NEW YORK — Millard Drexler, president and chief executive of Gap Inc., received another pay hike in 1999 as his combined salary and bonuses jumped 7 percent to more than $7.8 million from $7.3 million, according to the specialty retailer’s proxy statement.
Drexler’s bonus climbed 6 percent to $5.7 million, the maximum amount allowed under Gap’s incentive plan, according to the document filed with the Securities and Exchange Commission Monday. Gap’s compensation committee said under Drexler, Gap achieved record earnings and surpassed its financial goals for the year. Gap also increased Drexler’s base pay 6 percent to about $2.2 million.
As reported, Gap’s 1999 earnings climbed 36.7 percent to $1.13 billion, or $1.26 a share. Not included in the $7.8 million was additional compensation related to taxes and other benefits totaling $34,112. Last year, Drexler received $492,896 in other compensation, mainly for retirement plan contributions.
However, Drexler’s 1999 options on 120,000 shares of stock was far below last year’s award of 5.4 million. During 1999, Drexler realized $6.5 million from exercising options and he still holds exercisable and unexercisable options worth $685 million, according to the proxy.
Gap shares gained 3/16 to close at 50 on the New York Stock Exchange Monday. In the last 52 weeks the shares have traded as high as 53 3/4 and as low as 30 13/16.
John B. Wilson, Gap’s chief operating officer, was the firm’s second-highest-paid executive. He earned $2.9 million against $2.3 million and realized $17.4 million from exercising stock options. Wilson was awarded options on 75,000 shares. In 1999, Wilson also received a $3 million noninterest loan from Gap, secured by a third deed of trust on his home and by his stock options.
Gap chairman and co-founder, Donald G. Fisher, earned $1.1 million, up $66,815 from last year. Fisher and his wife Doris, who founded the company with him, own 180.6 million shares, or about 21.2 percent of Gap’s stock. In 1999 Gap paid $485.3 million to Fisher Development, a company wholly owned by Donald Fisher’s brother Robert and his immediate family.