BBB Founders Kings Of Compensation
Furniture Today Staff -- Furniture Today, October 4, 2004
If it's tough to make money producing home fashions products, it's a whole lot easier selling them.
Making that point the easy way are two of the savviest and most successful merchants in all of U.S. retailing, Warren Eisenberg and Leonard Feinstein. The two co-founders of Bed Bath & Beyond each pulled down a salary of $53.8 million in 2003, most of it in the form of stock options exercised.
Consistently among the retailing industry's highest-paid executives — and that doesn't include the value of the company stock they still own — Eisenberg and Feinstein each took home a cash salary of $981,000 during 2003, then layered on another $52.8 million in options exercised. That's the single biggest pay day recorded in the five years HTT has tracked retail compensation, and beats by more than $15 million the previous record holder, former Kohl's chairman William Kellogg, who took home $38.7 million in 2000.
By comparison, Norman Axelrod — chairman and CEO of rival Linens 'n Things, who came in 16th in this year's pay ranking — took home a relatively skimpy $4.4 million, a paycheck less than a tenth the size of Eisenberg's or Feinstein's.
Taking second place, as he did the previous year, was R. Lawrence Montgomery, CEO of Kohl's, who pulled down $30.2 million, well more than twice as much as the $12.2 million he earned in 2002.
Target CEO Robert Ulrich, the biggest earner in 2002, dropped to third spot last year with his take of $21.9 million. Still, that was roughly 20 percent more than the $18.2 million he banked in 2002.
Rounding out the top five earners were James Zimmerman, Federated chairman, with $16.4 million; and R. Brad Martin, Saks chairman and CEO, with $10.9 million.
Pointing out the disparity between retailers and manufacturers — the haves and have-notes of home fashions — Eisenberg and Feinstein of Bed Bath & Beyond, each with his paycheck of $53.8 million, took home almost 19 times as much last year as the highest paid vendor, Larry Liebenow at Quaker Fabric with just $2.9 million.
Looked at another way, Eisenberg and Feinstein each took home three times as much as all 25 manufacturing execs combined, who together pulled in just $17.3 million between them.
Executive Compensation Report RETAILERS
Dollar amounts in thousands
|Name, title||Company||Total cash, stock options exercised||Salary 2003||Bonus 2003||Long-term incentive plan||Total cash compensation||Value of stock options exercised||Total cash comp. 3-yr. % change 2001-2003|
|(1) Chairman through Jan. 14, 2004.
(2) President and ceo from Feb. 26, 2003, chairman from Jan. 15, 2004.
(3) Resigned on May 5, 2004.
(4) Elected chairman in January 2003.
(5) Elected president and coo in January, 2003.
(6) Joined company on Sept. 22, 2003.
(7) Elected to take stock in lieu of salary.
