View Slideshow

The compensation of retail executives pales in comparison to the renumeration of fashion designers. Tommy Hilfiger, for example, earned $18.3 million in 2003, while the highest-paid retailer on the list, H. Lee Scott, chief executive officer of Wal-Mart, received $5.39 million in salary and bonus in 2003. Such is the benefit of having your name on the label. Consider that Scott helms the world’s largest retailer; Wal-Mart’s sales were $256 billion in 2003, while Hilfiger’s firm’s volume was $1.8 billion last year. When compared with many other ceo’s on the Fortune 500 list, the compensation of both retailers and designers come up short.

This story first appeared in the July 8, 2004 issue of WWD. Subscribe Today.

  1. H. LEE SCOTT, 55, PRESIDENT, CEO, Wal-Mart Stores Inc.
    2003 salary: $1.19 million; bonus: $4.2 million;
    total: $5.39 million; percent change from 2002: 25.3

    It pays to be holding the reins at the world’s largest company. Scott’s $4.2 million bonus – essentially responsible for the increase in compensation – resulted from the retailer reaching “the maximum level of pre-tax profit performance goals” as determined by a compensation committee.
  2. ROBERT J. ULRICH, 60, CHAIRMAN, CEO, Target Corp.
    2003 salary: $1.57 million; bonus: $3.3 million;
    total: $4.87 million; percent change: –19.1

    Ulrich’s bonus was based on pre-tax operating contribution, economic value added and a personal score. It could have been as high as 400 percent of his base salary. Despite sales rising to $48.16 billion in 2003 from $43.92 billion in 2002, Ulrich’s bonus and total compensation slid 19.1 percent.
  3. PAUL S. PRESSLER, 47, PRESIDENT, CEO, Gap Inc.
    2003 salary: $1.5 million; bonus: $3.1 million;
    total: $4.6 million; percent change: 224.1

    An employment agreement that guaranteed a bonus of $1.9 million in 2003 pushed Pressler into the upper echelon of executive pay. This, on top of a performance award of $1.2 million. The company also picked up various relocation expenses when the ceo moved to San Francisco.
  4. LESLIE H. WEXNER, 66, CHAIRMAN, CEO, Limited Brands Inc.
    2003 salary: $1.55 million; bonus: $2.91 million;
    total: $4.46 million; percent change: 2.1

    For Limited’s compensation committee, performance is the key. A 6 percent increase in net sales to $8.93 billion was enough to warrant a 4 percent increase in Wexner’s base salary as well as a performance-based bonus.
  5. JAMES ZIMMERMAN, 60, FORMER CHAIRMAN, Federated Department Stores Inc.
    2003 salary: $1.25 million; bonus: $2.76 million;
    total: $4.01 million; percent change: 55.7

    Zimmerman ceded his duties as CEO February 26, 2003 and relinquished the role of chairman January 15, 2004. Nonetheless, his bonus increased, while his salary stayed the same.
  6. THOMAS M. COUGHLIN, 54, VICE CHAIRMAN, Wal-Mart Stores Inc.
    2003 salary: $983,894; bonus: $2.87 million;
    total: $3.86 million; percent change: 20.9

    Having been with Wal-Mart since August 1978, Coughlin is currently responsible for the U.S. operations of Wal-Mart Discount Stores, Supercenters, Neighborhood Markets, Sam’s Clubs and Walmart.com. The rise in his compensation is due to salary and bonus increases.
  7. TERRY LUNDGREN, 52, CHAIRMAN, CEO, Federated Department Stores Inc.
    2003 salary: $1.19 million; bonus: $2.49 million;
    total: $3.68 million; percent change: 90.4

    According to his employment agreement, Lundgren will serve as president and ceo until February 28, 2007, receiving a base salary of $1.25 million a year. His salary increase is attributable to his bonus, which nearly doubled from 2002.
  8. LEONARD SCHLESINGER, 51, VICE CHAIRMAN, COO, Limited Brands Inc.
    2003 salary: $993,269; bonus: $2.51 million;
    total: $3.5 million; percent change: 91.9

    Schelsinger’s promotion from executive vice president, a position he held since 2001, to vice chairman came with a bonus of $1 million, sending his salary soaring 91.9 percent in 2003.
  9. ALLEN QUESTROM, 63, Chairman, CEO, J.C. Penney Co. Inc.
    2003 salary: $1.35 million; bonus: $2.02 million;
    total: $3.37 million; percent change: 2

    Exceeding performance targets for the year entitled Questrom to a bonus of $2 million, or 150 percent of his base salary. Questrom had the potential to earn up to 200 percent of his base in bonus pay. Of an additional $99,662, $76,018 was used for “airfare and transportation.”
  10. SUSAN D. KRONICK, 52, VICE CHAIRMAN, Federated Department Stores Inc.
    2003 salary: $983,333; bonus: $1.84 million;
    total: $2.82 million; percent change: 122

