Target, Kohl's paid execs biggest bucks
Staff -- Home Textiles Today, 10/20/2003 12:00:00 AM
NEW YORK —
For a second straight year, Target Stores chairman and ceo Robert Ulrich nailed down the top spot as the most highly compensated retailer in America, taking home a paycheck of $18.2 million, roughly 50 percent more than second-ranked Lawrence Montgomery, ceo of Kohl's, who took home $12.2 million.
Ulrich's rich 2002 compensation package — salary plus bonus plus stock options — gave him a pay raise of slightly more than 20 percent over his 2001 earnings of $15.1 million. And it was more than triple the $6.0 million he made in 2000, when he was ranked just 12th in the Home Textiles Today Executive Compensation Report, when he actually earned less, though not for long, than Art Stark or Steven Temares at Bed Bath & Beyond.
Ulrich's package made him substantially better paid than even the ceo of Wal-Mart, the world's largest retailer. Ulrich pulled down more than four times as much as Wal-Mart chief Lee Scott's $4.4 million.
Seen from another perspective, Ulrich earned more last year — by more than 30 percent — than the combined total of $13.8 million made by all 21 senior executives of public home textiles companies ranked this year. No doubt most skippers at the major mills would like to reverse-auction that statistic.
Still ranked near the top, as they have been in recent years, are the two co-founders of the fabulously successful superstore chain Bed Bath & Beyond, Leonard Feinstein and Warren Eisenberg, tied at third for last year, each taking home a total of $12.0 million, mostly in stock options.
Given the particularly rocky environment for full-price retailers over the past two years, it's no surprise that department store merchants don't figure high on the list, coming in no better than 11th place. What may surprise some is that the best paid department store retailer last year, thanks to stock options, was Drue Corbusier, executive vp of Dillard's, at $4.2 million. Thanks to $3.0 million in options, Corbusier beat out his own boss, ceo William Dillard, as well as chief executives at Penney, Federated, Kmart and Sears.
Underlining the importance of all those stock options — vastly more valuable than base pay or bonus for successful senior executives — options made up 93 percent of the total compensation for Eisenberg and Feinstein at Bed Bath & Beyond, for example. Each cashed in options worth $11.1 million, compared with a relatively skimpy salary of $883,000. Options made up 90 percent of the pay package — $11 million our of a total of $12.1 million — for Kohl's Montgomery; and 67 percent of Ulrich's package at Target, $12.2 million of a total of $18.2.
Dollar amounts in thousands
|Name, Title||Company||Total cash, stock options exercised||Salary 2002||Bonus 2002||Long-term incentive plan||Total cash compensation||Value of stock options exercised||Total cash comp. 3-yr. % chg. 2000-2002|
|1. Girouard deferred all of his bonus for the year.
2. Chairman from Feb. 26, 2003.
3. President and ceo from Feb. 26, 2003.
4. Vice chairman from Feb. 26, 2003.
5. Ceased employment as an executive officer in Feb. 2003.
6. Joined the company on Feb. 1, 2000.
|Robert J. Ulrich, chairman and ceo||Target||$18,239||$1,423||$4,600||$0||$6,023||$12,216||60.9%|
|R. Lawrence Montgomery, ceo||Kohl's||12,232||968||273||0||1,241||10,991||9.7|
|Leonard Feinstein, co-chairman||Bed Bath & Beyond||11,952||883||0||0||883||11,069||17.7|
|Warren Eisenberg, co-chairman||Bed Bath & Beyond||11,952||883||0||0||883||11,069||17.7|
|Bart Butzer, executive vp of Target Stores||Target||11,304||642||835||0||1,477||9,827||0.1|
|Kevin B. Mansell, president||Kohl's||7,832||770||217||0||988||6,845||14.7|
|Arlene Meier, coo||Kohl's||6,913||631||178||0||809||6,104||20.6|
|Howard R. Levine, president and ceo||Family Dollar||6,565||600||481||0||1,081||5,485||41.4|
|Robert L. Nardelli, chairman, president and ceo||Home Depot||5,865||1,865||4,000||0||5,865||0||2796.0|
