PVH Corp.’s leader Emanuel Chirico and his fellow executives got a healthy pay boost last year, despite the company’s modest revenue gains, which weren’t enough to maintain profits.
Chairman and chief executive officer Chirico saw his pay increase by 38 percent for 2016, growing to $16.1 million from $11.6 million in 2015. While Chirico’s base salary stayed at $1.35 million, he banked a $4.05 million performance bonus and an increased stock award worth about $6.87 million, which made up a majority of the increase, according to a disclosure with the Securities and Exchange Commission.
While total revenue for PVH rose by 2.3 percent to $8.2 billion last year, in large part to increased sales of Calvin Klein and Tommy Hilfiger in Europe and China, the company’s net income fell 4.1 percent to $548.7 million.
Although the 2016 results weren’t outstanding, PVH noted in the disclosure that they exceeded guidance for the year, as Chirico highlighted when the results came out.
While the pay for PVH’s other four executives is a fraction of Chirico’s, all saw their bank accounts grow with the receipt of maximum bonuses across the board.
Francis Duane, ceo of Heritage Brands and North American wholesale, came in second on the pay bracket last year, earning $5.4 million, a roughly 35 percent increase over 2015.
Duane received an increase in base salary to $1.09 million from $1.06 million and also a performance bonus of $1.84 million, mainly due to his efforts in reorganizing PVH’s Speedo and home furnishings business, according to the disclosure.
Still, the Heritage Brands division logged a 9.9 percent drop in revenues to $1.6 billion last year as the company rationalized the business, according to PVH’s fourth-quarter financials.
PVH’s executive vice president and chief operating and financial officer Michael Shaffer came in third, earning a total of $4.8 million, a 33 percent bump, again thanks in large part to $1.58 million performance bonus.
The company explained Shaffer’s bonus as due to his work creating a “unified global vision” for Calvin Klein, as well as his recruitment of new chief creative officer Raf Simons and a related restructuring of the creative side of the organization to “facilitate” Simons’ success.
Simons’ compensation was not disclosed in the filing.
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