    According to the company’s established bonus plan, Kronick received $997,500 in 2003. However, it was a retention payment of $846,000 awarded in August 2000 and finally paid in 2003 that sent her salary soaring for the year.
  11. JOHN B. MENZER, 53, PRESIDENT, CEO OF INTERNATIONAL, Wal-Mart Stores Inc.
    2003 salary: $816,538; bonus: $1.85 million;
    total: $2.67 million; percent change: 16.2

    Menzer’s division returned $40.8 billion in sales for 2003. He runs operations in Argentina, Brazil, Canada, China, Germany, Japan, Korea, Mexico, Puerto Rico and the United Kingdom. In 2003, he led the acquisition of Japanese retailer Seiyu Ltd., which generated $9 billion in revenue.GREG
  12. WEAVER, 50, CHAIRMAN, CEO, Pacific Sunwear of California Inc.
    2003 salary: $850,000; bonus: $1.7 million;
    total: $2.55 million; percent change: 25

    Weaver’s bonus was centered on the company reaching earnings-per-share targets throughout the year. Weaver has served as ceo since 1996 and chairman since 1997.
  13. JULIAN R. GEIGER, 58, CHAIRMAN, CEO, Aeropostale Inc.
    2003 salary: $600,002; bonus: $1.8 million;
    total: $2.4 million; percent change: 35.5

    Geiger, the former president and ceo of Federated’s specialty store division when Federated owned Aeropostale, gets no bonus unless there is an increase in consolidated
    net income. Targets were met this year, pushing his salary up 35.5 percent.
  14. BURTON M. TANKSY, 65, PRESIDENT, CEO, Neiman Marcus Group
    2003 salary: $1.2 million; bonus: $1.1 million;
    total: $2.27 million; percent change: 19.6

    The strength of the affluent consumer translated into higher sales at high-end retailers like Neiman Marcus. It also translated into a boost in Tansky’s bonus.
  15. THOMAS COLE, 55, VICE CHAIRMAN, Federated Department Stores Inc.
    2003 salary: $745,000; bonus: $1.5 million;
    total: $2.25 million; percent change: 90.9

    Under the company’s established bonus plan, Cole received a bonus of $748,100. As was the case with Federated’s Kronick, Cole also received a retention payment of $758,000 that pushed his salary up 90 percent.
  16. EUGENE S. KAHN, 54, CHAIRMAN AND CEO, May Department Stores Co.
    2003 salary: $1.5 million; bonus: $675,000;
    total: $2.17 million; percent change: 27

    According to the company, Kahn was eligible to receive a bonus of up to 90 percent of his base salary. Based on the achievement of certain performance levels, the company determined Kahn was warranted a bonus representing 45 percent of his base salary.
  17. JANET GROVE, 52, VICE CHAIRMAN, Federated Department Stores Inc.
    2003 salary: $741,667; bonus: $1.41 million;
    total: $2.15 million; percent change: 65.1

    Rounding out the five executives from Federated who broke into the ranks of the top 20 in 2003 is Grove, who received an annual bonus of $689,000 and a retention payment of $729,000. Grove’s overall compensation spiked 65.1 percent as a result.
  18. R. BRAD MARTIN, 52, CEO, Saks Inc.
    2003 salary: $1.05 million; bonus: $1.07 million;
    total: $2.12 million; percent change: 17.2

    While Martin’s base salary is $1 million, his employment agreement allows for an annual cash bonus of up to 200 percent of the base and up to 40,000 shares of unrestricted stock. Martin in 2003 got a $1.1 million bonus, representing approximately 54 percent of his bonus potential.
  19. HOWARD SOCOL, 58, CHAIRMAN, PRESIDENT AND CEO, Barneys New York Inc.
    2003 salary: $1.05 million; bonus: $1.01 million;
    total: $2.06 million; percent change: –10.3

    Socol, with a minimum base salary of $1 million, has the potential to earn a bonus of up to 125 percent of his salary. Socol received an additional $48,227 in compensation, $12,147 of which was used for a clothing allowance and $31,416 for “tax consulting professional fees.”
  20. BLAKE W. NORDSTROM, 43, PRESIDENT, Nordstrom Inc.
    2003 salary: $700,000; bonus: $1.31 million;
    total: $2.01 million; percent change: 21.4

    Nordstrom’s $1.3 million bonus came from a $787,500 cash award and the granting of $525,000 worth of restricted stock. The total award represented 187.5 percent of Nordstrom’s base salary, the maximum payout possible under the company’s compensation matrix.

SOURCE: COMPANY REPORTS. AGE AS OF DATE OF PROXY FILING. For an extended list of the highest-paid retail executives in the u.s., see wwd.com.

For an extended list of Executive Compensation from theapparel, footwear and specialty retail channels, click here.