Retailers Raking It In
By Don Hogsett -- Home Textiles Today, 11/14/2005
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.
| 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 |
| Allen Questrom 1 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. Castagna 2 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. Lundgren 3 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 Wilansky 4 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 Day 5 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. Padilla 8 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 Gladstone 9 president, CEO and chairman | Anna's Linen | $850 | $450 | $400 | $0 | $850 | $0 | N.A |
| W.B. Johnson 10 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. Schultz 11 senior vice president, chief creative officer | Kmart | 677 | 500 | 177 | 0 | 677 | 0 | N.A |
| M.E. Ullman, III 12 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 Schlaepfer 13 former executive vice president, chief merchandising officer | Linens 'n Things | 407 | 407 | 0 | 0 | 407 | 0 | -18.7% |
| Karen Stout 14 executive vice president, merchandising | BJ's | 389 | 216 | 173 | 0 | 389 | 0 | N.A |
| Stephen Gordon 15 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. Benson 16 senior vice president, merchandise & marketing | Restoration Hardware | 293 | 293 | 0 | 0 | 293 | 0 | N.A |
| A. Lewis 17 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. Reeves 18 senior vice president, general merchandising manager | Tuesday Morning | 243 | 223 | 20 | 0 | 243 | 0 | N.A |
| James A. Austin 19 executive vice president & chief operating officer | Hancock Fabrics | 235 | 222 | 13 | 0 | 235 | 0 | -22.6% |
| John W. Tate 20 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. Manning 21 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 |
| 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 |
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