Executives’ wallets remained healthy last year, despite management shifts at some prominent companies. Headlining departures included Paul Charron, former chairman of the board and chief executive officer of Liz Claiborne Inc., and Mark Weber, former CEO of Phillips-Van Heusen Corp. When added together, the top 10 vendors made nearly $89 million in their compensation packages.* An interesting note: The top 10 vendor executives this year are all men—the top-ranked woman, Trudy F. Sullivan, outgoing president of Liz Claiborne Inc., comes in at number 12.
RALPH LAUREN, 67, CHAIRMAN OF THE BOARD AND CEO, POLO RALPH LAUREN CORP.
Total value: $25.9 million
Base salary: $1 million; bonus: $0; stock and options: $8.2 million; other: $16.6 million
Hats off to Lauren, whose company’s strong growth continued last year. Lauren said in a statement in March, “We have made significant progress on all fronts, from opening new luxury stores to initiating steps to expand our accessories business in new categories, such as watches and fine jewelry, to taking direct control of our Japanese business and our Internet business.”
ROGER N. FARAH, 54, PRESIDENT AND CHIEF OPERATING OFFICER, POLO RALPH LAUREN CORP.
Total value: $12.5 million
Base salary: $900,000; Bonus: $0; stock and options: $8.6 million; other: $3 million
Farah is another executive riding the wave of Polo’s growth, which saw profits rise 30.2 percent to $400.9 million and total revenues increase by 14.7 percent to $4.3 billion in the year ended March 31. Farah joined Polo in 2000 and has helped direct its global retail expansion.
PAUL R. CHARRON, 64, FORMER CHAIRMAN OF THE BOARD AND CEO, LIZ CLAIBORNE INC.
Total value: $9.8 million
Base salary: $1.5 million; bonus: $0; stock and options: $7.9 million; other: $428,739
It’s been a wild ride lately at Liz Claiborne, which reported a 65 percent decline in profits for the second quarter in a row. In November, Charron retired as chairman and CEO to become chairman emeritus, and remains as a consultant for the rest of this year. He was replaced by William L. McComb.
ROBERT MARGOLIS, 59, CHAIRMAN AND CEO, CHEROKEE INC.
Total value: $8.8 million
Base salary: $737,000; bonus: $8 million; stock and options: $0; other: $21,000
After cofounding the apparel division of Cherokee in 1981, Margolis became co-chairman of the board, president and CEO in 1990, and chairman of the board in 1993. He then resigned all of his positions in the fall of 1993, but rejoined the company once again as chairman and CEO in 1995.
EMANUEL CHIRICO, 50, CEO, PHILLIPS-VAN HEUSEN CORP.
Total value: $6.7 million
Base salary: $992,436; bonus: $0; stock and options: $1.7 million; other: $4 million
At Phillips-Van Heusen’s shareholder meeting in June, Chirico outlined a retail strategy to open full-price Calvin Klein white label stores in the U.S. over the next 24 months. Chirico replaced Mark Weber as CEO on Feb. 27, 2006, after previously serving as PVH’s president and chief operating officer.
KENNETH P. PUCKER, 44, EXECUTIVE VICE-PRESIDENT AND CHIEF OPERATING OFFICER, TIMBERLAND CO.
Total value: $6 million
Base salary: $536,250; bonus: $0; stock and options: $5.2 million; other: $246,168
For Timberland’s first-quarter performance, total revenues were $336.3 million, down 3.9 percent from the year-ago quarter, as the company experienced declines in sales of boots and kids’ footwear. Pucker joined Timberland in 1992 but left the Stratham, N.H.–based company in March.
JEFFREY B. SWARTZ, 47, PRESIDENT AND CEO, TIMBERLAND CO.
Total value: $5.6 million
Base salary: $818,750; bonus: $0; stock and options: $4.2 million; other: $603,864
Swartz is the third generation of the family to lead Timberland—his grandfather, Nathan, founded the brand in 1952. The name was officially changed in 1978. Swartz has been president and CEO of Timberland since June 1998, and he’s been with the company since 1986.
MARK WEBER, 58, FORMER CEO, PHILLIPS-VAN HEUSEN CORP.
Total value: $5 million
Base salary: $91,667; bonus: $0; stock and options: $0; other: $5 million
Weber succeeded Bruce Klatsky as CEO of Phillips-Van Heusen Corp. in 2005 but left the company in February 2006. He since has become CEO of LVMH Inc. (U.S.) and chairman and CEO of Donna Karan International, a subsidiary of LVMH. Weber received severance payments totaling $2.5 million.
JOSEPH R. GROMEK, 60, PRESIDENT AND CEO, WARNACO GROUP INC.
Total value: $4.3 million
Base salary: $991,667; bonus: $954,400; stock and options: $2 million; other: $296,236 Gromek, who has been president and CEO since 2003, told analysts in May, “We are truly a global company with nearly 50 percent of our revenues generated outside of the U.S. Our acquisition last year of Calvin Klein Jeans Europe and Asia reflected that vision and is driving our performance today.”
KENNETH D. COLE, 53, PRINCIPAL EXECUTIVE OFFICER, KENNETH COLE PRODUCTIONS INC.
Total value: $4.1 million
Base salary: $1 million; bonus: $0; stock and options: $1.5 million; other: $1.6 million
Though the company has lost two key executives this year—chief operating officer Joel Newman and Kenneth Cole New York brand president Joshua Schulman—Cole, the company’s founder, remains in his seat. Cole has served as the company’s chairman and CEO since its inception in 1982.
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