Highest Paid Vendors: The 20 apparel executives of U.S. publicly listed companies who received the highest packages (including salary and bonuses) in 2003
My, how the mighty have fallen. Levi, Strauss & Co. chief executive officer Philip Marineau, who topped last year’s compensation list with a whopping $24.9 million pay and bonus package, didn’t make it into the top 20 this year. Of...
My, how the mighty have fallen. Levi, Strauss & Co. chief executive officer Philip Marineau, who topped last year’s compensation list with a whopping $24.9 million pay and bonus package, didn’t make it into the top 20 this year. Of course, Marineau’s 2002 windfall was due to a $22.5 million payout from the company’s “leadership shares” program for meeting a performance target. Levi’s dismal performance in 2003 played a role in Marineau’s remuneration, which was $1.3 million last year. Company earnings also factored into the pay of other executives, including Tommy Hilfiger, who took the number one spot on the list despite the firm’s difficult year. Other executives whose names disappeared include several from Phillips-Van Heusen Corp. who may have taken a more conservative approach to bonuses in light of the high cost of integrating trophy acquisition Calvin Klein Inc. into the company.
TOMMY HILFIGER, 53, HONORARY CHAIRMAN, PRINCIPAL DESIGNER, Tommy Hilfiger Corp. Total 2003 compensation: $18.3 million; percent change from previous year: -10.8 2003 salary: $18.3 million; bonus: 0 Despite declining sales, the company’s founder continues to rake it in, owing to an employment agreement entered into before the company’s initial public offering. In addition to his $900,000 base salary, Hilfiger receives 1.5 percent of net sales once sales exceed $48.3 million.
RALPH LAUREN, 64, CHAIRMAN, CEO, Polo Ralph Lauren Corp. Total 2003 compensation: $9 million; percent change: 40.6 Salary: $1 million; bonus: $8 million Lauren, who founded the company in 1967, has a new five-year employment agreement that will keep him in the executive suite until at least 2008. The new deal gives Lauren the potential to garner increasingly larger performance-based bonuses each year, with a target bonus opportunity of $12 million in 2008. His previous agreement dated back to the 1997 IPO and had not been revised since 2000.
JOEL J. HOROWITZ, 53, EXECUTIVE CHAIRMAN, FORMER PRESIDENT, CEO, Tommy Hilfiger Corp. Total: $8.9 million; percent change: 7 Salary: $676,595; bonus: $8.2 million Horowitz ceded his titles as ceo and president in August 2003, positions he had held since 1994 and 1995, respectively. He retains the title of executive chairman, which he received in February 2003. He has been a director of the company since 1992.
REED KRAKOFF, 39, PRESIDENT, EXECUTIVE CREATIVE DIRECTOR, Coach Inc. Total compensation: $5.2 million; percent change: 294.3 Salary: $845,833; bonus: $4.3 million A $2.8 million signing bonus vaulted Krakoff onto the list. Coach entered into a five-year agreement with Krakoff in June 2003, assuring him a base salary of $1 million going forward. He is eligible to receive $750,000 for 2005, $2.5 million for 2006, and $1.5 million in 2007 and 2008. He can receive an additional bonus of up to $1.5 million in 2007 and up to $2.5 million in 2008 if the company attains set financial goals.
ROBERT MARGOLIS, 55, CHAIRMAN, CEO, Cherokee Inc. Total compensation: $3.8 million; percent change: 8.3 Salary: $720,746; bonus: $3.1 million Margolis earned a cash bonus of $3.1 million for fiscal 2004. Revenues have grown from approximately $8.7 million in the fiscal year ended May 31, 1997, to approximately $36.3 million in fiscal 2004, an increase of over 417 percent during that time period.
PHILIP H. KNIGHT, 66, CHAIRMAN, PRESIDENT, CEO, Nike Inc. Total compensation: $3.7 million; percent change: 48.5 Salary: $1.4 million; bonus: $2.3 million Knight, who cofounded the company in 1968, has built Nike into a global athletic shoes giant in 36 years. The company’s strong revenue and earnings growth in fiscal 2004 resulted in a bonus for Knight. A committee focused on performance found that the company continues to make progress toward the achievement of various strategic goals.
MOSSIMO G. GIANNULLI, 40, CHAIRMAN, CEO, Mossimo Inc. Total compensation: $3.5 million; percent change: 26.8 Salary: $900,000; bonus: $2.6 million With a base salary of $900,000, Giannulli was entitled to an annual bonus based on the accomplishment of specific preestablished financial performance objectives, including meeting certain merchandise net sales goals.
DAVID F. DYER, 55, PRESIDENT, CEO, Tommy Hilfiger Corp. Total: $3.3 million; percent change: NA Salary: $833,333; bonus: $2.5 million Dyer joined the Hilfiger team in August 2003, after serving as executive vice president and general manager of Sears, Roebuck & Co. for just over a year. Prior to that Dyer was president and ceo of Lands’ End from 1998 to 2002, the year it was acquired by Sears.
