PAY DAYS: Floyd Hall, chairman and chief executive officer of Kmart Corp., received annual compensation of $2.7 million in 1996, up from the $1.7 million his salary and bonus totaled in 1995, according to the retailer’s recently released proxy statement. Hall’s complete compensation package, including options and restricted stock awards, fell to $4.4 million from $8 million.
Hall, who joined Kmart in June 1995, last year had a base salary of $1 million, a bonus of $1.7 million, and restricted stock awards valued at $1.5 million. He also received 900,000 stock options at an exercise price of $10.63 a share. In 1995, Hall got a $660,300 base salary, $1 million bonus, $6.4 million in restricted stock awards, and 3,450,000 in stock options exercisable at $12.75 each.
Kmart closed at 12 3/4, down 1/8, Tuesday on the New York Stock Exchange.
The proxy notes that Hall’s bonus and stock awards were triggered by Kmart’s “significantly exceeding its 1996 financial goal and the achievement of [his] individual financial and personal performance objectives.”
Under Hall’s leadership, Kmart has closed some 200 money-losing stores, built a new management team, eliminated approximately $700 million in unproductive inventory, and did a capital restructuring through a $1 billion public securities offering and a new $3.7 billion credit agreement.
The roster of Kmart’s five best-paid executives also includes Warren Flick, president and chief operating officer of Kmart’s U.S. stores, whose total compensation last year came to $2.9 million, up from $1.5 millon. The 1996 package included options for 250,000 shares exercisable at $7.81 each and 500,000 shares exercisable at $10.00.
Also taking home top pay packages were Ronald J. Floto — who resigned Tuesday as executive vice president and president of Super Kmart Centers — rising to $1.2 million from $603,280; Marvin B. Rich, executive vice president of strategic planning, finance and administration, $1.2 million versus $603,280; and Donald W. Keeble, executive vice president of store operations, $861,200 against $424,620.