NEW YORK — Even after a $2 million pay cut, Tommy’s looking good to remain at the top of the apparel pay sweepstakes.
Tommy Hilfiger, the highest-paid apparel executive in the U.S. last year, saw his compensation as honorary chairman and principal designer of Tommy Hilfiger Corp. drop 10.3 percent during fiscal 2002.
Hilfiger’s total compensation fell to $22.4 million in the year ended March 31 versus $24.9 million in the prior year. The designer receives a base salary of $900,000 plus 1.5 percent of sales over $48.3 million. Hilfiger also received other compensation of $5,500, according to the company’s annual proxy statement, filed with the Securities and Exchange Commission Friday.
Joel Horowitz, president and chief executive, saw his total compensation decrease 15.8 percent to $10.7 million from $12.7 million. The ceo’s bonus, which is set at 5 percent of the firm’s operating earnings, back tracked 16.9 percent to $10.1 million from $12.1 million last year. His salary, however, rose 6 percent to $663,000 from $625,000 in the previous year. Horowitz received other competition of $5,500.
As reported, the designer firm saw its net income inch up 2.7 percent to $134.5 million, or $1.49 a dilute share, for the year ended March 31. This compared with year-ago earnings of $131 million, or $1.43, in fiscal 2001. Revenues dipped slightly to $1.87 billion from $1.88 billion.
The SEC filing shows during the past year, ownership in the Hong Kong-based firm has shifted, with FMR Corp. now Hilfiger’s largest shareholder with an 11.2 percent stake, or 10.1 million shares, as of Sept. 13. A year ago, Boston-based FMR firm did not qualify for the filing, which outlines the holdings of those owning more than 5 percent the company.
Another newcomer was Lord, Abbett & Co. of Jersey City, N.J., with holdings of 4.7 million shares, or 5.2 percent of Hilfiger.
Franklin Resources Inc., of San Mateo, Calif., increased its share of the firm to 7.6 million common shares or 8.4 percent. A year ago the firm carried a 6.7 percent holding. Malvern, Pa.-based Vanguard Horizon Funds decreased its stake to 5.8 million shares, or 6.4 percent. A year ago, the firm held 6.7 percent of the firm.
The largest reduction came from Primecap Management Co. of Pasadena, Calif., which dropped from an 11.2 percent share of the firm last year to 6.7 percent, or 6.1 million shares, this year.
Chairman Silas Chou’s total compensation last year rose 17.6 percent to $1.5 million from $1.3 million. Lawrence Stroll, former co-chairman, saw his compensation last year cut by 5.6 percent to to $1.2 million from $1.3 million.
The company also said that Joseph Adamko, a director since 1993, won’t stand for reelection to the board at the company’s annual meeting, to be held Oct. 28 at the Sandy Lane Hotel in Barbados. Robert Sze, a partner of Price Waterhouse Hong Kong, will take Adamko’s place on the board and stand for ratification at the annual meeting. Adamko served on Hilfiger’s audit committee and was chairman of the compensation committee.