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Executives wallets’ remained healthy last year, despite management shifts within some of the most prominent companies. Headlining departures included Paul Charron, former chairman of the board and chief executive officer of Liz Claiborne Inc., and Mark Weber, former ceo of Phillips-Van Heusen Corp. When added together, the top 10 vendors made nearly $89 million in their compensation packages. An interesting note: The top 10 vendor executives this year are all men — the top-ranked woman, Trudy F. Sullivan, outgoing president of Liz Claiborne Inc. (she announced her resignation in June), comes in at number 12.
1. RALPH LAUREN, 67, CHAIRMAN OF THE BOARD AND CEO, POLO RALPH LAUREN CORP.
Total value: $25.9 million
Base salary: $1 million; Bonus: $0; Stock and options: $8.2 million; Other: $16.6 million
Hats off to Lauren, whose company’s strong growth continued last year. Lauren said in a statement in March, “We have made significant progress on all fronts, from opening new luxury stores to initiating steps to expand our accessories business in new categories such as watches and fine jewelry, to taking direct control of our Japanese business and our Internet business.” WWD reported last month, “On the ‘other compensation’ line of the pay disclosures, Polo Ralph Lauren Corp. said, ‘In fiscal 2007, Mr. Lauren received perquisites and other personal benefits, including supplemental medical expenses ($64,086), use of an automobile and driver ($46,470), personal security and merchandise discounts.'”
2. ROGER N. FARAH, 54, PRESIDENT AND CHIEF OPERATING OFFICER, POLO RALPH LAUREN CORP.
Total value: $12.5 million
Base salary: $900,000; Bonus: $0; Stock and options: $8.6 million; Other: $3 million
Farah is another executive riding the wave of Polo’s growth, which saw profits rise 30.2 percent to $400.9 million and total revenues increase by 14.7 percent to $4.3 billion in the year ended March 31. Farah joined Polo in 2000, at which time Lauren told DNR, “I’ve known Roger for 25 years and I’ve actively recruited him. He’s one of the best talents in the retail world.” During his tenure, Farah has helped direct Polo’s global retail expansion, taken control of several of the group’s licenses and generally helped drive Polo toward its goal of becoming a true American luxury house.
This story first appeared in the August 2, 2007 issue of WWD. Subscribe Today.
3. PAUL R. CHARRON, 64, FORMER CHAIRMAN OF THE BOARD AND CEO, LIZ CLAIBORNE INC.
Total value: $9.8 million
Base salary: $1.5 million; Bonus: $0; Stock and options: $7.9 million; Other: $428,739
It’s been a wild ride lately at Liz Claiborne, which on Tuesday reported a 65 percent decline in profits for the second quarter in a row. In November, Charron retired as chairman and ceo to become chairman emeritus and remains on as a consultant for the rest of this year. He was replaced by William L. McComb, who has spent the last few months devising a strategy to halt the slide in Claiborne’s profits and sales — which includes selling off many of the acquisitions made during Charron’s tenure.
4. ROBERT MARGOLIS, 59, CHAIRMAN AND CEO, CHEROKEE INC.
Total value: $8.8 million
Base salary: $737,000; Bonus: $8 million; Stock and options: $0; Other: $21,000
The chairman and ceo has had an interesting ride with Van Nuys, Calif.-based Cherokee. After cofounding the apparel division of Cherokee in 1981, Margolis became co-chairman of the board, president and ceo in 1990 and chairman of the board in 1993. He then resigned all of his positions with Cherokee in the fall of 1993, but rejoined the company once again as chairman and ceo in 1995. The Cherokee brand’s revenues soared to $76.6 million last year — a 79 percent change from the year prior. Full-year earnings reached $34.8 million, up from $18.3 million in 2005.
5. EMANUEL CHIRICO, 50, CEO, PHILLIPS-VAN HEUSEN CORP.
Total value: $6.7 million
Base salary: $992,436; Bonus: $0; Stock and options: $1.7 million; Other: $4 million
At Phillips-Van Heusen’s annual shareholders meeting in June, Chirico outlined a retail strategy to open full-price Calvin Klein white label stores in the U.S. over the next 24 months. Calvin Klein is the top-tier brand at PVH and Chirico called it a “licensing machine.” As for the brand’s future, he told WWD: “Calvin Klein is not just about image and brand, it’s also about growth. We believe over the next five years, we can grow the Calvin Klein franchise by an incremental $2 billion to $3 billion worldwide. That will take us to a size of about $7 [billion] or $7.5 billion as a global brand.” Chirico replaced Mark Weber as ceo on Feb. 27, 2006, previously serving as PVH’s president and chief operating officer at the company.