|Warren Eisenberg, Co-chairman||Bed Bath & Beyond||$53,805||$981||$0||$0||$981||$52,824||23.9|
|Leonard Feinstein, Co-chairman||Bed Bath & Beyond||53,805||981||0||0||981||52,824||23.9|
|R. Lawrence Montgomery, CEO||Kohl's||30,224||1,015||0||0||1,015||29,209||-17.2|
|Robert J. Ulrich, Chairman and CEO||Target||21,853||1,572||3,300||0||4,872||16,982||-4.8|
|James M. Zimmerman, (1) Chairman||Federated Dept. Stores||16,386||1,250||2,769||0||4,019||12,367||136.4|
|R. Brad Martin, Chairman and CEO||Saks||10,859||1,050||1,078||0||2,128||8,732||121.0|
|W. Howard Lester, Chairman||Williams-Sonoma||9,244||975||731||0||1,706||7,538||31.3|
|H. Lee Scott Jr., President and CEO||Wal-Mart||8,315||1,192||4,200||0||5,392||2,923||85.4|
|Robert L. Nardelli, Chairman, President and CEO||Home Depot||6,500||2,000||4,500||0||6,500||0||-0.4|
|Kevin B. Mansell, President||Kohl's||5,984||873||0||0||873||5,110||-10.1|
|Dale C. Pond, Senior Executive Vice President, Merchandising||Lowe's||5,682||550||1,100||0||1,650||4,032||39.0|
|Larry D. Stone, Senior Vice President, Operations||Lowe's||5,167||702||1,404||0||2,106||3,061||33.0|
|Richard Leto, Executive Vice President, DMM||Kohl's||5,110||585||0||0||585||4,525||-17.1|
|Gregg W. Steinhafel, President of Target Stores||Target||4,706||922||692||0||1,614||3,092||-4.3|
|Kathleen Mason, President and CEO||Tuesday Morning||4,449||550||225||0||775||3,674||41.4|
|Norman Axelrod, Chairman and CEO||Linens 'n Things||4,418||813||389||0||1,203||3,215||10.4|
|Edmond J. English, President and CEO||TJX||4,123||1,158||848||477||2,483||1,640||56.5|
|Alan J. Lacey, Chairman and CEO||Sears, Roebuck||4,076||1,016||898||0||1,914||2,163||-7.0|
|Robert L. Tillman, Chairman and CEO||Lowe's||4,000||1,000||3,000||0||4,000||0||40.3|
|Terry J. Lundgren (2), Chairman, President and CEO||Federated Dept. Stores||3,788||1,196||2,494||0||3,689||98||154.4|
|Allen Questrom, Chairman and CEO||J.C.Penney||3,375||1,350||2,025||0||3,375||0||5.3|
|Thomas C. Shull (3), President and CEO||Hanover Direct||3,166||916||2,250||0||3,166||0||111.0|
|Howard R. Levine (4), Chairman and CEO||Family Dollar||2,964||700||483||0||1,183||1,781||68.7|
|Stephen I. Sadove, Vice Chairman||Saks||2,809||980||739||0||1,719||1,089||2457.7|
|Peter A. Maich, Executive Vice President, Group President||TJX||2,777||722||317||235||1,275||1,502||16.6|
|John B. Menzer, Executive Vice President , President and CEO International Division&||Wal-Mart||$2,673||$817||$1,856||$0||$2,673||$0||71.7|
|James A. Coggin, President and Chief Administrative Officer||Saks||2,534||800||431||0||1,231||1,303||37.9|
|David A. Perdue, Chairman and CEO||Dollar General||2,457||747||1,710||0||2,457||0||—|
|Jeffrey H. Brotman, Chairman of the Board||Costco||2,381||350||0||0||350||2,031||0.0|
|Eugene S. Kahn , Chairman and CEO||May Dept. Stores||2,307||1,500||675||132||2,307||0||30.4|
|Robert A. Niblock, President||Lowe's||2,276||651||1,625||0||2,276||0||—|
|Carol Meyrowitz , Senior Vice President, President of the Marmaxx Group||TJX||2,228||843||455||278||1,577||651||24.6|
|Brian N. Priddy, Executive Vice President, Operations||The Bombay Company||2,221||315||151||0||466||1,755||69.5|
|Arnold S. Barron , Executive Vice President, Group President||TJX||2,183||632||279||199||1,110||1,073||17.1|
|Julian Day, President and CEO||Kmart||2,000||1,000||1,000||0||2,000||0||—|
