Marciano serves as the brand’s chief creative officer and his 2017 base salary is now set at $950,000, a 40 percent increase from last year’s salary of $570,000, according to a disclosure filed with the Securities and Exchange Commission.
Marciano, who acted as chief executive officer of Guess for 15 years, is also entitled to a performance-based bonus of up to 263 percent of his salary.
He was replaced in July 2015 in the ceo role by Victor Herrero, a former executive of Inditex, which owns Zara.
Herrero’s base salary remains at $1.2 million, but an updated employment agreement demands that his annual grant of company equity will not equal less than 233 percent of his salary, according to a disclosure.
Guess’ eight-member board, which is chaired by brand cofounder Maurice Marciano and includes Paul Marciano and Herrero, approved the pay changes April 28.
But business at Guess isn’t exactly booming, especially in the Americas.
During the fourth quarter of 2016, the retailer posted a $32 million net loss from its Americas business, stemming in large part from close to $21 million in charges related to store closures. The year prior, the region pulled in revenue of $289 million.
Herrero said then that sales in the Americas were “significantly” below expectations, leading the company to decide to close at least 60 stores this year, in addition to the roughly 62 store closed in 2015 and 2016.
Even including sales from e-commerce, comparable-store sales in the U.S. and Canada during the fourth quarter dropped by 7.4 percent at constant currency.
Guess managed to eke out revenue growth of 3 percent because of an 11 percent revenue gain in Europe and a 27 percent gain in Asia, where Guess has been busy expanding by opening new stores, mainly in China.
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