6. KENNETH P. PUCKER, 44, EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER, TIMBERLAND CO.
Total value: $6 million
Base salary: $536,250; Bonus: $0; Stock and options: $5.2 million; Other: $246,168
For Timberland first-quarter performance, total revenues were $336.3 million, down 3.9 percent from the year-ago quarter, as the company experienced declines in sales of boots and kids’ footwear. Having joined Stratham, N.H.-based Timberland in 1992, Pucker assumed the executive vice president and ceo position in 2001. However, he left the company in March. Jeffrey Swartz, president and ceo of the company, stated in a release, “I have been privileged to build our brand and our business with Ken. He has helped me position Timberland for long-term success in many ways.”
7. JEFFREY B. SWARTZ, 47, PRESIDENT AND CEO, TIMBERLAND CO.
Total value: $5.6 million
Base salary: $818,750; Bonus: $0; Stock and options: $4.2 million; Other: $603,864
Swartz is the third generation of the family to lead Timberland — his grandfather, Nathan, founded the brand in 1952, when he purchased part of the Abington Shoe Co. The name was officially changed in 1978. Swartz has been president and ceo of Timberland since June 1998, and he’s been with the company since 1986. Fortune named Timberland Co. as one its “100 Best Companies to Work For” in 2006. At the end of last year, the company operated 20 specialty stores and 61 factory outlet stores in the U.S., along with 133 specialty shops and 32 factory outlet stores in Europe and Asia.
8. MARK WEBER, 58, FORMER CEO, PHILLIPS-VAN HEUSEN CORP.
Total value: $5 million
Base salary: $91,667; Bonus: $0; Stock and options: $0; Other: $5 million
Weber succeeded Bruce Klatsky as ceo in 2005 but was pushed out by the board in February 2006 after only eight months on the job. He since has become chairman and ceo of Donna Karan International, the subsidiary of LVMH Moët Hennessy Louis Vuitton. In connection with the termination of his employment, Weber received severance payments totaling $2.5 million.
9. JOSEPH R. GROMEK, 60, PRESIDENT AND CEO, WARNACO GROUP INC.
Total value: $4.3 million
Base salary: $991,667; Bonus: $954,400; Stock and options: $2 million; Other: $296,236
Gromek, who has been president and ceo since 2003, told analysts on a conference call in May, “We are truly a global company with nearly 50 percent of our revenues generated outside of the U.S. Our acquisition last year of Calvin Klein Jeans Europe and Asia reflected that vision and is driving our performance today.” The company is hoping to enhance its swim division’s growth — it had a 2.3 percent net revenue gain from fiscal year 2005 to 2006, but has lagged behind intimates (at 11.3 percent) and sportswear (at 54 percent). The apparel conglomerate’s portfolio boasts brands such as Anne Cole and Calvin Klein swimwear, Olga intimate apparel and Chaps sportswear.
10. KENNETH D. COLE, 53, PRINICPAL EXECUTIVE OFFICER, KENNETH COLE PRODUCTIONS INC.
Total value: $4.1 million
Base salary: $1 million; Bonus: $0; Stock and options: $1.5 million; Other: $1.6 million
Though the company has lost two key executives this year — chief operating officer Joel Newman and Kenneth Cole New York brand president Joshua Schulman — Cole, the company’s founder, remains in his seat. Cole has served as the company’s chairman and ceo since its inception in 1982 and was also president until February 2002. Kenneth Cole New York will not return to the runway in September, as previously announced. The company is instead preparing for its silver anniversary during the next five months.
11. PETER BONEPARTH, 47, PRESIDENT AND CEO, JONES APPAREL GROUP.
Total value: $4 million
Base salary: $2.5 million; Bonus: $0; Stock and options: $1.5 million; Other: $64,627
Boneparth caused quite a stir when he abruptly resigned from his position at Jones early last month after five years in the top job. WWD reported last month, “His contract was to expire in March 2009, and the timing of his resignation — in the middle of negotiations to sell Barneys New York — surprised many in the industry.” Wesley Card has replaced Boneparth at the helm of the $4.74 billion vendor. Jones revealed Wednesday that it has accepted Fast Retailing Co. Ltd. of Japan’s $900 million bid for Barneys.
