Recently filed proxy statements show that top executives at sunglasses maker Oakley Inc. were handed raises and hefty bonuses last year, but their counterparts at Pacific Sunwear of California Inc. did not fare as well.
At Oakley, COO Link Newcomb took home the biggest bonus and Tommy Rios, vice president of Oakley Worldwide, received the largest pay increase.
The pay hikes and bonuses were granted in a year that saw Oakley’s stock price rise from low of 5.3 in January to a 52-week high of 22.5 in November. Sales grew 41% to $363.5 million in 2000 and profits were up 83% to $51.1 million. Also, last week the company reported its first quarter profits were up 67% to $9.1 million, sales were up 49% to $93.8 million.
In response to that performance, Newcomb’s salary rose 13.7% to $398,077 and his bonus was $343,750, compared with a $50,000 bonus in 1999. CFO Thomas George’s salary was up 17.2% to $228,654, and his bonus was $110,000 versus $32,000 in 1999. George also receives an $18,000 annual housing allowance.
Oakley President Colin Baden’s salary was up 12.6% to $195,192 with a $103,125 bonus, up from $30,000 in 1999. Rios’ salary grew 181% to $146,250 last year and he received a $68,750 bonus, compared with a $29,000 1999 bonus. Rios also received $75,920 in sales commissions, down from $134,115 in 1999.
Oakley CEO, chairman and founder Jim Jannard, who owns a 61.7% stake in the company worth roughly $805 million at recent prices, has not taken a salary or bonus for years and has no written contract with the company.
Meanwhile, at Pacific Sunwear of California Inc., CEO and chairman Greg Weaver’s salary was $709,600 last year compared with $609,600 in 1999, but in January the company increased his salary by less than 4%, to $735,000, a raise that was held down by the company’s failure to meet performance goals, according to its proxy statement.
The company also said it will award no bonuses this year, but last year top executives were handed some hefty ones: $840,000 for Weaver; $375,200 for Timothy Harmon, president and chief merchandising officer; $202,031 for COO Mark Hoffman; $150,000 for Michael J. Scandiffio, executive vice president of merchandising; and $169,000 for Carl W. Womack, senior vice president, CFO and secretary.
Weaver also received $1.9 million worth of restricted stock awards last year, up from the $1.2 million in restricted stock awards he received in 1999.
The economic slowdown has created a tough retail market for Pacific Sunwear. Although last year Pacific Sunwear reported a 3.4% increase in same-store sales, same-store sales were down 4.1% in March and 1.1% in February this year over last.
However, the company has been adding new stores aggressively, and for the most recent quarter, overall sales were up 38.4% to $181.2 million and profits rose 20% to $14 million.
