Calvin McDonald, chief govt officer of Lululemon Athletica Inc., noticed his compensation fall 6.2 % to $10.6 million final 12 months.
Over half of his pay — $6 million — got here within the type of inventory or choice awards that tie his final compensation to the worth of the corporate’s inventory. Given share worth fluctuations and vesting schedules, he would possibly by no means see a payout from the inventory and choices.
However he did get a wage of $1.2 million, incentive pay of $1.9 million and different compensation totaling $1.5 million, most of which got here within the type of $1.3 million in relocation prices tied to his August 2018 appointment as CEO. His pay was detailed within the firm’s annual proxy assertion, filed with the Securities and Alternate Fee forward of its annual assembly on June 9.
Public firms have been detailing pay packages for prime executives in latest weeks and whereas McDonald is among the many highest-paid folks in trend and retail, he’s not on the prime of the record. Up to now within the tally this 12 months, that place goes to Walmart Inc. CEO Doug McMillon, whose compensation together with inventory final 12 months totaled $22.6 million.
At Lululemon, McDonald has overseen a exceptional run. The corporate has a market capitalization of $46 billion — making it price greater than an extended record of firms tied to trend, together with mall large Simon Property Group ($40.2 billion), VF Corp. ($34.9 billion), Ulta Magnificence Inc. ($18.2 billion), Farfetch ($18.1 billion) and Tapestry Inc. ($13.2 billion).
However as a lot as Lululemon’s valuation outstrips so many, it has huge rivals, together with Nike Inc., with a market capitalization of $209 billion. (Walmart ranks as having the biggest retail market cap — over $389 billion).
Regardless of the pandemic, Lululemon proved itself to be an organization on the transfer final 12 months.
The agency’s revenues rose 11 % to $4.4 billion as the corporate opened its a centesimal retailer within the Asia-Pacific area and, in June, purchased the in-home health firm Mirror.
To maintain up its momentum, the corporate is targeted on a strategic plan that’s heavy on product innovation, “omni-guest expertise” and market growth.
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