Ann Inc. chief executive officer Kay Krill saw her compensation fall nearly 8 percent last year, to $8.1 million, as the company’s earnings and operating profit fell short of target levels.
Krill, who also holds the title of president, pulled in $1.2 million in salary, the same as in 2013, but saw her cash bonus, or non-equity incentive plan compensation, decline 29.9 percent to $2.3 million from $3.3 million in the prior year. That put the cash component of her pay at $3.5 million, down 22 percent from the $4.5 million collected in 2013.
Her stock awards rose 17 percent to $3.2 million while option awards were down 8.2 percent to $1.1 million. The sum of those noncash awards was $4.2 million, 9.4 percent above the prior-year level of $3.9 million.
The figures were included in Ann’s 2014 definitive proxy, submitted to the Securities and Exchange Commission. Stock and option awards are recorded at fair market value for the date on which they are granted; amounts ultimately received by the executive may vary because of fluctuating stock prices, vesting schedules and other factors.
Excluding extraordinary items, Ann’s operating profit last year fell 13.3 percent to $147.4 million, while net income was down 13.1 percent to $89 million and earnings per share were down 11.4 percent to $1.94. Sales rose 1.6 percent to $2.53 million.
The operating profit and EPS results, a major component of bonus calculations, fell short of target amounts while exceeding threshold levels set by Ann’s compensation committee, according to the proxy.
Brian Lynch, terminated as president of the Ann Taylor brand on March 15, 2014, received $2 million in severance, equivalent to 18 months of his base salary, in addition to $855,000 in other compensation. Lynch last week joined Ascena Retail Group Inc. as president of its 1,000-unit Justice tween brand.