The cash compensation of Dillard’s Inc.’s two top executives dropped 4.8 percent last year while their total pay packages were cut by more than half because of accounting adjustments.
The salary of William Dillard 2nd, chief executive officer, rose to $950,000 from $900,000 while his cash bonus, or nonequity incentive plan compensation, contracted 7.6 percent to more than $3 million from more than $3.2 million a year ago, putting the cash total at nearly $4 million, from more than $4.1 million in 2011. His stock awards grew 14 percent to $6.9 million from $6 million, and other compensation was up 17.1 percent to $253,000.
However, reported compensation fell 58.5 percent to $4.9 million from $11.8 million a year ago, principally because no “change in pension value and nonqualified deferred compensation” was reported. Last year that column of Dillard’s compensation table included a $6.8 million change.
Alex Dillard, president of the Little Rock, Ark.-based company and William’s brother, had a 5.7 percent increase in salary to $920,000 and a 7.6 percent decline in cash bonus, identical to his brother’s at $3 million. The brothers’ stock awards were virtually identical. The pension value change column was empty, versus a $7.8 million adjustment last year, putting total compensation at $4.8 million, down 61.9 percent.
The brothers were each entitled to 30 percent of a cash bonus pool of $10 million based on a formula incorporating 2012 pretax income and the increase in pretax income over the prior year. Pretax income last year was $481 million, up 19.8 percent over 2011.
The figures were reported in Dillard’s definitive proxy, filed with the Securities and Exchange Commission on Friday. Stock awards aren’t necessarily realized by the executives because of fluctuating stock values and vesting schedules but are reported to the SEC at grant date fair value.