It pays to be a retailer.
As the proxy statements were filed and WWD compiled the pay packages of the highest paid retail and vendor executives in the industry, the tallies showed that retail executives garnered more money then their vendor counterparts. Still, WWD reported that the highest paid vendors received some hefty compensation.
On the vendor side, Ralph Lauren is tops once again, chairman and chief executive officer of Polo Ralph Lauren Corp. topped the list with a $25.9 million pay package. WWD reported that Polo dominated the top 10 list of vendor executive compensation, with Roger N. Farah, president and chief operating officer, grabbing the number-two position with a total compensation package of $12.5 million.
The total pay of the top 10 executives was worth $88.8 million, which is considerably less that the retail executives total pay of $198.7 million. Topping the retail list was Robert Ulrich, chairman and ceo of Target Corp., with a compensation package of $36.4 million.
Lauren. H. Lee Scott Jr., president and ceo of Wal-Mart Stores Inc., came in next with a total pay package of $29.7 million in 2006. Michael S. Jeffries, chairman and ceo of Abercrombie & Fitch Co., took the third spot with 2006 compensation of $26.2 million.
This was the first year public companies were required to list executive pay in “plain language.” Year-over-year comparisons could not be made since the option grants listed included prior years.
It was the hefty stock and option awards that boosted the pay packages of the top executives this year.
WWD reported that with “fewer qualified candidates vying for top executive positions, companies have been forced to raise compensation in order to remain competitive,” according to Elaine Hughes, president of executive search firm E.A. Hughes & Co.
On the mergers and acquisitions side of the apparel and retail industry, leveraged buyout activity seems to be slowing, WWD reported late last month.
Analysts, bankers and consultants said the credit market has pretty much put a lot of deals on hold. A slowdown in consumer spending also appears to have the dealmakers worried.
But that doesn’t mean acquisitions will not occur, WWD reported. In fact, there’s been several deals done over the past few weeks, including VF Corp.’s buyout of Seven For All Mankind and Deb Shops being taken private by Lee Equity Partners LLC.
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Highest-Paid Vendors: Ralph Lauren Is No. 1, Earning $25.9M in ’06.