Michelle Gass is about to learn what Victor Luis already knows — chief executive officers in fashion and retail work hard, but get paid well.
That pay is also out in the open, with pay packages for Gass at Kohl’s Corp. and Luis at Coach Inc. detailed in late-Friday filings with the Securities and Exchange Commission.
Gass takes the top job at Kohl’s next year when Kevin Mansell steps down, but entered into a new employment agreement on Monday. Under its terms, Gass will receive an annual salary of $1.4 million, a bonus reaching up to as high as $3.5 million and long-term incentive pay as much as $6 million in addition to other benefits.
That’s a potential payday of over $10.9 million.
Luis, who is transforming Coach into a portfolio business with its acquisition of Kate Spade & Co., saw his total compensation rise to $12.9 million from $9.9 million in 2016.
Luis’ take included salary of $1.3 million, incentive pay of $2.5 million and stock and option awards valued at $9 million (although he might never see the full value of those awards given stock price fluctuations and vesting schedules).
While they oversee very different companies, both Gass and Luis face many of the same challenges and must work to connect with customers who are increasingly digital and turning to Amazon more, going to stores not just to pick up goods, but to experience a brand.
Coach is working to expand its brand portfolio and build that way, while also adopting a more digital stance.
Kohl’s has been developing its omnichannel positioning and has been collaborating with Amazon.
Kohl’s said last week that a total of 82 of its stores in Chicago and Los Angeles would offer free Amazon returns. And earlier this month, the retailer revealed a new smarthome experience with Amazon, which will be set up in 10 doors.
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