PAUL R. CHARRON, 61, CHAIRMAN, CEO, Liz Claiborne Inc. Total compensation: $3 million; percent change: -5 Salary: $1.3 million; bonus: $1.7 million A new agreement bumps Charron’s base salary to $1.5 million. His 2003 salary of $1.3 million was augmented by a bonus of $1.7 million. The bonus is tied to performance goals, which include objective earnings, earnings per share and return on invested capital.
ROGER N. FARAH, 51, PRESIDENT, CHIEF OPERATING OFFICER, Polo Ralph Lauren Corp. Total compensation: $2.9 million; percent change: -17 Salary: $900,000; bonus: $2 million Farah spent a rocky six years as the head of Venator Group, now Foot Locker, from 1994 to 2000. He’s faring better at Polo Ralph Lauren. In July the board amended his employment agreement to extend its terms from 2007 to 2010. Farah is eligible for a bonus of between 100 percent to 300 percent of his $900,000 base salary.
PAUL B. FIREMAN, 60, CHAIRMAN, CEO, Reebok International Ltd. Total compensation: $2.6 million; percent change: -13.3 Salary: $1.1 million; bonus: $1.5 million Fireman has served as chairman and ceo of Reebok since 1979. Not included in his salary is a $30,000 personal allowance. Fireman’s base salary has since been raised to $1.25 million, the first raise he’s received in over 10 years. His potential bonus has been set at 140 percent of his base salary.
ROBERT B. MCKNIGHT JR., 50, CHAIRMAN, CEO, Quiksilver Inc. Total compensation: $2.6 million; percent change: 4 Salary: $750,000; bonus: $1.9 million McKnight, who cofounded the company in 1976, receives a base salary of $750,000 with a bonus based on the company’s pretax income growth. McKnight is also eligible for a bonus of up to another 25 percent of his base salary contingent on achievement of goals established by a compensation committee.
JAY MARGOLIS, 55, PRESIDENT, COO, Reebok International Ltd. Total compensation: $2.5 million; percent change: -9.2 Salary: $1.2 million; bonus: $1.3 million A 2001 employment agreement assured Margolis of a $1 million base salary with a guaranteed increase to $1.2 million in 2003. The agreement also stipulates that he’s entitled to a minimum annual bonus target of up to 100 percent of his base salary.
JEFFREY B. SWARTZ, 44, PRESIDENT, CEO, Timberland Co. Total compensation: $2.4 million; percent change: 87.5 Salary: $687,500; bonus: $1.8 million Swartz, whose father, Sidney, is the chairman and former ceo of Timberland, has bootmaking in his blood. His grandfather Nathan was an apprentice stitcher before buying his own factory in 1952. Swartz’s target bonus is set at 125 percent of his base salary for achieving certain targets.
MARK G. PARKER, 48, PRESIDENT, Nike Inc. Total compensation: $2.3 million; percent change: 28.6 Salary: $992,308; bonus: $1.3 million Parker, who has been with the company since 1979, is responsible for product research, design and development, marketing and brand management.
CHARLES DENSON, 48, PRESIDENT, Nike Inc. Total compensation: $2.1 million; percent change: 35.3 Salary: $934,615; bonus: $1.2 million Like Parker, Denson has also been with the company since 1979.
BERNARD MARIETTE, 41, PRESIDENT, Quiksilver Inc. Total compensation: $2.1 million; percent change: 14.5 Salary: $500,000; bonus: $1.6 million Frenchman Mariette joined the Los Angeles-based company in 1994 as a vice president and director general for Quiksilver Europe. He was formerly deputy general manager of Timberland in France and Spain.
MACKEY J. MCDONALD, 57, CHAIRMAN, PRESIDENT, CEO, VF Corp. Total compensation: $2 million; percent change: -17 Salary: $990,000; bonus: $1 million McDonald joined VF’s Lee division in 1983. His salary has remained at $990,000 based on deductibility limits for federal income tax. The bonus was based on financial and operating performance, as well as personal performance goals related to growth, marketing, supply chain improvements and leadership development.
KENNETH D. COLE, CHAIRMAN, 50, CEO, Kenneth Cole Productions Total compensation: $2 million; percent change: -37.5 Salary: $1 million; bonus: $1 million Cole started the company in 1982. His bonus was based on the achievement of targeted pretax earnings, which were established by a compensation committee.
LEW FRANKFORT, 57, CHAIRMAN, CEO, Coach Inc. Total compensation: $1.9 million; percent change: 17.4 Salary: $775,000; bonus: $1.2 million Frankfort, who joined Coach in 1979, was president in July 1985 after the company was acquired by Sara Lee. Sara Lee has since divested itself of Coach. Frankfort has held his current position since November 1995. He entered into a five-year agreement in June 2003, establishing an $811,000 base salary and the ability to earn a bonus of up to 150 percent of his base.
Source: Company Reports and Filings; ages as of filing date
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