Kate Spade & Co. on Tuesday filed a preliminary proxy showing total compensation for chief executive officer Craig Leavitt declined 5.2 percent to $9.8 million in 2016 from $10.4 million in 2015. The base salary of $1.5 million stayed the same for both years. The value of stock awards rose 34 percent to $7.1 million from $5.3 million, but the non-equity incentive plan compensation fell 51.8 percent to $1.1 million from $2.4 million. Leavitt didn’t receive any option awards in 2016 — he received $1.1 million in 2015 — and other compensation rose 31.8 percent to $95,514 from $72,467.
Deborah Lloyd, chief creative officer, also saw her total compensation fall, by 14.1 percent to $8.3 million from $9.7 million in 2015. Her base salary of $1.9 million remained the same for both years. She too saw the value of her stock awards increase by 34 percent to $4.6 million from $3.5 million, but her incentive compensation award fell 51.8 percent to $1.7 million from $3.5 million. She received $732,797 in option awards in 2015, but none in 2016, and other compensation rose 29.5 percent to $82,154 from $63,452.
The company, which will elect 11 directors at the firm’s annual shareholders’ meeting on May 16 at its New Jersey offices, said nine of its 11 director nominees are independent. Kate Spade’s non-employee directors receive compensation of $150,000 for board service, with about $100,000 payable in the form of common stock. There’s also a sliding scale for different committee chairs, as well as an additional $1,000 for attendance at a board meeting, and reimbursement for out-of-pocket travel expenses. Another perk is a $6,000 allowance for the purchase of company products, based on prices that are net of the usual company employee discount. Nancy Karch, in addition to the usual director compensation, received an additional $100,000 for serving as board chair, of which $50,000 was payable in the form of common stock.
Kate Spade is in the process of selling itself. It has gone through the second round of bidding, but there was no indication of whether any discussions would result in a transaction prior to the scheduled board meeting.