Gap chief executive Arthur Peck received a 33 per cent increase in compensation last year, even as the retailer’s stock floundered.
Mr Peck received about $20.8m in 2018, including a 9.3 per cent pay raise to $1.5m and stock awards of $15.1m — more than double the previous year’s amount. His compensation totalled $15.6m in 2018.
In a filing with the Securities and Exchange Commission, Gap also said chief financial officer Teri List-Stoll’s total compensation in 2019 more than doubled to $7.5m, while Mark Breitbard, president and chief executive of Banana Republic, saw his compensation slip to $4.8m from $7.3m.
Shares in Gap lost nearly a quarter of their value last year as a decline in sales at the group’s namesake brick-and-mortar chain worried investors. The San Francisco-based company said comparable sales at Gap locations dropped 5 per cent year-over-year in fiscal 2018. Comparable sales across the company were flat, with Banana Republic and Old Navy showing gains. Total revenue and earnings also grew, aided by higher online sales.
Gap announced in February it would split the company into two, separating the better-performing Old Navy from its other brands. The transaction is expected to be completed in 2020. Shares rallied 16 per cent a day after the news but are still flat on the year.
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