Retail chiefs still well compensated
November 4, 2002-- Home Textiles Today,
If you're looking for the one thing that separates retailers from their suppliers, the salient fact that sums up the relationship between these greater and lesser partners in a shifting, increasingly uneasy relationship, consider this: In 2001, the highest-paid supplier earned only a tenth as much as the highest-paid retailing executive.
Once his stock options were factored in, Mohawk Home's Bill Kilbride made $1.5 million in 2001 as the highest paid home textiles exec in the United States. But several links up on the food chain, Target ceo Bob Ulrich made 10 times as much, an easy 10 dollars for every one that Kilbride took home, a grand total of $15.1 million in combined salary, bonus and stock options.
And the comparison becomes even more striking when looked at another way — last year, Bob Ulrich, with his $15.1 million pay package, made 53.0 percent more than the combined compensation packages of all 22 senior executives of public home textiles companies ranked in the 2002 edition of the Home Textiles Today Executive Compensation Report — they pulled down a relatively paltry total of $9.9 million. For that matter, each of the five most highly paid retail execs in this year's ranking made more than all of the textiles execs put together.
Top dogs in this year's retailer ranking, their pay rocketing higher in lockstep with sales and earnings of their company, are the two top managers at Target Corp., ceo Ulrich and Target Stores chief Gregg Steinhafel, who came in second in this year's ranking with $14.9 million in compensation.
Nailing down third place, and earning more than his bosses, is Steve Temares, president and coo of rocket-hot Bed Bath & Beyond, who banked $13.5 million, more than twice as much as co-founders Warren Eisenberg and Leonard Feinstein, each of whom took home $6.1 million during 2001.
Notably, Bed Bath & Beyond is one of the few American retailers to reward one of its front-line merchants, chief merchandising officer Arthur Stark, who pulled down $4.8 million for his role in securing the chain's position as the top specialty retailer of home fashions products.
In fourth place this year is another Target exec, vice chairman Gerald Storch, with $13.1 million. He's followed by Kohl's ceo Lawrence Montgomery, with a $10.4 million compensation package.
Home Textiles Today's Executive Compensation Report: Retailers
dollar amounts in thousands
|Name, Title||Company||Total cash, stock options exercised||Salary 2001||Bonus 2001||Long-term incentive plan||Total cash compensation||Value of stock options exercised||Total cash comp. 3-yr. % chg. 1999-2001|
|1. Incentive payment.
2. Joined the company on Sept. 13, 2000.
3. Girouard deferred all of his bonus for the year.
4. Named president and ceo on Dec. 5, 2000.
5. Employment ended on March 11, 2002.
6. Resigned effective April 8, 2002.
7. Employment ended Jan. 15, 2002.
8. Promoted to president in March 2001.
9. Joined the company on Feb. 1, 2000.
10. Employment ended March 25, 2002.
11. Employment was from May 7 to Nov. 14, 2001.
12. Company announced liquidation in 2002.
13. No longer with the company.
|Robert J. Ulrich, chairman and ceo||Target||$15,148||$1,415||$3,700||$0||$5,115||$10,033||-44.9%|
|Gregg W. Steinhafel, president, Target Stores||Target||14,883||872||814||0||1,686||13,197||-53.5|
|Steven H. Temares, president and coo||Bed Bath & Beyond||13,499||733||0||0||733||12,766||39.6|
|Gerald L. Storch, vice chairman||Target||13,123||752||531||0||1,283||11,840||-43.8|
|R. Lawrence Montgomery, ceo||Kohl's||10,381||919||307||0||1,226||9,155||22.9|
|H. Lee Scott Jr., president and ceo||Wal-Mart||10,328||1,123||1,785 (1)||0||2,908||7,420||44.3|
|David D. Glass, chairman of the board's executive committee||Wal-Mart||8,728||1,087||1,298 (1)||0||2,385||6,343||-39.6|
|Kevin B. Mansell, president||Kohl's||7,107||727||244||0||971||6,136||30.4|
