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.

  1. 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.

  2. 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.

  3. 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.

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