For example, in 2008 Home Depot saw its revenue decreased 7.8%, its same store sales fell 8.7%, and it made 23.7% less profit. Yet CEO Frank Blake received a 29% increase in compensation. This was even after he (wisely) refused to accept an additional $1.2 million bonus to which he was entitled under the terms of his contract. This is a contract that doesn't seem to have been structured with the overall profitability of the company in mind.
As CEO compensation has grown to exorbitant levels in the U.S. over the past decade, it was assumed that the pay for top retail industry CEOs would also decrease correspondingly when the company experienced declines in its sales results. They key recession years of 2007 and 2008 proved otherwise, as very few CEOs in the retail industry or any other industry have seen compensation declines that match the dramatic declines that their companies have experienced.
Below is a list of retail industry CEOs who had expanding compensation packages in the midst of recession, as reported by Forbes Magazine in its annual CEO compensation reports.
The retail CEO compensation figures below include salary, bonuses, vested stock grants, stock gains, and the value of exercised stock options. What these compensation figures do not include are stock options unless they have been exercised in the year indicated, unless otherwise indicated.
- See also retail CEO recession pay cuts
- See also a 5-year comparison of retail CEO compensation
Michael Jeffries
$15.9 million - 2008 1
$8.9 million - 2007
AutoZone
William C Rhodes III
$6.53 million - 2008
$1.4 milion - 2007
Bed Bath & Beyond
Steven Temares
$2.39 million - 2008
$1.7 million - 2007
Coach
Lew Frankfort
$11.3 million - 2008
$5.6 million - 2007
CVS / Caremark
Thomas Ryan
$36.7 million - 2008
$19.6 million - 2007
GameStop
Daniel DeMatteo
$25.2 million - 2008
$3.1 million - 2007
Gap
Glenn Murphy
$5.35 million - 2008
$4.0 million - 2007
General Motors
Kendall Powell
$2.3 million - 2008
Richard Wagoner
$2.1 million - 2007
Eric Schmidt
$510,000 - 2008
$480,000 - 2007
Home Depot
Frank Blake
$3.1 million - 2008
$2.4 million - 2007
Lowe's
Robert Niblock
$9.7 million - 2008
$4.6 million - 2007
Rite Aid
Mary Sammons
$4.2 million - 2008
$3.1 million - 2007
Supervalu
Jeffrey Noddle
$11.5 million - 2008
$8.42 million - 2007
TJX Companies
Carol Meyrowitz
$6.7 million - 2008
$5.7 million - 2007
Walt Disney
Robert Iger
$21.3 million - 2008
$20.7 million - 2007
- See also retail CEO recession pay cuts
- See also a 5-year comparison of retail CEO compensation
