William McComb, chief executive officer of Liz Claiborne Inc., took a 13.4 percent pay cut last year, according to an annual filing with the Securities and Exchange Commission.
This story first appeared in the April 7, 2009 issue of WWD. Subscribe Today.
McComb’s total compensation of $5.5 million included a salary of $1.3 million, the same as in 2007, and stock and option awards valued at $3.8 million. In 2007, those awards paid $4.5 million.
The former Johnson & Johnson executive, who has led Claiborne since 2006, also received $127,200 for a company-provided apartment in New York, $13,360 for private use of car services and a clothing allowance of $6,429.
He hasn’t received non-equity incentive plan compensation in either of his two full years with the company, according to the filing.
Since taking the helm, McComb has worked to reinvent the business against a backdrop of a rapidly changing department store and retail landscape. In his first year on the job, after splitting the company into two groups, one for partnered brands and the other for direct brands, he orchestrated the sale or closure of the majority of 16 underperforming components of its portfolio. McComb hired Isaac Mizrahi to remake the firm’s flagship brand, worked to support names such as Juicy Couture and Kate Spade and, in February, turned over Claiborne’s sourcing operations to Li & Fung.
In the fiscal year ended Jan. 3, Claiborne posted a $951.8 million loss, after writing down $683.1 million in goodwill related to legacy acquisitions. Net sales for continuing operations dropped 10.3 percent to $3.99 billion.
Among the firm’s other top executives, Andrew Warren, executive vice president and chief financial officer, saw his pay increase 1.1 percent to $1.3 million in 2008. David McTague, executive vice president of partnered brands, logged a 14.8 percent rise in compensation to $1.2 million. Both executives joined the company in mid-2007.