STORES Magazine - January 2008 - (Page C9)

heralded “green” efforts of While there remain any global company and disparities, pay continued to move forward and performance continue to be despite endless media bashmore closely aligned ing. in retail than in Michael Jeffries of Aberother sectors crombie & Fitch, Ralph Lauren of Polo Ralph Lauren and CVS Caremark’s Thomas Ryan round out the top five highest-paid CEOs in the study. Jeffries spent the better part of 2007 beating profit predictions and won kudos for the opening of a flagship Abercrombie & Fitch store on London’s famed Saville Row in March. This year, the much anticipated “Concept 5” will be unveiled. Given Jeffries’ track record, industry watchers expect to be wowed. The concept of pay for performance has been a hotEPS Pacesetters button issue for decades, CEO COMPANY COMPENSATION NET INCOME TSR% and the retail arena came GROWTH % GROWTH % under particular scrutiny Jeffrey Noddle SUPERVALU 100.79% 119.20% 19.94% last year when former Home William Dillard Dillard’s 171.78 102.14 35.82 Depot CEO Robert NardelSteven Burd Safeway 98.19 55.16 46.91 li became the poster child for pay/performance imbalJames Skinner McDonald’s 270.56 36.20 34.43 ance. While disparities reLew Frankfort Coach 139.06 34.27 58.49 main, pay and performance Just a year ago, SUPERVALU made the list of EPS laggards as it struggled to digest the continue to be more closely 1,100 units it acquired from Albertsons — a move that catapulted it from ninth to third place aligned in retail than in other among U.S. supermarket companies. CEO Jeff Noddle’s plan to build a “very locally tailored sectors. chain” is obviously bearing fruit, as are the company’s activities as a major food wholesaler. Lauren received a 25.9 perFamily-controlled Dillard’s also has bounced back. Sandwiched between Macy’s and the cent raise as the company’s discount chains, Dillard’s has successfully defended its niche, selling name-brand and private-label merchandise to middle- and upper-middle-income women in the Sunbelt and cenearnings rose 30 percent. tral United States. Ryan took a 7 percent cut Steve Burd of Safeway, Jim Skinner of McDonald’s and Lew Frankfort of Coach also (making him one of only earned their paychecks last year, successfully growing well-established brands in the face three executives in the study of relentless competition. to suffer this fate) even as Jockeying for Position CVS earnings rose nearly 12 percent. Lowe’s Bob Niblock CEO COMPANY COMPENSATION NET INCOME TSR% GROWTH % GROWTH % also took a cut (16 percent) as earnings rose 12.3 perRobert Keegan Goodyear 225.59% -244.74% 20.77% cent. Jeffrey Bezos Amazon.com 8.46 -47.08 -16.31 SUPERVALU’s Jeff NodAndrea Jung Avon Products 791.44 -43.65 18.18 dle doubled his compensaClarence Otis Darden Restaurants 1.76 -40.45 30.10 tion as company earnings Mike Jackson AutoNation 69.13 -36.17 -1.89 rose 119 percent. The SUThough it might appear, at first glance, that Goodyear’s Bob Keegan has hit a patch of PERVALU case is interestblack ice, the company actually has fairly good traction. In 2007, Goodyear absorbed the ing. In last year’s study, the brunt of a United Steelworkers strike which, coupled with a declining domestic tire market, company had suffered a loss heavily punished the bottom line. The blimpmeister had a very good third quarter and is and was identified as struglooking forward to 2008. gling. The change in its forJeff Bezos of Amazon, meanwhile, is pursuing the same vision he’s been pursuing for tunes seems to indicate two years — that of robust profitability as a giant, broad-spectrum online retailer. The question, things: that a plan can take still, is whether the market is willing to wait for him to get there. more than a year to execute, Charts: Reuters Fundamentals WWW.STORES.ORG http://Amazon.com http://WWW.STORES.ORG

Table of Contents Feed for the Digital Edition of STORES Magazine - January 2008

STORES Magazine - January 2008 Contents Executive Editor's Page President's Page Build a 'Bot Sneak Peek at Fashion Trends What Shoppers Think 10 Things You May Have Missed Numbers Worth Counting Full Price/Markdown Retail People Cover Story: Fishing for Talent Retail CEO Compensation Research Concept2Watch E-Commerce Payment Solutions Online Merchandising POS LPInformation LP Vantage Point Newsbeat Industry Watch Cover Story: Making LP PCI-Compliant Mall Security Video Surveillance Industry Perspective Forum RFID Business Intelligence Data Management Logistics Turning Green into Gold Love of – and for – the Outdoors Loeb Retail Letter ARTS Update Point of View NRF News Retail Industry Calendar Last Laugh

STORES Magazine - January 2008

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