FEDERATED’S ZIMMERMAN GETS HANDSOME PAY HIKE
NEW YORK — Rewarded for a solid year, James M. Zimmerman, Federated Department Stores’ chairman and chief executive, saw his compensation surge to $8.5 million in 1999 from $3.2 million in 1998.
The salary hike reflects a jump in annual bonus to $1.98 million from $922,000 for 1998 and $4.2 million in restricted stock awards versus no such awards in 1998. Zimmerman also received a $1.25 million base salary, $193,500 in long-term incentive payouts and $182,129 in other compensation, of which $72,972 represented merchandise discounts and the use of company aircraft.
Zimmerman also realized $4.5 million from exercising options on 125,000 shares, and received options last year to buy 450,000 shares at $46.75 each.
Higher bonuses also lifted compensation for the rest of Federated’s top executives: Terry J. Lundgren, president and chief merchandising officer, earned $2.8 million against $2.2 million; Ronald W. Tysoe, vice chairman of finance and real estate, $1.9 million against $1.45 million; Thomas G. Cody, executive vice president of law and human resources, $1.66 million versus $1.33 million, and Karen M. Hoguet, senior vice president and chief financial officer, $970,135 against $680,506.
Federated’s compensation committee said operating earnings, return on gross investment and profit margin in 1999 all exceeded previously established targets. Profits for the department store conglomerate rose 20 percent last year to $795 million, or $3.62 a share, as sales advanced 15.3 percent to $18.2 billion.