J. Crew Group chairman and chief executive officer Millard "Mickey" Drexler received $2.8 million in total compensation last year, a 22 percent increase from $2.3 million in 2006.
According to a Securities and Exchange Commission filing, Drexler's compensation includes a base salary of $200,000, stock and option awards totaling more than $1 million and a bonus of $1.5 million.
The compensation of some other top executives also increased. The specialty retailer awards a substantial portion of executive compensation based on performance. J. Crew has been outshining its competitors, experiencing top-line and margin growth as many other retailers are being pulled down by the depleted economy.
Tracy Gardner, president of retail and direct, was paid $2.6 million compared with $1.6 million in 2006. Her compensation package includes a base salary of $684,600 and stock and option awards of $983,954. She also received an $875,000 bonus.
Libby Wadle, executive vice president of the factory division, received a pay package of $1.1 million, an increase from $680,501 last year. Total compensation included a base salary of $390,800, stock and option awards of $351,736 and a $380,600 bonus.
Jeffrey Pfeifle, former president, received $1.3 million in 2007 compared with $1.9 million in the previous year. Pfeifle's compensation included a base salary of $842,300 and a $603,200 bonus.
Pfeifle left the company on Feb. 1 and, as a result, forfeited 159,288 stock options and 90,733 shares of restricted stock. He had been the number-two executive at the retailer, and was a close associate of Drexler. The company previously said his responsibilities will be assumed by members of the executive team and that there is no near-term plan to fill his job.
In the fourth quarter ended Feb. 2, earnings fell to $25 million, or 39 cents a share, from $44 million, or 71 cents a share, in the year-ago period. However, the year before had an extra week and a nonrecurring tax benefit of $10.9 million, and in the 2007 quarter there was a severance charge of 2 cents a share. Revenues increased 9 percent to $399.9 million, with store and outlet sales up 8 percent to $260.6 million and comparable-store sales flat. On a calendar-adjusted basis, same-store sales rose 4 percent.
For the fiscal year, revenues increased 16 percent to $1.33 billion, with comparable-store sales up 6 percent. Gross margin rose to 44.1 percent of revenues from 43.4 percent. Operating income jumped 37 percent to $172.5 million, compared with $125.6 million the previous year. Net income was $97.1 million, or $1.52 a share, versus $71.6 million, or $1.49 a share.
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