|Richard Leto, executive vp, gmm & product development||Kohl's||5,653||558||157||0||715||4,938||8.6|
|H. Lee Scott Jr., president & ceo||Wal-Mart||4,426||1,142||3,163||0||4,305||121||57.0|
|Drue Corbusie, executive vpr||Dillard's||4,209||500||645||0||1,145||3,064||129.0|
|Robert L. Tillman, chairman and ceo||Lowe's||4,000||1,000||3,000||0||4,000||0||146.1|
|Thomas M. Coughlin, executive vp., president & ceo Wal-mart stores division and Sam's Club USA||Wal-Mart||3,577||907||2,288||382||3,195||0||66.7|
|Edmond J. English, president and ceo||TJX||3,663||1,000||644||355||1,999||1,664||48.9|
|Marvin J. Girouard, chairman and ceo||Pier 1 Imports||3,636||900||1,9801||0||2,880||756||35.1|
|Allen Questrom, chairman and ceo||J.C.Penney||3,308||1,350||1,958||0||3,308||0||91.1|
|Alan Rosskamm, chairman, president and ceo||Jo-Ann Stores||3,192||584||567||0||1,151||2,041||139.3|
|Julian Day, president and ceo||Kmart||2,909||634||2,275||0||2,909||0||—|
|Alan J. Lacey, chairman and ceo||Sears, Roebuck||2,798||1,000||1,798||0||2,798||0||63.0|
|James M. Zimmerman2, chairman||Federated Dept. Stores||2,581||1,250||1,331||0||2,581||0||81.1|
|William Dillard II, ceo||Dillard's||2,496||710||1,375||0||2,085||411||193.7|
|Carol Meyrowitz, executive vp, president of the Marmaxx group||TJX||2,465||767||313||202||1,282||1,183||40.5|
|Alex Dillard, president||Dillard's||2,406||620||1,375||0||1,995||411||221.8|
|Thomas C. Shull, president and ceo||Hanover Direct||2,233||906||1,328||0||2,233||0||2877.9|
|Gregg W. Steinhafel, president of Target Stores||Target||2,052||896||1,156||0||2,052||0||49.3|
|Terry J. Lundgren3, president and ceo||Federated Dept. Stores||1,937||1,100||837||0||1,937||0||64.2|
|Eugene S. Kahn, chairman and ceo||May Dept. Stores||1,843||1,488||225||104||1,816||27||-13.2|
|R. Brad Martin, chairman and ceo||Saks||1,815||1,000||815||0||1,815||0||91.1|
|John H. Williams, Jr. vice chairman||Stein Mart||1,794||600||360||0||960||834||-8.6|
|Gerald L. Storch, vice chairman||Target||1,721||794||927||0||1,721||0||90.4|
|James A. Coggin, president and chief administrative officer||Saks||1,708||800||248||0||1,048||660||4.8|
|Francis S. Blake, ex vp - business development & corporate operations||Home Depot||1,675||475||1,200||0||1,675||0||—|
|John M Belk, chairman and ceo||Belk||1,667||783||750||133||1,667||0||128.9|
|Jay R. Jacobs, executive vp, merchandising||Pier 1 Imports||1,621||325||536||0||861||760||48.4|
|George L. Jones, president and ceo of Saks Department store group and coo of Saks||Saks||1,600||900||700||0||1,600||0||—|
|Mike Dillard, executive vp||Dillard's||1,596||540||645||0||1,185||411||119.4|
|V.J. Castagna, president, chairman and ceo, JCPenney stores, catalog & Internet||J.C.Penney||1,596||700||896||0||1,596||0||-9.4|
|Dale C. Pond, senior executive vp merchandising||Lowe's||1,554||518||1,036||0||1,554||0||123.5|
|Leon Levine, chairman||Family Dollar||1,534||1,000||534||0||1,534||0||4.5|
|Arnold S. Barron ex vp, coo of the Marmaxx Group||TJX||1,531||578||193||189||960||570||9.8|
|Stephen I. Sadove, vice chairman||Saks||1,512||980||532||0||1,512||0||—|
|Norman Axelrod, chairman and ceo||Linens'n Things||1,397||815||582||0||1,397||0||-23.1|
|R. David Alexander Jr., executive vp, coo||Family Dollar||1,345||300||160||0||460||885||39.0|
|William J. Podany, former president and ceo||ShopKo Stores||1,341||683||0||0||683||658||-11.1|
|J. Adamson, former ceo||Kmart||1,334||1,334||0||0||1,334||0||—|
|R. Tysoe, vice chairman||Federated Dept. Stores||1,264||825||439||0||1,264||0||43.7|
|Dennis J. Carey, former ex vp business strategy & corporate operations||Home Depot||1,200||600||600||0||1,200||0||122.1|
|Cal Turner Jr., chairman||Dollar General||1,174||800||374||0||1,174||0||51.5|
|Peter A. Maich, executive vp, group executive||TJX||1,147||664||256||226||1,147||0||-2.1|
|T. Cody4 vice chairman||Federated Dept. Stores||1,119||730||389||0||1,119||0||43.4|
