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Retailers Raking It In

By Don Hogsett -- Home Textiles Today, 11/14/2005 12:00:00 AM

New York— —

New York— Turnaround maestro Allen Questrom, who engineered the revival of J.C. Penney before departing, took home the single-biggest compensation package in the American retailing industry, a $68.2 million paycheck, most of it in the form of stock options.

It was the single-biggest payout recorded in the six-years HTT has been tracking retail compensation. And it beats by more than $15 million the previous record of $52.8 million earned in 2003 by Warren Eisenberg and Leonard Feinstein, the founders and co-chairmen of the big-box retailer Bed Bath & Beyond.

The $68.2 million taken to the bank by Questrom is almost twice as much as the $38.3 million earned in 2004 by runner-up Robert Ulrich, chairman and CEO of Target, or the $36.7 million tucked away by Arlene Meier, chief operating officer at Kohl's, itself on something of a turnaround track.

In fourth spot in this year's HTT Executive Compensation ranking was another Target exec, President Gregg Steinhaffel, far behind at $12.1 million. Steven Temares, president and CEO of Bed Bath & Beyond, claimed fifth position with his $10.2 million, just nudging past colleague Arthur Stark, chief merchandising officer at the big box, with $9.8 million.

By comparison, Eisenberg and Feinstein, the Bed Bath & Beyond co-founders, took home far less than Temares and Stark, who work for them. The big difference last year, as it almost always is, was stock options — Temares and Stark both exercised them, inflating their base, while their bosses took home a $1.1 million cash salary.

Jay Schottenstein, chairman of Retail Ventures, parent of Value City and Filene's Basement, took home $250,000. And Jay Stein, former CEO of Stein Mart and still chairman of the chain that bear's his family's name, earned not much more, $400,000. Jeffrey Brotman, chairman of Costco, the warehouse retailer, took home $550,000.

M.E. Ullman, who took over as chairman and CEO of J.C. Penney, took home a dime for every dollar that his predecessor Allen Questrom made last year, $657,000 versus Questrom's bounty. But then, Ullman had been on the job for only a month, since Dec. 1, 2004.