12. TRUDY F. SULLIVAN, 57, PRESIDENT, LIZ CLAIBORNE INC.
Total value: $3.4 million
Base salary: $1 million; Bonus: $0; Stock and options: $2.2 million; Other: $109,926
Sullivan revealed at the end of June that she was leaving Claiborne to become president and ceo of Talbots. Only a week before, Sullivan had been tapped to oversee the group’s new “partnered brands” division, which was made up of those that have been struggling and included many the company now plans to sell or close. Upon news of her departure, Claiborne ceo McComb stated in a release, “For the past six years, Trudy has been an integral part of the company’s management team, helping shape and implement strategy, and we thank her for her many contributions. Trudy’s business acumen, energy and savvy will be a tremendous asset to her new employer.” The company said the position of president will be eliminated.
13. RHONDA J. BROWN, 51, FORMER PRESIDENT AND CEO, FOOTWEAR, ACCESSORIES AND RETAIL GROUP, JONES APPAREL GROUP INC.
Total value: $3.3 million
Base salary: $379,167; Bonus: $284,375; Stock and options: $988,915; Other: $1.6 million
In April 2006, Brown suddenly resigned her post as president and ceo of the footwear, accessories and retail group at Jones. She was succeeded by Andrew Cohen and Heather Pech. In April of this year, Pech left the company amid claims by Boneparth, ranked number 11, that the retail division was not progressing fast enough.
14. JEFFREY LUBELL, 50, CEO AND CHAIRMAN, TRUE RELIGION APPAREL INC. .
Total value: $2.6 million
Base salary: $500,000; Bonus: $825,212; Stock and options: $1.2 million; Other: $38,537
With earnings down at the Vernon, Calif., premium denim brand, Lubell has some challenges ahead. In May, he said in a statement, “Our business is on plan and we believe we have made the right investments over the past six months to further secure our foothold as a denim-inspired icon brand.” WWD reported, “Long-running problems in the Japanese market continue to affect the company’s international business.”
15. D. SCOTT OLIVET, 44, CEO, OAKLEY INC.
Total value: $2.4 million
Base salary: $600,000; Bonus: $525,000; Stock and options: $1 million; Other: $241,382
At the end of June, Luxottica Group SpA said it would buy Oakley Inc. for about $2.1 billion. Olivet joined Oakley in October 2005 as its ceo and as an Oakley director. From August 2001 to October 2005, he served as Nike Inc.’s vice president of Nike subsidiaries and new business development.
16. HELEN MCCLUSKEY, 52, GROUP PRESIDENT, INTIMATE APPAREL, WARNACO GROUP INC.
Total value: $2.3 million
Base salary: $670,833; Bonus: $244,390; Stock and options: $954,934; Other: $425,697
WWD reported in June that Warnaco Group Inc. was expanding McCluskey’s responsibilities to include its global swim businesses. At Warnaco since 2004, McCluskey will assume management over swim brands including Speedo, Anne Cole, Ocean Pacific, Nautica, Calvin Klein and Michael Kors. She served for three years as group president of the moderate women’s sportswear division at Liz Claiborne Inc. and, before that, had an 18-year career at Sara Lee, including serving as president of Playtex Apparel.
17. EFRAIM GRINBERG, 49, PRESIDENT AND CEO, MOVADO GROUP INC.
Total value: $2.2 million
Base salary: $941,346; Bonus: $0; Stock and options: $440,002; Other: $823,588
Grinberg joined Paramus, N.J.-based Movado’s marketing department in June 1980 and moved his way up to senior vice president of marketing by 1986. In 1988, he was elected to the board. From June 1990 to October 1995, Grinberg served as the company’s president and chief operating officer and, since October 1995, served as the company’s president. In May 2001, Grinberg was elected to the position of president and ceo. For fiscal 2006, revenues totaled $532.9 million, a 13.2 increase from the year prior.
18. MORRIS GOLDFARB, 56, CHAIRMAN OF THE BOARD AND CEO, G-III APPAREL GROUP LTD.
Total value: $2.1 million
Base salary: $650,000; Bonus: $1.2 million; Stock and options: $37,350; Other: $179,461
Goldfarb has been a director of sportswear and outerwear firm G-III Apparel Group Ltd. and a member of its executive committee since 1974. In May, G-III Apparel Group acquired two affiliated companies: Jessica Howard Ltd., a moderate and better dress company, and Industrial Cotton Inc., a junior sportswear and denim resource, for about $8.1 million total.
