American Eagle Outfitters Corp.’s top executive Jay Schottenstein took the number-two spot last year in terms of compensation.
Schottenstein was beaten out by chief global commercial and administrative officer Peter Horvath, who took home more than $8.4 million in pay last year, comprised of a roughly $605,000 base salary, about $6.9 million in stock awards and more than $950,000 in incentive and other compensation, according to a disclosure filed with the Securities and Exchange Commission.
While chief executive officer Schottenstein’s pay is nothing to sneeze at coming in at $7.5 million, it’s not only about $1 million less than Hovarth’s compensation, but $560,000 less than his own pay in 2015.
During 2016, Schottenstein’s base salary stayed at $1.5 million and he took home increased stock awards of $3.5 million, but his additional incentive compensation dropped to $2.4 million from $4.4 million in 2015.
American Eagle had a mixed year over 2016. Sales increased by about 3 percent overall, but during the fourth quarter, net income fell 33.1 percent to $54.6 million from $81.7 million a year earlier.
The company’s outlook for the first quarter of 2017 expects comp store sales to be between a low-single-digit decline to flat, indicating American Eagle may be headed for a longer-term slump.
Nevertheless, most of the company’s executives, save for Schottenstein and Horvath, received pay increases.
Global brand president for American Eagle Charles Kessler received a 6 percent salary bump to $842,646, bringing his total 2016 pay to $5.8 million, while global brand president for Aerie Jennifer Foyle received a 10 percent pay bump to $763,495, bringing her total pay up to $5.6 million.
American Eagle said the raises for Kessler and Foyle were in an effort to “recognize their contributions to a very strong performance in fiscal 2015, to appropriately position their salary to the competitive market and recognize their elevated role in brand leadership” given the retirement of creative director Roger Markfield.
The company’s senior vice president and chief accounting officer Scott Hurd also received a 12 percent salary increase to about $500,000, as well as a $200,000 bonus, leaving his 2016 pay at roughly $1.5 million.
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