John Idol, chairman and chief executive officer of Capri Holding, saw his compensation fall 2.8 percent to $14.3 million for the fiscal year ended April 1, according to the company’s proxy statement filed with the Securities and Exchange Commission on Thursday.
The CEO’s take included a salary of $1.35 million and incentive pay of $4.3 million.
That incentive pay equaled 320 percent of Idol’s base salary and was determined by a formula that takes into account the company’s financial performance — seen in adjusted free, adjusted gross margins and adjusted selling, general and administrative expenses — as well as environmental, social and governance targets.
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But, as is typical across the C-suites of major fashion players, most of Idol’s compensation came from stock awards, which were valued at $8.5 million — although the true value of the awards will depend on the company’s stock price. The idea is to link CEO pay to the portfolios of shareholders.
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In a letter to shareholders that was included with the filing, Idol said that while financial results for the year did not meet the company’s original expectations “many aspects of our business performed well.”
“We achieved record revenue of $1.11 billion at Versace, increasing 14 percent compared to last year, demonstrating the momentum of the brand and the success of our strategic growth initiatives,” Idol said, referring to the constant currency growth rate on a 52-week basis. “Jimmy Choo also achieved record revenue of $633 million, increasing 13 percent.…At Michael Kors, revenue of approximately $3.9 billion increased 4 percent, driven by growth in our own retail channel.”
Capri has been focused on growing its accessories business across all of its brands while also pushing footwear and racing out to new customers, including the 12.6 million names added to its database during the year.
“We believe that with Versace, Jimmy Choo and Michael Kors we have three incredibly powerful brands to drive our future growth, and we remain confident in our ability to achieve our long-term goals over time due to the resilience of the luxury industry, the strength of our three powerful iconic brands and the talented group of employees executing our strategic initiatives,” Idol said.