VF Corp. chief executive officer Eric Wiseman saw his 2014 compensation increase by more than half as the cash component of his pay grew by nearly a third.
Wiseman’s total compensation last year was $17.8 million, 51.3 percent above the $11.8 million reported for 2013, according to the definitive proxy filed with the Securities and Exchange Commission Thursday.
The cash segment of his pay package grew more modestly, rising 32.4 percent, to $4.7 million from $3.6 million, as his base salary was up 9.1 percent, to $1.3 million from $1.25 million, and his cash bonus — or nonequity incentive plan compensation, in the language of the proxy — grew 47.7 percent to $3.4 million from $2.3 million in the prior year.
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The combination of stock and option awards was $8.2 million, 6.1 percent above the $7.8 million the chairman, president and ceo of VF was granted in 2013. Awards are reported at fair market value on their grant date although, because of vesting schedules and fluctuations in stock prices, they aren’t necessarily realized by the recipient.
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The bulk of the more than $6 million gain in Wiseman’s compensation came from the principally actuarial calculation of “change in pension value and nonqualified compensation earnings,” which leaped to $4.8 million from about $372,000 in 2013. These reflect swings in interest rates and estimate life expectancy.
Robert Shearer, who retires this month after 17 years as VF’s chief financial officer, saw his compensation nearly double in his final full year in the post, growing 88.8 percent to $5.4 million from $2.9 million in 2013. But that amount included $2.1 million in the pension and deferred compensation column, versus zero in 2013. Including stock and option awards but not the “change in value” amount, his compensation rose 16.8 percent to $3.3 million.
VF, aiming for revenues of $17.3 billion and earnings of $4.50 a share by 2017, last year saw revenues rise 7.6 percent to $12.28 billion, making it the largest U.S.-based manufacturer of apparel and accessories. Net income, depressed by a $396 million impairment charge for brands in its contemporary coalition, fell 13.4 percent to $1.05 billion, while adjusted EPS climbed to $3.08.
VF’s portfolio of brands includes five that generate more than $1 billion in sales a year — The North Face, Vans, Timberland, Wrangler and Lee.