Paul Marciano and Victor Herrero, the top two executives at Guess Inc., saw their pay slip last year as they settled into new roles.
Marciano handed over the reins as chief executive officer to Herrero in July 2015 but remains active at the brand as executive chairman and chief creative officer.
Marciano’s compensation last year totaled $4.3 million, down from $11.2 million in 2015, and consisted mostly of stock options valued at $3.5 million, although the full value of those options might not be realized given fluctuations in share price. He also received a salary of $570,000 and other compensation of $247,445.
The big drop in his overall compensation was attributable to the $3 million in incentive pay and a total of $6.5 million in stock options he received in 2015.
Herrero’s total pay fell to $4.1 million from $14.1 million in 2015, when he received $10 million in stock and option awards as well as a $2 million bonus and $1 million in incentive pay as he moved into the corner office.
While the outright pay at the top is good the two executives also received a number of perks and other services that added to their total package.
Marciano received $157,987 worth of home security and $36,536 in automobile expenses, while Herrero received $49,257 covering relocation expenses and $15,772 in automobile expenses.
Marciano reflected on 35 years in business earlier this year, telling WWD: “My brothers and I used to have stores in France [the family’s clothing company MGA operated stores along the French Riviera], but when we came to Los Angeles on vacation in 1977, we fell in love. We thought we’d try to open stores here, too, and we would’ve been happy with a $7 million to $9 million business.”
What they built was a $2.2 billion fashion empire.
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