Retail trumps wholesale in 2006 executive pay – WWD
Ralph Lauren, you’ve done it again!
According to trade paper Women’s Wear Daily, the chairman and chief executive of Polo Ralph Lauren Corp. was the highest-paid executive of an American apparel vendor last year — for the third year in a row — with a pay package worth $25.9 million.
While Lauren was the highest-paid vendor, he would only rank fourth among the top-paid executives of U.S. retailers, who together earned $198.7 million last year — more than double the $88.8 million earned by the top 10 vendors.
The retailer list was led by Target Corp. Chief Executive Robert Ulrich, who earned $36.4 million; followed by Wal-Mart Stores Inc. CEO H. Lee Scott Jr. ($29.7 million) and Abercrombie & Fitch Co. CEO Michael Jeffries ($26.2 million).
WWD said the list clearly mirrored the states of the two sides of the industry, where retailers are growing, many vendors, such as Liz Claiborne Inc. and Jones Apparel Group Inc., are struggling with retail consolidation and growing competition from private label brands.
Polo Chief Operating Officer Roger Farah was the No. 2 vendor, the paper said, with a base salary of $900,000 plus stock and option awards worth more than $8.5 million, for a total package worth $12.5 million.
Liz Claiborne’s former CEO, Paul Charron, ranked third, with a total package worth $9.8 million, followed by Cherokee Inc. CEO Robert Margolis, who earned $8.8 million and Phillips-Van Heusen Corp. CEO Emanuel Chirico at No. 5, with a package worth $6.7 million.
Lauren, who runs one of the few apparel vendors which is not struggling, is the only one who would have placed among the top retailers.