Executive Compensation: Retailers
dollar amounts in thousands

Name, Title	Company	Total cash, stock options exercised	Salary 2004	Bonus 2004	Long-term incentive plan	Total cash compensation	Value of stock options exercised	Total cash comp. 3-yr. % change 2002–2004
1. Left company on Dec. 22, 2004. 2. Left company on Nov. 30, 2004. 3. President and CEO from Feb. 26, 2003, chairman from Jan. 15, 2004. 4. Became executive officer Nov., 2004. 5. Employment ceased Oct., 2004. 6. Elected chairman in January 2003. 7. Elected president and chief operating officer in January, 2003. 8. Became executive officer Sept., 2004. 9. Data from S-1 filed with the SEC on May 5, 2005. 10. Employed Sept., 2003. 11. Became an executive officer Sept., 2003. 12. Joined company on Dec. 1, 2004. 13. Ceased employment in Nov., 2004. 14. Became evice president of merchandising in July, 2004. 15. Resigned Jan., 2005. 16. Assumed position in Feb., 2004. 17. Employed Oct., 2004. 18. Joined company March, 2004. 19. Resigned April 25, 2005. 20. Assumed position in Aug., 2004. 21. Joined company June, 2004 22. Elected to take stock in lieu of salary. NA = 3-year data not available
Allen Questrom¹ former chairman and CEO	J.C.Penney	$68,239	$1,203	$2,160	$0	$3,363	$64,876	1.7%
Robert J. Ulrich chairman and CEO	Target	38,317	1,574	5,000	0	6,574	31,743	9.1%
Arlene Meier chief operating officer	Kohl's	36,741	732	0	0	732	36,009	-9.5%
Gregg W. Steinhafel president	Target	12,070	947	854	0	1,802	10,268	-12.2%
Steven H. Temares president and CEO	Bed Bath & Beyond	10,222	1,031	0	0	1,031	9,191	23.8%
Arthur Stark senior vice president, chief merchandising officer	Bed Bath & Beyond	9,804	613	0	0	613	9,191	24.6%
R. Lawrence Montgomery CEO	Kohl's	8,820	1,022	0	0	1,022	7,798	-17.6%
Alex Dillard president	Dillard's	8,447	620	1,830	0	2,450	5,997	22.8%
William Dillard II CEO	Dillard's	8,419	710	1,830	0	2,540	5,879	21.8%
Robert L. Nardelli chairman, president and CEO	Home Depot	7,750	2,000	5,750	0	7,750	0	32.1%
V.J. Castagna² former chairman and CEO, JCPenney stores, catalog & Internet	J.C.Penney	6,129	617	1,045	0	1,662	4,468	4.1%
Herbert Zarkin chairman	BJ's	5,961	525	0	0	525	5,436	50.0%
Kevin B. Mansell president	Kohl's	5,834	893	0	0	893	4,941	-9.6%
W. Howard Lester chairman	Williams-Sonoma	5,671	975	731	0	1,706	3,965	-24.5%
H. Lee Scott, Jr. president and CEO	Wal-Mart	5,367	1,242	4,125	0	5,367	0	24.7%
Carol Meyrowitz former senior vice president, president of the Marmaxx group	TJX	5,044	891	659	333	1,883	3,161	46.9%
Terry J. Lundgren³ chairman, president and CEO	Federated Dept. Stores	4,562	1,253	3,309	0	4,562	0	135.5%
Edmond J. English president and CEO	TJX	4,406	1,267	834	531	2,633	1,774	31.7%
Mike Dillard executive vice president	Dillard's	4,396	540	854	0	1,394	3,002	17.6%
Robert L. Tillman chairman and CEO	Lowe's	3,814	1,000	2,814	0	3,814	0	-4.7%
Peter A. Maich senior vice president, group president	TJX	3,782	754	331	241	1,326	2,456	15.6%
John B. Menzer executive vice president and president and CEO International Division	Wal-Mart	2,996	872	1,923	0	2,795	202	21.6%
Marvin J. Girouard chairman and CEO	Pier 1 Imports	2,812	1,000	0	0	1,000	1,812	-65.3%
Alan J. Lacy chairman, president and CEO	Sears, Roebuck	2,735	1,024	769	0	1,792	943	-35.9%
Alexander W. Smith senior vice president, group president	TJX	2,472	888	419	201	1,507	965	84.0%
Robert A. Niblock president	Lowe's	2,419	730	1,689	0	2,419	0	N.A
Heywood Wilansky⁴ president and CEO	Retail Ventures	$2,372	$767	$800	$805	$2,372	$0	N.A
Michael T. Wedge president and CEO	BJ's	2,216	757	636	0	1,392	823	147.8%
Laura Alber president, Pottery Barn Brands	Williams-Sonoma	2,193	474	246	0	720	1,473	-27.7%
Larry D. Stone senior vice president-operations	Lowe's	1,975	702	1,273	0	1,975	0	-2.5%
John H. Costello executive vice president, merchandising and marketing	Home Depot	1,942	676	725	0	1,401	542	71.6%
Michael D. Fisher president and CEO	Stein Mart	1,831	624	882	0	1,506	324	79.3%
John C. Rossler former president and CEO	Retail Ventures	1,807	735	267	805	1,807	0	7.6%
Patrick J. Connolly executive vice president, chief marketing officer	Williams-Sonoma	1,777	532	190	0	722	1,055	-27.8%
Dale C. Pond senior vice president merchandising/marketing	Lowe's	1,726	575	1,043	0	1,618	108	4.1%
Julian Day⁵ former president and CEO	Kmart	1,712	712	1,000	0	1,712	0	-41.2%
Edward Mueller CEO	Williams-Sonoma	1,706	975	731	0	1,706	0	4450.1%
Thomas M.Belk Jr. chairman and CEO	Belk	1,657	670	705	282	1,657	0	52.8%
Eugene S. Kahn former chairman and CEO	May Dept. Stores	1,599	1,500	0	0	1,500	99	-17.4%
Michael T. Duke vice president and president and CEO Wal-Mart stores division	Wal-Mart	1,535	662	873	0	1,535	0	20.0%
David A. Perdue chairman and CEO	Dollar General	1,526	920	606	0	1,526	0	N.A
K.C. Hicks president and chief merchandising officer	J.C.Penney	1,513	672	538	0	1,209	303	105.0%
Arnold S. Barron executive vice president, group president	TJX	1,466	668	264	213	1,144	322	19.2%
H.W. McKay Belk president and chief merchandising officer	Belk	1,451	607	562	282	1,451	0	33.8%
John R. Belk president and chief operating officer	Belk	1,451	607	562	282	1,451	0	33.8%
