NEW YORK — When it came to pay hikes for top textile executives, 1993 did not produce a bumper crop.
Compensation for the honchos at major publicly owned mills rose a modest 7.5 percent last year, reflecting some weakness in operating results as well as difficulty in matching the big pay hikes of 1992, when payouts jumped 26.9 percent after a strong turnaround for the industry.
Average salary and bonus payments for a group of 17 textile chief executive officers was $740,382 in 1993, up from $688,439 in 1992. Nine executives received raises, while eight took cuts.
While a variety of special charges — related to downsizings and restructurings — impaired comparability of total earnings for the group against salary gains, most salary moves were tied to the operating performance of the company.
Strong results meant bonuses for executives at Graniteville Co., Concord Fabrics, Unifi, Forstmann & Co. and Dixie Yarns. Weak results meant no bonuses for top executives at Delta Woodside, Texfi Industries and Lida Inc. and reduced bonuses at Guilford Mills, Dyersburg Corp. and Galey & Lord.
Besides some weak results, the modest increase in 1993 partly reflects huge raises in 1992, when many executives came close to or reached the maximum available under their incentive bonus plans.
Frank S. Greenberg, chairman and chief executive officer at Burlington Industries, was the highest paid textile executive, earning $1.76 million for his services. That was 3.4 percent less than 1992, representing a cut in incentive bonus to $1.1 million from $1.2 million.
The shortfall reflected the decision of Burlington’s board to rein in bonuses to a maximum of 3 percent of EBITDA (earnings before interest, taxes, depreciation and amortization). Since Burlington reached its highest EBITDA in 25 years, Greenberg’s bonus was the maximum under the new compensation plan. Harold D. Kingsmore, president and ceo of Graniteville Co., was the second-highest-compensated executive at $1.6 million, representing a 60 percent pay hike. On top of his salary of $300,000, Kingsmore netted a bonus of $1.3 million tied to Graniteville’s 70 percent surge in operating profits.
Under a new employment contract entered into in May 1993, Kingsmore gets a base annual salary of $400,000, with a guaranteed bonus of at least $850,000 this year and next year.
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The biggest percentage pay increase went to executives at Concord Fabrics, with compensation shooting up nearly fourfold on record earnings.
Chairman Alvin Weinstein received a total of $700,400, with his bonus vaulting to $520,400 from $10,234 in 1992. Earl Kramer, Concord’s president, got $790,300, with his bonus jumping to $538,200 from $17,934. Most other top Concord executives received similar increases.
Unifi’s top executives all pocketed big bonuses, thanks to a 44 percent hike in net profits.
William Kretzer, president and ceo, received a bonus of $400,000 versus $250,000 in 1992. Kretzer also exercised options on 6.2 million shares to realize $3.1 million.
G. Allen Mebane, Unifi’s chairman, was the highest-paid Unifi executive, earning $1.2 million, with a salary of $800,000 and a $400,000 bonus. Mebane also received options to buy 225,000 shares at $22.83, while Kretzer got options to buy 30,000 shares at $24.67. Unifi’s stock is trading around $25.
William J. Armfield 4th, Unifi’s vice chairman, was paid $750,000 last year.
Samson Bitensky, president, ceo and a founder of Fab Industries, was the third-highest-paid executive in the group, at $1.3 million, consisting of a salary of $350,000 and bonus of $939,200. That was about the same pay as the year before, reflecting flat earnings. Bitensky also holds a 24 percent stake in Fab, or 1.5 million shares, worth about $52 million at current prices.
At WestPoint Stevens, Holcombe T. Green Jr., a venture capitalist who acquired a substantial stake in the company during its recapitalization, took over as chairman and ceo in October 1992, receiving a salary of $545,769 plus a bonus of $339,359 last year. Green holds a 33.5 percent stake, or 11.56 million shares, worth about $188 million at current market prices.
Joseph L. Jennings, who joined WestPoint as president and chief operating officer in February 1993 after nearly 20 years at Mount Vernon Mills, received a salary of $458,333, an incentive bonus of $400,000, and a signing bonus of $300,000 last year. On top of this, Jennings received options to acquire 250,000 shares at $11.50 each. WestPoint is trading at around $16.
Daniel K. Frierson, at Dixie Yarns, got a bonus of $100,000 last year in recognition of the acquisition of two carpet manufacturers and because he had not had an increase in salary since 1988.
Meanwhile, disappointing results at Delta Woodside and Texfi precluded bonuses for executives.
At Delta Woodside, E. Erwin Maddrey 2nd, president and ceo, received $412,699 in pay versus $570,920 in 1992, and Bettis C. Rainsford, executive vice president, chief financial officer and treasurer, received $366,077 against $517,565. L. Terrell Sovey Jr., Texfi’s ceo, saw his compensation tumble 42 percent to $315,000 as the company posted a loss. Both Delta Woodside’s and Texfi’s stock took heavy hits as well, reducing the value of these executives’ holdings. Each Delta executive holds around 3.2 million shares, a 13 percent stake, worth about $38 million at current prices. Sovey’s 11.4 percent stake in Texfi, 915,358 shares, is worth about $2.5 million.
At Guilford Mills, the bonus of chairman and president Charles A. Hayes fell to $324,450 from $478,800, as Guilford’s overall earnings fell short of the high end of performance targets established at the start of the year.
Hayes’s regular salary of $675,000 includes an extra $150,000 for assuming the added responsibilities of president and chief operating officer in 1992. Hayes also holds 1.3 million shares, or a 9.7 percent stake, worth $30 million.
Galey & Lord’s Arthur C. Wiener’s bonus was slashed to $94,500 from $238,200, and Dyersburg’s T. Eugene McBride’s bonus was cut to $97,478 from $197,979. Like Guilford, Galey & Lord and Dyersburg base their compensation on the achievement of targets set at the start of each year.
Richard J. Mackey, ceo at Worldtex Inc., received $449,660 under a new contract entered when the company was spun off from Wilcox & Gibbs Inc. in November 1992, about 63 percent higher than his compensation for 1992. However, in 1992, Mackey also received $2.4 million in cash and stock related to the spinoff.
Walter Y. Elisha, ceo at Springs Industries Inc., received $975,004 in compensation, about the same as 1992. His bonus of $400,000 stemmed from record sales, the success of a major restructuring undertaken by the company, and his efforts towards the passage of the North American Free Trade Agreement. He received options to buy 7,500 shares at $46 3/8. Springs stock is selling at around 31.