|James D. Sinegal, President and CEO||Costco||1,854||350||0||0||350||1,504||0.0|
|John M Belk, Chairman and CEO||Belk||1,821||803||776||242||1,821||0||60.5|
|Marvin J. Girouard, Chairman and CEO||Pier 1 Imports||1,726||950||0||0||950||776||-46.5|
|Edward Mueller, CEO||Williams-Sonoma||1,706||975||731||0||1,706||0||—|
|G. Michael Anderson, Former Executive Vice President, Buying||Tuesday Morning||1,681||289||25||0||314||1,367||10.4|
|V.J. Castagna, Chairman and CEO, JCPenney Stores, Catalog & Internet||J.C.Penney||1,614||737||878||0||1,614||0||-20.6|
|George L. Jones, President and CEO of Saks Department Store Group||Saks||1,600||900||700||0||1,600||0||-7.4|
|John C. Rossler, President and CEO||Retail Ventures||1,523||718||0||805||1,523||0||68.9|
|Michael T. Duke, DVP and President and CEO Wal-Mart Stores Division||Wal-Mart||1,455||603||852||0||1,455||0||48.7|
|Laura Alber, President, Pottery Barn Brands||Williams-Sonoma||1,405||514||259||0||773||632||32.7|
|Stonie R. O'Briant, Executive Vice President-Merchandising, Marketing and Strategic Planning||Dollar General||1,354||360||362||0||722||632||55.3|
|John L. Dunham, President||May Dept. Stores||1,269||950||267||52||1,269||0||26.6|
|Dennis R. Zook, Executive Vice President, Chief Operating Officer, Southwest Division and Mexico Division||Costco||1,190||435||33||0||468||722||9.2|
|Michael T. Wedge, President and CEO||BJ's||1,185||634||394||157||1,185||0||73.0|
|R. David Alexander, Jr. (5), President and Chief Operating Officer||Family Dollar||1,172||369||169||0||538||634||45.5|
|Thomas M.Belk, Jr., President, Store Divisions and Real Estate||Belk||1,169||591||457||121||1,169||0||50.1|
|H.W. McKay Belk, President, Merchandising, Marketing and Merchandise Planning||Belk||1,169||591||457||121||1,169||0||50.1|
|Bart Butzer, Executive Vice President of Target Stores||Target||1,157||663||494||0||1,157||0||-5.2|
|Michael J. Potter, Chairman, CEO and President||Big Lots||1,155||742||413||0||1,155||0||65.9|
|John H. Costello, Executive Vice President-Merchandising and Marketing||Home Depot||1,154||604||550||0||1,154||0||—|
|Francis S. Blake, Executive Vice President-Business Development & Corporate Operations||Home Depot||1,151||601||550||0||1,151||0||—|
|William P. McNamara, Vice Chairman||May Dept. Stores||1,018||801||182||34||1,018||0||24.6|
|Sam K. Duncan, President and CEO||ShopKo Stores||1,000||725||275||0||1,000||0||—|
|Mark S. Cosby , President, Full-line Stores||Sears, Roebuck||989||539||451||0||989||0||—|
|Alan Rosskamm, Chairman, President and CEO||Jo-Ann Stores||938||683||0||0||683||255||46.9|
|Michael J. Marchetti, Executive Vice President and Chief Operating Officer||Tuesday Morning||936||315||75||0||390||546||94.2|
|Steven H. Temares, President and CEO||Bed Bath & Beyond||931||931||0||0||931||0||27.0|
|Donald S. Shaffer, Former Acting CEO||Dollar General||825||200||625||0||825||0||-19.5|
|Janine M. Bousquette, Executive Vice President and Chief Customer & Marketing Officer||Sears, Roebuck||$801||$508||$293||$0||$801||$0||—|
|Franz E. Lazarus, Executive Vice President, Chief Operating Officer-International Operations, Manufacturing & Ancillary Businesses||Costco||734||435||33||0||468||267||7.4|
|Arlene Meier, Chief Operating Officer||Kohl's||716||716||0||0||716||0||-10.2|
|Edwin J. Kozlowski, Executive Vice President and Chief Operating Officer||Retail Ventures||712||512||0||200||712||0||58.7|