Mindy C. Meads president & CEO of Sears, Roebuck, Lands' End executive vice president	Sears, Roebuck	1,395	594	222	0	817	579	22.3%
Alan Rosskamm chairman, president and CEO	Jo-Ann Stores	1,358	669	378	0	1,047	311	-9.0%
Drue Corbusier executive vice president	Dillard's	1,354	500	854	0	1,354	0	18.3%
John L. Dunham chairman, president and CEO	May Dept. Stores	1,186	1,042	0	79	1,121	65	5.7%
Howard R. Levine chairman and CEO⁶	Family Dollar	1,172	727	446	0	1,172	0	8.5%
Leonard Feinstein co-chairman	Bed Bath & Beyond	1,081	1,081	0	0	1,081	0	22.4%
Warren Eisenberg co-chairman	Bed Bath & Beyond	1,081	1,081	0	0	1,081	0	22.4%
Kathleen Mason president and CEO	Tuesday Morning	1,048	550	498	0	1,048	0	55.3%
R. David Alexander, Jr. president and chief operating officer⁷	Family Dollar	1,024	402	148	0	550	474	19.5%
Norman Axelrod chairman and CEO	Linens 'n Things	1,019	893	1260	1,019	0	-25.4%	N.A
Jay H. Levitt president and CEO, May	May Dept. Stores	1,012	690	0	31	721	291	2.5%
Mary R. Delk president, merchandising and marketing	Belk	985	507	313	165	985	0	97.5%
Luis A. Padilla⁸ president, merchandising	Sears, Roebuck	971	221	750	0	971	0	N.A
Jay R. Jacobs executive vice president, merchandising	Pier 1 Imports	959	365	0	0	365	594	-57.6%
Edwin J. Kozlowski former executive vice president and chief operating officer	Retail Ventures	915	525	190	200	915	0	-10.4%
William P. McNamara vice chairman	May Dept. Stores	897	829	0	37	866	32	2.5%
Jack E. Moore president and chief operating officer	Linens 'n Things	870	310	560	0	870	0	N.A
Larry G. Kirk chairman and CEO	Hancock Fabrics	865	325	21	0	346	520	-23.5%
Alan Gladstone⁹ president, CEO and chairman	Anna's Linen	$850	$450	$400	$0	$850	$0	N.A
W.B. Johnson¹⁰ senior vice president, supply chain and operations	Kmart	816	650	166	0	816	0	N.A
Stonie R. O'Briant executive vice president, merchandising, marketing and strategic planning	Dollar General	755	381	174	0	556	199	9.6%
L. Schultz¹¹ senior vice president, chief creative officer	Kmart	677	500	177	0	677	0	N.A
M.E. Ullman, III¹² chairman and CEO	J.C.Penney	657	250	407	0	657	0	N.A
Matthew Fiorilli senior vice president, stores	Bed Bath & Beyond	613	613	0	0	613	0	25.1%
John M. Belk chairman emeritus	Belk	601	284	0	317	601	0	-64.0%
Dave Bolen executive vice president, merchandising and marketing	Jo-Ann Stores	575	414	161	0	575	0	-10.4%
James D. Sinegal president and CEO	Costco	550	350	200	0	550	0	57.1%
Jeffrey H. Brotman chairman of the board	Costco	550	350	200	0	550	0	57.1%
Gary G. Friedman chairman, president and CEO	Restoration Hardware	540	540	0	0	540	0	29.9%
W. Craig Jelinek executive vice president, chief operating officer-merchandising	Costco	537	455	82	0	537	0	17.3%
Kathleen R. Guion executive vice president, store operations and store development	Dollar General	521	358	163	0	521	0	N.A
F. David Coder senior vice president, store operations	Linens 'n Things	501	320	25	0	346	155	0.4%
Donald A. Brennan executive vice president, general merchandising manager	Kohl's	492	442	50	0	492	0	-7.9%
Michael D. Ray senior vice president, director of stores	Stein Mart	488	238	216	0	454	34	78.0%
Edward F. Giles executive vice president, club operations	BJ's	444	333	112	0	444	0	39.8%
Michael J. Marchetti executive vice president and chief operating officer	Tuesday Morning	444	344	100	0	444	0	58.0%
Bruce E. Barkus executive vice president-store operations	Family Dollar	434	277	81	0	357	76	5.2%
Brian N. Priddy executive vice president, operations	The Bombay Company	430	315	0	0	315	115	-32.7%
Audrey Schlaepfer¹³ former executive vice president, chief merchandising officer	Linens 'n Things	407	407	0	0	407	0	-18.7%
Karen Stout¹⁴ executive vice president, merchandising	BJ's	389	216	173	0	389	0	N.A
Stephen Gordon¹⁵ former chairman	Restoration Hardware	367	367	0	0	367	0	0.9%
Stephen Farley former executive vice president, marketing and merchandising	The Bombay Company	324	267	0	0	267	57	-15.5%
Jay Stein chairman	Stein Mart	300	300	0	0	300	0	0.0%
Marta H. Benson¹⁶ senior vice president, merchandise & marketing	Restoration Hardware	293	293	0	0	293	0	N.A
A. Lewis¹⁷ president and CEO	Kmart	292	292	0	0	292	0	N.A
E. Mitchell Weatherly evice president, stores	Pier 1 Imports	280	280	0	0	280	0	-56.9%
Jay L. Schottenstein chairman	Retail Ventures	250	250	0	0	250	0	0.0%
John F. Reeves¹⁸ senior vice president, general merchandising manager	Tuesday Morning	243	223	20	0	243	0	N.A
James A. Austin¹⁹ executive vice president & chief operating officer	Hancock Fabrics	235	222	13	0	235	0	-22.6%
John W. Tate²⁰ executive vice president, chief operating officer	Restoration Hardware	215	190	25	0	215	0	N.A
Russell Brown vice president-store operations	Anna's Linen	173	150	23	0	173	0	N.A
Kevin McLain vice president-general merchandise	Anna's Linen	160	110	50	0	160	0	N.A
Carie Doll senior vice president, marketing & merchandising	Anna's Linen	160	110	50	0	160	0	N.A
Ross E. Manning²¹ senior vice president, general merchandising manager	Tuesday Morning	152	127	25	0	152	0	N.A
James D. Carreker CEO	The Bombay Company	0²²	0²²	0²²	0	0	0	N.A

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