Michael Duke’s earnings dropped by almost one-third last year as equity awards received on his February 2009 promotion to president and chief executive officer of Wal-Mart Stores Inc. were credited to the previous fiscal year, according to the retailer’s proxy.
J. Crew Group Inc.’s proxy, also disclosed on Monday, showed that Millard “Mickey” Drexler, chairman and ceo, earned a total of $5.8 million, 60.1 percent above his 2008 pay of $3.6 million. Without the $2 million discretionary cash bonus granted to him by the company’s board, and disclosed on Friday, his compensation would have been $3.8 million, 5.3 percent above its 2008 level.
The sum of Drexler’s stock and option awards rose 4.3 percent last year, to $3.6 million, while his salary remained $200,000. Drexler is deemed to beneficially own more than 7.5 million shares of the company’s stock, giving him an 11.8 percent stake, according to the proxy.
According to Wal-Mart’s definitive proxy, filed with the Securities and Exchange Commission Monday, Duke earned $19.2 million last year, 32.3 percent less than his reported 2008 compensation of $28.4 million. Based on his promotion to ceo from vice chairman, his salary increased 14.6 percent to $1.2 million from $1.1 million.
However, Duke’s stock awards declined 46.3 percent to $12.7 million from $23.7 million. Almost half of the 2008 figure — about $11.4 million — were equity awards received in connection with his promotion. Had they been recorded in the most recent fiscal year, his total pay would have increased 80.2 percent to $30.6 million from $17 million.
Duke received no bonus in 2009, as in 2008, and Wal-Mart didn’t grant option awards. Because of vesting schedules and fluctuating stock prices, stock and option awards aren’t necessarily realized by the executives on record as receiving them but are reported to the SEC in accordance with regulatory requirements.
Duke’s nonequity incentive plan compensation rose 56.6 percent to $4.8 million last year, up from $3.1 million in 2008. He earned the maximum nonequity bonus available, with the $4.8 million representing 400 percent of his base salary based on the company’s pretax profit. Stock awards were doled out based on revenue growth and return on investment over the three-year period concluded on Jan. 31, the end of Wal-Mart’s fiscal year.
As with several retail executives, his other compensation dropped, declining 16.3 percent to $318,000 from $380,000. Wal-Mart recorded a $194,000 change in pension value and nonqualified deferred compensation earnings for Duke last year, versus $210,000 in 2008.
Eduardo Castro-Wright, vice chairman and head of Wal-Mart’s U.S. stores, saw his overall compensation dip 24.9 percent to $13.9 million from $18.6 million in 2008. However, it would have risen 65 percent to $20.2 million from $12.3 million if the $6.3 million in equity awards given to him at the time of his 2009 promotion had been recorded last year instead of in 2008.
Although Wal-Mart’s 2009 sales rose far less than in previous years, advancing 1 percent to $405.05 billion, its net income picked up 7 percent to $14.34 billion from $13.4 billion in 2008. The company’s return on investment was flat at 19.3 percent and return on assets rose to 8.9 percent from 8.4 percent in 2008. In 2008 net income grew 5.3 percent to $13.4 billion as sales rose 7.3 percent to $401.09 billion.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast