All three co-presidents — Blake, Pete and Erik Nordstrom — saw their total compensation packages reach more than $5.8 million last year.
The three co-presidents of Nordstrom saw their compensation more than double last year, during a time when the company laid off hundreds of employees.
All three co-presidents — Blake, Pete and Erik Nordstrom — each saw their total compensation packages reach more than $5.8 million last year, according to the company’s proxy statement filed Wednesday.
That was more than double the value of their compensation packages in 2015, which were about $2.6 million each. Their compensation packages in 2014 ranged from $3.79 million to $4.65 million.
For the 2016 fiscal year, ended in Jan. 28, 2017, each of the three Nordstrom brothers received salaries of $751,152. The bulk of their compensation came in the form of equity, with stock awards valued at $1.63 million and option awards worth $1.44 million.
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They also each received performance-based cash bonuses of $1.21 million.
In early 2016, according to the proxy statement, the Nordstrom board’s compensation committee increased the co-presidents’ long-term incentive grant value, noting that “when compared to the three highest paid officers among our peers, their aggregate compensation is well below the peer median.”
The compensation committee also granted a “special equity award” to the Nordstrom brothers and Ken Worzel, who was promoted to president of Nordstrom.com last fall from his previous position as executive vice president of strategy and development.
This equity award was not given for meeting performance goals.
Rather, “in mid-2016, recognizing the significant challenges faced by our company and many of our full-line retail peers,” the committee issued that equity award “for selected executives to strengthen alignment between executive and shareholder interests during this transformative period in the retail industry.”
The value of the grant was 75 percent of base salary for the Nordstrom brothers, and 200 percent of base salary for Worzel.
Worzel and Mike Koppel, an executive vice president and Nordstrom’s chief financial officer, also saw the value of their compensation packages increase last year.
Koppel earned total compensation of $3.76 million, up from $2.1 million in 2015.
Worzel’s compensation package was valued at $4.18 million last year, up from $1.42 million in 2015.
The company suffered financial setbacks last year, as sales at its full-line stores fell even as its online sales ramped up.
Nordstrom shares, meanwhile, were down about 10 percent during fiscal 2016.
Nordstrom’s top executives could make a bit less this year, however.
The compensation committee said it considered performance results, including the impairment charge related to a recent acquisition — likely the $197 million write-down for its Trunk Club acquisition — in its decision to decrease the long-term incentives’ annual grant value slightly for the Nordstrom brothers and for Worzel in 2017.