DONNA KARAN LISTS SALARIES
NEW YORK — Including his previously reported $5 million bonus tied to completion of Donna Karan International’s initial public offering last June, Stephen L. Ruzow’s compensation as president and chief operating officer of the company came to $6.3 million last year.
According to the firm’s new proxy statement, Ruzow, in addition to the IPO bonus, received $814,423 in base salary, a $500,000 bonus, a $32,000 clothing allowance and $18,000 car allowance. In 1995, Ruzow earned $1.6 million, including $744,230 in salary, a $750,000 bonus, and $50,183 in other compensation.
Donna Karan, chairman and chief executive officer, and Stephan Weiss, vice chairman and her husband, waived their bonuses in 1996, although they were entitled to them under their employment contracts. Karan received salary and consulting fees last year of $1.75 million and Weiss got $1.25 million. In 1995, the designer earned $2.7 million and Weiss got $1.58 million.
As reported, however, through Gabrielle Studio, owned by the designer and Weiss, the two last year received $9.3 million in royalty fees and a one-time payment of $4.6 million in connection to entering into a licensing agreement for the firm’s trademarks.
Louis Praino, executive vice president of worldwide production, was paid $608,906 versus $530,960, and Joseph B. Parsons, executive vice president and chief financial officer, $569,944 against $212,510 in 1995. Parsons received a $100,000 bonus in connection with the IPO.
Ruzow, Praino and Parsons also received options to acquire shares exercisable at $24 each. Shares of Karan closed at 10 3/8, unchanged, Tuesday on the New York Stock Exchange. Ruzow received 250,000 options; Praino, 40,000; and Parsons, 30,000.
Dewey Shey, who became senior vice president and chief administrative officer in December 1996, entered into a three-year contract with Karan calling for a base salary this year of $400,000, plus a minimum cash bonus of $200,000. Shey was an investment banker at Morgan Stanley.
Karan and Weiss combined own 5.2 million shares, or 24.1 percent of the firm, currently worth about $54 million