American Eagle Executive Pay Slips Without Incentives
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Executive pay slipped at American Eagle Outfitters Inc. last year as top leaders received no incentive pay, but Jay Schottenstein, executive chairman and chief executive officer, said the company successfully pivoted in a tough environment and has plenty of opportunities ahead.
“Fiscal 2022 was another dynamic year,” said Schottenstein to shareholders in a letter filed to regulators as part of the company’s annual proxy statement.
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“Consumers were experiencing rising inflation and higher interest rates,” he said. “At the same time, we continued to navigate supply chain disruptions, which drove elevated costs and product delays.…We pivoted swiftly to adjust inventory, seek efficiencies and maximize productivity. Ultimately, this drove a meaningful improvement in operating income and free cash flow in the second half of fiscal 2022, enabling us to end the year in a healthy financial position.”
For the full year, the company’s revenues were down slightly at just under $5 billion while gross profits fell 12 percent to $1.7 billion and net income slipped to $125.1 million.
The second-half rebound, however, wasn’t enough to trigger incentive payments for top executives.
Schottenstein saw his total pay package fall 34.3 percent to $9.8 million from $14.9 million in 2021, when the CEO received $5.9 million in incentive compensation.
The vast majority of the CEO’s pay last year came in the form of stock and option awards, which were valued at $7.8 million, but are dependent on the company’s stock price — tying the executive’s pay to the portfolios of shareholders.
Jennifer Foyle, president and executive creative officer for American Eagle and Aerie, saw her pay decline 38.2 percent to $5.4 million, including stock and options valued at $4 million.
While the environment is still tricky, Schottenstein said the company is ready for what’s ahead.
“Looking ahead, I see no shortage of opportunities for our company,” the CEO said. “We have been battle-tested in many ways over the past several years and have entered fiscal 2023 more agile and disciplined.”
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