|Leonard Feinstein, co-chairman and co-ceo||Bed Bath & Beyond||6,061||792||0||0||792||5,270||5.6|
|Warren Eisenberg, co-chairman and co-ceo||Bed Bath & Beyond||6,061||792||0||0||792||5,270||5.6|
|Norman Axelrod, chairman and ceo||Linens 'n Things||5,715||771||0||319||1,089||4,626||-16.5|
|Arlene Meier, coo||Kohl's||5,353||600||198||0||798||4,555||54.6|
|Arthur Stark, senior vp, chief merchandising officer||Bed Bath & Beyond||4,819||442||0||0||442||4,377||26.3|
|Gary Vasques, executive vp, marketing||Kohl's||4,191||387||129||0||515||3,676||10.5|
|Thomas M. Coughlin, executive vp and president and ceo of Wal-Mart Stores||Wal-Mart||4,081||886||936 (1)||0||1,822||2,260||5.4|
|Richard Leto, executive vp, gmm & product development||Kohl's||3,949||529||177||0||706||3,244||15.3|
|Alan Questrom (2), chairman and ceo||J.C.Penney||3,205||1,308||1,897||0||3,205||0||—|
|Howard R. Levine, president and ceo||Family Dollar||2,800||510||192||0||701||2,099||4.6|
|John H. Williams Jr., vice chairman and ceo||Stein Mart||2,396||585||0||0||585||1,811||-0.4|
|Alan J. Lacey, chairman and ceo||Sears, Roebuck||2,061||900||673||488||2,061||0||31.4|
|Vanessa J. Castagna, executive vp and coo, JCPenney stores, catalog & Internet||J.C.Penney||2,034||700||1,334||0||2,034||0||56.1|
|Marvin J. Girouard, chairman and ceo||Pier 1 Imports||1,774||850||924 (3)||0||1,774||0||41.9|
|Eugene S. Kahn, chairman and ceo||May Dept. Stores||1,770||1,371||190||209||1,770||0||-28.4|
|Joseph R. Ettore (12), chairman and ceo||Ames||$1,766||$1,103||$663||$0||$1,766||$0||-46.1%|
|James M. Zimmerman, chairman and ceo||Federated Dept. Stores||1,700||1,250||450||0||1,700||0||-58.9|
|Cal Turner, chairman and ceo||Dollar General||1,596||796||800||0||1,596||0||42.1|
|John B. Menzer, executive vp; president, ceo, International div.||Wal-Mart||1,556||717||839 (1)||0||1,556||0||13.4|
|Thomas C. Shull (4), president and ceo||Hanover Direct||1,500||900||600||0||1,500||0||—|
|Charles Conaway (5), former ceo||Kmart||1,475||1,475||0||0||1,475||0||—|
|Terry J. Lundgren, president and chief merchandising officer||Federated Dept. Stores||1,450||1,100||350||0||1,450||0||-46.3|
|Leon Levine, chairman||Family Dollar||1,274||1,019||255||0||1,274||0||-16.4|
|Thomas R. Grimm (13), executive vp and president and ceo of Sam's Club||Wal-Mart||1,245||648||596 (1)||0||1,245||0||40.7|
|Bart Butzer, executive vp, Target Stores||Target||1,220||622||598||0||1,220||0||-19.6|
|Judith Hofer, ceo, May Merchandising Co.||May Dept. Stores||1,151||744||56||84||884||267||—|
|John Belk, chairman and ceo||Belk||1,135||747||388||0||1,135||0||6.7|
|Donald Shaffer, president and coo||Dollar General||1,025||425||600||0||1,025||0||—|
|Jay R. Jacobs, executive vp, merchandising||Pier 1 Imports||1,006||300||218||0||518||488||41.8|
|John L. Dunham, president||May Dept. Stores||1,003||848||75||80||1,003||0||-11.8|
|R. Brad Martin, chairman and ceo||Saks||963||963||0||0||963||0||4.8|
|R. David Alexander Jr., executive vp, coo||Family Dollar||920||296||74||0||370||551||23.0|
|James A. Coggin, president and chief administrative officer||Saks||893||788||105||0||893||0||21.0|
|William P. McNamara, vice chairman||May Dept. Stores||886||705||54||58||817||69||—|
|William G. Pagonis, senior, supply chain management||Sears, Roebuck||857||420||437||0||857||0||21.0|
|H.W. McKay Belk, president, merchandising and marketing||Belk||778||550||228||0||778||0||6.8|
|Thomas Belk, president, store divisions||Belk||778||550||228||0||778||0||6.8|
|William J. Podany (6), chairman, president and ceo||ShopKo Stores||740||740||0||0||740||0||-46.2|
|William Dillard II, ceo||Dillard's||710||710||0||0||710||0||-64.8|
|M. Schwartz (7), former president and coo||Kmart||706||706||0||0||706||0||—|
|Denis T. Lemire (12), president and coo||Ames||678||553||125||0||678||0||-30.2|
|Steven B. Silverstein (8), president||Linens 'n Things||596||440||0||157||596||0||-0.6|
