FRUIT OF THE LOOM PROXY FILING REVEALS EXECS’ COMPENSATION
NEW YORK — William Farley, chairman and chief executive officer at Fruit of the Loom Inc., saw his total pay package skyrocket to $11.1 million from $1.1 million a year ago, according to FTL’s just-released proxy statement.
The largest part of his pay hike consisted of $5.8 million in restricted stock awards. He also received $2.3 million in long-term incentive payouts under FTL’s 1994 executive incentive compensation plan for the four years ended Dec. 31, 1997.
Although Farley’s annual base salary has remained at $950,000, he received a $1.9 million annual bonus in 1996 against no bonus in 1995. Finally, Farley received other annual compensation of $182,843 to cover tax reimbursements, insurance premiums and $51,808 in club expenses.
In 1995, Farley earned only a base salary of $950,000 and other compensation of $166,093.
All FTL executives received annual incentive bonuses at their maximum levels because of FTL’s turnaround year last year. FTL earned $151.2 million, or $1.98 a share, rebounding from a loss of $232.5 million in 1995. The prior year period included restructuring charges of $287 million.
Farley also got options for 605,800 FTL shares exercisable at 25 7/8 each. Shares of FTL closed at 37 3/8, down 3 1/4, Friday on the New York Exchange.
Among other executives, Richard C. Lappin, president and chief operating officer, earned $6.1 million versus $681,503 in 1995.
Lappin received a base salary $775,000, a bonus of $976,500, restricted stock awards worth $3.3 million, long-term payouts of $834,300 and other compensation of $271,926. Lappin realized an additional $1.3 million from exercising options on 50,000 shares.
Lappin was appointed president and chief operating officer in February 1996. Previously, he had been vice chairman since October 1991.
Total compensation for Larry K. Switzer, senior vice president and chief financial officer, jumped to $3.7 million from $536,983.
Switzer received a base salary of $500,000, a bonus of $585,000, restricted stock awards worth $2 million, long-term payouts of $605,325 and other compensation totaling $14,743.
Switzer also collected $382,500 from the exercise of options on 20,000 shares.
Bernhard Hansen, president of Europe, earned $1.1 million in 1996, and John Wigodsky, executive vice president of sales and marketing, $1.6 million. Comparable 1995 compensation for Hansen and Wigodsky was not included in the proxy statement. Wigodsky’s employment with FTL was terminated in March 1997.