Nordstrom President Blake Nordstrom took a 36 percent cut in total compensation in 2007, a year in which the luxury retailer's financial...
SEATTLE — Nordstrom President Blake Nordstrom took a 36 percent cut in total compensation in 2007, a year in which the luxury retailer’s financial results showed that even wealthy shoppers were feeling the effects of economic uncertainty.
Nordstrom, 47, received compensation for the year valued at $2.3 million dollars, according to a Securities and Exchange Commission filing earlier this month, compared with $3.6 million in 2006.
The executive’s salary was cut a slim 2 percent to $698,056.
More significant decreases were made to compensation tied to the retailer’s fiscal performance. Nordstrom’s non-equity incentive plan compensation, $377,860, was 77 percent lower than a year ago, and represented only 54 percent of his total possible bonus.
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The retailer’s profit edged up 5.5 percent in 2007, compared with growth above 20 percent the year before. In the all-important holiday shopping quarter, Nordstrom’s profit fell 8.6 percent as even well-to-do shoppers bought fewer cashmere sweaters, silk scarves and other high-end items.
Nordstrom did receive stock and options worth $1.18 million, according to the filing, 5.5 percent more than in 2006.
Blake Nordstrom received nearly $5,300 in insurance premiums and $9,000 in matches to his 401(K) retirement plan, comparable to the previous year, but was not given any profit-sharing dollars. In 2006, he received $6,600 in profit sharing.
The value of discounts the president took on Nordstrom merchandise sank 61 percent to $35,802.
The Associated Press calculations of total pay include executives salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The calculations don’t include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the Securities and Exchange Commission
Nordstrom’s annual shareholder meeting is scheduled for May 20 in Seattle.