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Retailers Raking It In

Don Hogsett -- Home Textiles Today, October 17, 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.

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 No., 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 filled 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 operatons 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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