That’s clear from the Gucci Group NV’s 2002 annual report in which it disclosed that star designer Tom Ford received total compensation last year of $6.5 million, of which $4.7 million was in salary and another $1.8 million in bonus. The bonus was guaranteed as part of his employment contract, which expires in June of next year. Ford’s year-ago compensation was not given since he was not part of the management committee in 2001.
Ford’s pay was more than double chief executive officer Domenico De Sole’s, who took home $2.7 million in salary and no bonus. That’s down 56.4 percent from the $6.2 million De Sole earned last year, when he garnered $2.9 million in salary and a bonus of $3.3 million. De Sole’s year-ago bonus was discretionary based upon the company’s fiscal year 2000 financial results. His 2002 salary included $615,400 in matching charitable contributions.
Dollar figures have been converted from euros at current exchange.
This is the first time Amsterdam-based Gucci has broken out executive pay in its annual report. Previously, the world’s third-largest luxury goods company had disclosed all management pay in a lump sum.
While neither Ford nor De Sole were given any stock awards last year, they exercised 1 million and 36,363 options, respectively, but Gucci did not disclose the strike or sales prices. At year-end, Ford held 4 million unexercised options with an average weighted price of $95.50, and De Sole 1.4 million options with an average weighted price of $74.49. Gucci’s stock has traded as high as $98.05 over the past 52 weeks.
Ford and De Sole have tried to quiet rumors that they might leave the company as its controlling shareholder Pinault-Printemps-Redoute SA continues to increase its stake in the company.
De Sole’s contract expires three months earlier than Ford’s next year.
Ford and De Sole, who are largely credited with rejuvenating what was perceived to be a fading brand, have said they will remain with Gucci as long as they maintain full control and independence from PPR.