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Target, Kohl's paid execs biggest bucks

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.

Top Five
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
Bottom Five
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

Top Five
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
Bottom Five
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


Retail Salaries
(straight salary, excluding bonus, other cash compensation and stock options)

Top Five
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
Bottom Five
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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