|William Dillard II, CEO||Dillard's||710||710||0||0||710||0||0.0|
|Patrick J. Connolly, Executive Vice President, Chief Marketing Officer||Williams-Sonoma||707||514||193||0||707||0||9.5|
|Patrick Cowell, President, William-Sonoma Brands||Williams-Sonoma||707||514||193||0||707||0||—|
|Jack W. Busby Jr., President and Chief Operating Officer||Hancock Fabrics||662||250||66||0||316||346||-2.5|
|Gwen K. Manto, Vice Chairman & Chief Merchandising Officer||Stein Mart||659||401||0||0||401||259||-23.7|
|Michael D. Contino, Executive Vice President and CEO||Hanover Direct||657||394||264||0||657||0||-1.5|
|Stephen Farley, Executive Vice President||The Bombay Company||644||307||144||0||450||194||—|
|Alex Dillard, President||Dillard's||620||620||0||0||620||0||0.0|
|Gary G. Friedman, CEO & President||Restoration Hardware||565||415||150||0||565||0||81.0|
|Michael J. Hopkins, President, Pamida||ShopKo Stores||564||406||73||0||479||85||22.0|
|Matthew Fiorilli , Senior Vice President, Stores||Bed Bath & Beyond||548||548||0||0||548||0||26.9|
|Arthur Stark, Senior Vice President, Chief Merchandising Officer||Bed Bath & Beyond||548||548||0||0||548||0||24.0|
|F. David Coder, Senior Vice President — Store Operations||Linens 'n Things||544||279||100||0||379||166||75.6|
|Michael D. Fisher , President and CEO||Stein Mart||544||544||0||0||544||0||17.0|
|Mike Dillard, Executive Vice President||Dillard's||540||540||0||0||540||0||0.0|
|John C. Beuttell, Vice President-International Strategies||The Bombay Company||527||230||74||0||304||223||17.6|
|Lawrence V. Jackson (6), President and CEO||Dollar General||516||216||300||0||516||0||—|
|Edward F. Giles, Executive Vice President, Club Operations||BJ's||504||287||107||110||504||0||—|
|Drue Corbusier, Executive Vice President||Dillard's||500||500||0||0||500||0||0.0|
|Leon Levine, Former Chairman of the Board||Family Dollar||496||496||0||0||496||0||-61.1|
|Audrey Schlaepfer, Executive Vice President, Chief Merchandising Officer||Linens 'n Things||494||400||94||0||494||0||322.8|
|Bruce E. Barkus, Senior Vice President, store operations||Family Dollar||485||264||83||0||347||138||23.8|
|Donald A. Mierzwa, Executive Vice President, Store Operations||Big Lots||480||350||116||0||466||15||37.2|
|Herbert Zarkin, Chairman||BJ's||468||468||0||0||468||0||33.7|
|Kent Larsson, Senior Vice President, Marketing||Big Lots||466||350||116||0||466||0||37.2|
|James D. Carreker, CEO||The Bombay Company||425||0 (7)||425||0||425||0||—|
|Larry G. Kirk, Chairman and CEO||Hancock Fabrics||399||311||89||0||399||0||-3.0|
|Dave Bolen, Executive Vice President, Merchandising, Marketing and Logistics||Jo-Ann Stores||398||398||0||0||398||0||16.2|
|Stephen J. Gordon, Chairman||Restoration Hardware||350||350||0||0||350||0||4.0|
|Jay R. Jacobs, Executive Vice President, Merchandising||Pier 1 Imports||345||345||0||0||345||0||-33.3|
|Mike Edwards , Executive Vice President, Operations||Jo-Ann Stores||342||342||0||0||342||0||1.0|
|Robert A. Arlauskas, Executive Vice President, Stores||Pier 1 Imports||300||300||0||0||300||0||-22.7|
|Jay Stein, Chairman||Stein Mart||300||300||0||0||300||0||-36.8|
|Jay L. Schottenstein, Chairman||Retail Ventures||250||250||0||0||250||0||0.0|
|Michael D. Ray, Senior Vice President, Director of Stores||Stein Mart||232||210||22||0||232||0||37.5|
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