|Mike Dillard, executive vp||Dillard's||540||540||0||0||540||0||-55.4|
|Gwen K. Manto (9), executive vp & chief merchandising officer||Stein Mart||525||475||50||0||525||0||—|
|Drue Corbusier, executive vp||Dillard's||500||500||0||0||500||0||-54.5|
|Cecil Kearse (13), executive vp merchandising||Kmart||496||496||0||0||496||0||-20.4|
|Jay Stein, chairman||Stein Mart||475||475||0||0||475||0||2.9|
|Alan Rosskamm, chairman, president and ceo||Jo-Ann Stores||465||465||0||0||465||0||-31.1|
|Michael D. Fisher, president and coo||Stein Mart||465||405||60||0||465||0||64.2|
|Anthony D'Onofrio (10), former executive vp, global systems capability and chief supply chain officer||Kmart||457||457||0||0||457||0||—|
|Larry G. Kirk, chairman and ceo||Hancock Fabrics||$411||$276||$135||$0||$411||$0||39.3%|
|Tom Hartshorn, executive vp, merchandising||Dollar General||398||226||173||0||398||0||49.6|
|Michael J. Hopkins, president, Pamida||ShopKo Stores||392||392||0||0||392||0||-35.5|
|Dave Bolen, executive vp, merchandising and marketing||Jo-Ann Stores||343||343||0||0||343||0||-8.7|
|Jack W. Busby Jr., president and coo||Hancock Fabrics||324||219||105||0||324||0||41.4|
|Gary W. Ramsey (11), coo||ShopKo Stores||320||270||50||0||320||0||—|
|Steven T. Harig, senior vp, planning replenishment & analysis, distribution & transportation||ShopKo Stores||314||274||40||0||314||0||-25.5|
|James A. Austin, executive vp||Hancock Fabrics||158||108||50||0||158||0||—|
Retail stock options exercised
|As a spur to management to boost the bottom line — and thus the company's stock price — senior executives are rewarded with options to buy the company's stock at a deeply discounted price. The stronger the company's performance, the higher the stock price and the greater the payday for managers, or so the logic goes. And if a company is doing well, and its stock price riding high, these options can easily be the single biggest component of an executive's pay compensation package. A case in point is Target Stores' president Gregg Steinhafel, who exercised stock options valued at $13.2 million last year, making his options worth about 15 times as much as his cash salary of $872,000. In Steinhafel's case, the stock options he exercised amounted to almost 89 percent of his total compensation package of $14.9 million. When it came to options, Steinhafel did even better than his boss, Target ceo Bob Ulrich, whose options exercised were valued at the somewhat lesser amount of $10.0 million.|
|Gregg W. Steinhafel, Target Stores||$13,197,000|
|Steven H. Temares, Bed Bath & Beyond||12,766,000|
|Gerald L. Storch, Bed Bath & Beyond||11,840,000|
|Robert J. Ulrich, Target Corp.||10,033,000|
|R. Lawrence Montgomery, Kohl's||9,155,000|
|William P. McNamara, May Dept. Stores||$69,000|
|Judith Hofer, May Merchandising Co.||267,000|
|Jay R. Jacobs, Pier 1 Imports||488,000|
|R. David Alexander, Family Dollar||551,000|
|John H. Williams Jr., Stein Mart||1,811,000|
Retail cash bonuses
|Robert J. Ulrich, Target||$3,700,000|
|Alan Questrom, J.C. Penney||1,897,000|
|H. Lee Scott Jr., Wal-Mart||1,785,000|
|Vanessa J. Castagna, J.C. Penney||1,334,000|
|David D. Glass, Wal-Mart||1,298,000|
|William P. McNamara, May Dept. Stores||$54,000|
|James A. Austin, Hancock Fabrics||50,000|
|Gary W. Ramsey, ShopKo Stores||50,000|
|Gwen K. Manto, Stein Mart||50,000|
|Steven T. Harig, ShopKo Stores||40,000|
(straight salary, excluding bonus, other cash compensation and stock options)
|Charles Conaway, Kmart||$1,475,000|
|Robert J. Ulrich, Target||1,415,000|
|Eugene S. Kahn, May Dept. Stores||1,371,000|
|Alan Questrom, J.C. Penney||1,308,000|
|James M. Zimmerman, Federated Dept. Stores||1,250,000|
|Steven T. Harig, ShopKo Stores||$274,000|
|Gary W. Ramsey, ShopKo Stores||270,000|
|Tom Hartshorn, Dollar General||226,000|
|Jack W. Busby Jr., Hancock Fabrics||219,000|
|James A. Austin, Hancock Fabrics||108,000|
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