NEW YORK — Tiffany & Co. Inc.’s chairman and chief executive officer Michael Kowalski saw his total compensation slip 31.7 percent last year.
This story first appeared in the April 8, 2013 issue of WWD. Subscribe Today.
The ceo’s total compensation declined to $6.1 million in 2012 from nearly $9 million a year earlier, according to the definitive proxy statement Tiffany filed with the Securities and Exchange Commission on Friday.
The brunt of Kowalski’s compensation cut came from his nonequity incentive plan compensation, which totaled $140,000, down from $1.2 million in 2011. The ceo’s salary remained the same at $997,315. His stock and options also remained stable, slipping just 0.3 percent to $3.1 million.
The reduction in the ceo’s total compensation also resulted from a decline in “changes in pension value and nonqualified deferred compensation earnings,” which in Kowalski’s case slid 50 percent to $1.8 million, from $3.6 million.
Additionally, the executive’s other compensation, which includes life and disability insurance premiums, dipped 18 percent to $141,158.
Because of vesting schedules and fluctuating stock values, stock and option awards aren’t necessarily realized by the named executives but, in accordance with SEC requirements, are reported to the SEC at “grant date fair value.”
For the year ended Jan. 31, the New York-based jeweler said net income fell 5.2 percent to $416.2 million, or $3.25 a diluted share, compared with year-ago income of $439.2 million, or $3.40 a share. Annual sales in 2012 rose 4.2 percent to $3.79 billion, from $3.64 billion in the prior-year period.