This story first appeared in the April 15, 2011 issue of WWD. Subscribe Today.
Warnaco Group Inc. chief executive officer Joseph Gromek’s 2010 pay package grew exactly one-third last year, to $8.3 million, as his bonus and stock awards expanded by more than $2 million.
Helen McCluskey, who was promoted to chief operating officer of Warnaco in September, saw her total compensation more than double, to $6.5 million from $2.8 million in 2009, with the majority of the increase coming from her receipt of more than 62,000 restricted shares of stock in connection with her new role. Shares of Warnaco Thursday closed at $60.57, up 47 cents, or 0.8 percent. Upon vesting, McCluskey’s restricted shares would be worth about $3.8 million at that price.
Her salary was raised to $900,000 from $840,000 and her incentive compensation award target was elevated to 90 percent of her base salary, from 85 percent.
The figures were contained in a definitive proxy filed by Warnaco this week with the Securities and Exchange Commission.
Gromek’s $8.3 million compensation in 2010 compared with $6.2 million for 2009. His salary rose 3.8 percent to $1.14 million from $1.1 million and his bonus — based on Warnaco’s 2010 earnings per share and classified as nonequity incentive plan compensation — was up 56.4 percent to $3.2 million from $2.1 million. His stock awards beefed up 67.6 percent to $2.4 million, more than making up for a 12.7 percent reduction in his option awards, to $982,000. Companies are required to report stock and option awards earned by their named executive officers in a given year but, because of vesting schedules and changing stock prices, these awards aren’t necessarily realized.
The sum of Gromek’s salary and bonus was $4.4 million, up 38.1 percent from $3.2 million in 2009.
In 2010, Warnaco’s net income rose 44.4 percent to $138.6 million, or $2.99 a diluted share, from $96 million, or $2.05, in 2009. Revenues were up 13.7 percent to $2.3 billion from $2.02 billion.