|Kathryn Bufano, executive vp and gmm, softlines||Sears, Roebuck||1,085||500||585||0||1,085||0||—|
|Thomas M.Belk Jr. president, store divisions and real estate||Belk||1,084||576||442||67||1,084||0||102.7|
|H.W. McKay Belk, president, merchandising, marketing and merchandise planning||Belk||1,084||576||442||67||1,084||0||102.7|
|John L. Dunham, president||May Dept. Stores||1,060||931||89||40||1,060||0||2.5|
|Donald S. Shaffer, president and coo||Dollar General||976||639||337||0||976||0||—|
|William P. McNamara vice chairman||May Dept. Stores||845||760||58||27||845||0||-7.7|
|Jack W. Busby Jr. president and coo||Hancock Fabrics||843||235||124||0||359||483||0.9|
|Michael D. Fisher president and ceo||Stein Mart||840||525||315||0||840||0||66.4|
|Steven H. Temares president and ceo||Bed Bath & Beyond||833||833||0||0||833||0||31.6|
|Steven B. Silverstein5 president||Linens'n Things||734||467||267||0||734||0||-10.6|
|Michael J. Hopkins president, Pamida||ShopKo Stores||728||411||258||0||669||59||64.2|
|R. Hutchison executive vp, chief restructuring officer||Kmart||725||475||250||0||725||0||—|
|Gwen K. Manto6, vice chairman & chief merchandising officer||Stein Mart||670||500||170||0||670||0||-13.2|
|Dave Bolen executive vp, merchandising, marketing and logistics||Jo-Ann Stores||641||372||269||0||641||0||94.5|
|Audrey Schlaepfer executive vp, chief merchandising officer||Linens'n Things||515||415||100||0||515||0||—|
|Sam K. Duncan, president and ceo||ShopKo Stores||494||165||330||0||494||0||—|
|Arthur Stark sr. vp, chief merchandising officer||Bed Bath & Beyond||492||492||0||0||492||0||25.5|
|Larry G. Kirk, chairman and ceo||Hancock Fabrics||452||291||160||0||452||0||-1.3|
|Tom J. Hartshorn, executive vp, merchandising||Dollar General||396||268||129||0||396||0||96.4|
|James A. Austin, executive vp||Hancock Fabrics||384||204||99||0||303||81||—|
|John C. Beuttell, vp, international strategies||The Bombay Company||324||225||99||0||324||0||263.5|
|Stephen Farley, senior vp, marketing and merchandising||The Bombay Company||315||171||145||0||315||0||—|
|Jay Stein chairman||Stein Mart||300||300||0||0||300||0||-72.7|
|Carmie Mehrlander, former chairman, president and chief executive officer||The Bombay Company||299||271||0||0||271||28||-61.7|
|Charles Conaway, former ceo||Kmart||188||188||0||0||188||0||-97.9|
Retail Stock Options Exercised
Options were always designed to reward superior performance, and that's exactly the way it worked out for the retailers with the biggest paycheck this year, from Target, Kohl's and Bed Bath & Beyond — three of the strongest performers in all of American retailing.
|Robert J. Ulrich, Target||$12,215,878|
|Warren Eisenberg, Bed Bath & Beyond||11,069,000|
|Leonard Feinstein, Bed Bath & Beyond||11,069,000|
|R. Lawrence Montgomery, Kohl's||10,990,867|
|Bart Butzer, Target||9,826,621|
|H. Lee Scott, Wal-Mart||$121,000|
|James A. Austin, Hancock Fabrics||81,225|
|Michael J. Hopkins, ShopKo Stores||59,228|
|Carmie Mehrlander, The Bombay Co.||27,696|
|Eugene S. Kahn, May Dept. Stores||26,864|
Retail Cas Bonuses
|Robert J. Ulrich, Target||$4,600,000|
|Robert L. Nardelli, Home Depot||4,000,000|
|H. Lee Scott, Wal-Mart||3,162,500|
|Robert L. Tillman, Lowe's||3,000,000|
|Thomas M. Coughlin||2,287,500|
|Audrey Schlaepfer, Linens 'n Things||$100,000|
|John C. Beuttell, The Bombay Co.||99,362|
|James A. Austin, Hancock Fabrics||99,040|
|John L. Dunham, May Dept. Stores||89,063|
|William P. McNamara, May Dept. Stores||58,125|
(straight salary, excluding bonus, other cash compensation and stock options)
|Robert L. Nardelli, Home Depot||$1,865,384|
|Eugene S. Kahn, May Dept. Stores||1,487,500|
|Robert J. Ulrich, Target||1,423,014|
|Allen Questrom, J.C.Penney||1,350,000|
|J. Adamson, Kmart||1,334,281|
|John C. Beuttell, The Bombay Co.||$225,000|
|James A. Austin, Hancock Fabrics||204,231|
|Charles Conaway, Kmart||187,500|
|Stephen Farley, The Bombay Co.||170,769|
|Sam K. Duncan, ShopKo Stores||164,519|
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