The compensation committee of Kohl’s Corp.’s board is getting tough with top management, cutting compensation while the retailer’s performance sags.
“Because the company failed to achieve acceptable financial results in 2012, our principal officers did not achieve a ‘satisfactory’ rating for the year and therefore did not receive any stock options, restricted shares or any other form of equity awards in 2013 based on 2012 performance,” according to Kohl’s proxy statement filed with the Securities and Exchange Commission.
Kohl’s principal officers include Kevin Mansell, chairman, president and chief executive officer; Donald Brennan, chief merchandising officer; and John Worthington, chief administrative officer.
The compensation committee gave each a performance rating of “inconsistent” for the year.
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Mansell’s total compensation fell 17 percent to $7.8 million and included a salary of $1.3 million and incentive pay of $531,720. He also received stock and options awards from prior years valued at a total of $5.6 million, although that amount might not be realized given vesting schedules and stock price fluctuations.
Both Brennan and Worthington saw their total compensation fall by just over 71 percent to $3 million.
“From a financial results perspective, fiscal 2012 was a disappointing year for our company,” Kohl’s said in the proxy. “While sales grew for the year in total…there were a number of categories within which we did not grow at the rate we had planned. Just as importantly, our growth came at a higher cost to profitability than is acceptable to us.”
Kohl’s net profits fell 15.5 percent to $986 million last year as sales inched up 2.5 percent to $19.28 billion.