19. STEVEN NICHOLS, 64, PRESIDENT AND CEO, K-SWISS INC.
Total value: $1.98 million
Base salary: $915,083; Bonus: $0; Stock and options: $77,119; Other: $991,472
Nichols has been president and chairman of the board of K-Swiss since 1987. From 1980 to 1986, he was a director and vice president-merchandise of Stride Rite Corp. Last week, the athletic footwear company reported that earnings fell 62 percent to $7.7 million, or 22 cents a share, from $20.3 million, or 58 cents a share, during the same period last year. The company also said it expects third-quarter and annual earnings to decline, as it faces lower demand and invests in international expansion.
20. GEORGE FELDENKREIS, 71, CHAIRMAN OF THE BOARD AND CEO, PERRY ELLIS INTERNATIONAL
Total value: $1.97 million
Base salary: $900,000; Bonus: $0; Stock and options: $0; Other: $1 million
Feldenkreis founded Supreme International — a company known for manufacturing school uniforms and guayaberas — in 1967. Since then, he has been involved in all aspects of company operations, serving as president and director until February 1993, when he was elected chairman and ceo. Supreme International went public in 1993 and became Perry Ellis International with the acquisition of the well-known fashion line in 1999.
21. ROBERT C. SKINNER JR., 53, CHAIRMAN, PRESIDENT AND CHIEF EXECUTIVE OFFICER, KELLWOOD CO.
Total value: $1.9 million Base salary: $983,333; Bonus: $250,000; Stock and options: $596,733; Other: $39,876
22. OSCAR FELDENKREIS, 47, VICE CHAIRMAN, PRESIDENT AND CHIEF OPERATING OFFICER, PERRY ELLIS INTERNATIONAL
Total value: $1.85 million
Base salary: $900,000; Bonus: $0; Stock and options: $0; Other: $954,812
23. TIMOTHY P. BOYLE, 57, PRESIDENT AND CEO, COLUMBIA SPORTSWEAR CO.
Total value: $1.74 million
Base salary: $739,980; Bonus: $162,800; Stock and options: $0; Other: $842,941
24. THOMAS J. WARD, 60, CEO AND VICE CHAIRMAN, MAIDENFORM BRANDS INC.
Total value: $1.66 million
Base salary: $551,714; Bonus: NA; Stock and options: $344,578; Other: $762,725
25. LYNN POWERS, 57, PRESIDENT, DIRECTOR AND CEO OF NORTH AMERICAN OPERATIONS, GAIAM INC.
Total value: $1.52 million
Base salary: $296,712; Bonus: $100,000; Stock and options: $128,313; Other: $991,346
26. RICHARD COTE, 52, EXECUTIVE VICE PRESIDENT, CHIEF OPERATING OFFICER, MOVADO GROUP INC.
Total value: $1.45 million
Base salary: $566,346; Bonus: $0; Stock and options: $410,643; Other: $480,501
27. DORVIN D. LIVELY, 48, EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER, MAIDENFORM BRANDS INC.
Total value: $1.4 million
Base: $379,651 Bonus: NA; Stock and options: $633,686; Other: $372,245
28. SETH A. HOROWITZ, 30, CEO, EVERLAST WORLDWIDE INC.
Total value: $1.3 million
Base salary: $325,000; Bonus: NA; Stock and options: $494,865; Other: $516,574
29. W. LEE CAPPS 3RD, 59, CHIEF OPERATING OFFICER, CFO AND TREASURER, KELLWOOD CO.
Total value: $1.14 million
Base salary: $625,000; Bonus: $117,188; Stock and options: $323,158; Other: $79,920
30. GERTRUDE BOYLE, 83, CHAIRMAN OF THE BOARD, COLUMBIA SPORTSWEAR CO.
Total value: $1.11 million
Base salary: $735,000; Bonus: $58,800; Stock and options: $0; Other: $318,834
SOURCE: SECURITIES AND EXCHANGE COMMISSION FILINGS AS OF JULY; NIKE, COACH AND QUIKSILVER HAVE NOT FILED PROXIES FOR THIS YEAR AS OF JULY 30; FOR THE RANKINGS, ONLY THE TWO HIGHEST-AID EXECUTIVES WERE TAKEN FROM EACH PUBLICLY HELD COMPANY TRACKED BY WWD.
*PACKAGE VALUES INCLUDE BASE SALARY, BONUS AND STOCK OPTIONS AND OTHER AWARDS