Calvin McDonald, chief executive officer of Lululemon Athletica Inc., saw his compensation fall 6.2 percent to $10.6 million last year.
Over half of his pay — $6 million — came in the form of stock or option awards that tie his ultimate compensation to the value of the company’s stock. Given share price fluctuations and vesting schedules, he might never see a payout from the stock and options.
But he did get a salary of $1.2 million, incentive pay of $1.9 million and other compensation totaling $1.5 million, most of which came in the form of $1.3 million in relocation costs tied to his August 2018 appointment as CEO. His pay was detailed in the company’s annual proxy statement, filed with the Securities and Exchange Commission ahead of its annual meeting on June 9.
Public companies have been detailing pay packages for top executives in recent weeks and while McDonald is among the highest-paid people in fashion and retail, he’s not at the top of the list. So far in the tally this year, that position goes to Walmart Inc. CEO Doug McMillon, whose compensation including stock last year totaled $22.6 million.
At Lululemon, McDonald has overseen a remarkable run. The company has a market capitalization of $46 billion — making it worth more than a long list of companies tied to fashion, including mall giant Simon Property Group ($40.2 billion), VF Corp. ($34.9 billion), Ulta Beauty Inc. ($18.2 billion), Farfetch ($18.1 billion) and Tapestry Inc. ($13.2 billion).
But as much as Lululemon’s valuation outstrips so many, it has big competitors, including Nike Inc., with a market capitalization of $209 billion. (Walmart ranks as having the largest retail market cap — over $389 billion).
Despite the pandemic, Lululemon proved itself to be a company on the move last year.
The firm’s revenues rose 11 percent to $4.4 billion as the company opened its 100th store in the Asia-Pacific region and, in June, bought the in-home fitness company Mirror.
To keep up its momentum, the company is focused on a strategic plan that is heavy on product innovation, “omni-guest experience” and market expansion.
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