked for various operations since that time — he was elected president and chief operating office in February 1993 and elected vice chairman in March 2005. The company continues to focus on its growing men's sportswear line, following Patrick Robinson's departure. The creative director left last year and the development of women's sportswear has been shelved for now.
Sources: Company Reports and filings; ages as of filing date. *indicates a tie.
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