Calvin McDonald’s Pay Continues to Rise as Lululemon Strengthens
The spring in Lululemon Athletica Inc.’s step has been good for Calvin McDonald’s paycheck.
The chief executive officer saw his total compensation rise 18.1 percent to $15.7 million last year.
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Most of the pay came from stock and option awards that were valued at a total of $10 million and link the executive’s fortunes to those of shareholders. His salary tallied $1.3 million.
But McDonald also received incentive pay of $4.4 million — 200 percent of his target and his maximum potential bonus for the year. To hit that mark, Lululemon needed to see revenue of $7.5 billion and operating income of $1.7 billion for the year.
What the active brand turned in was adjusted revenues of $8.1 billion with operating income of $1.8 billion — a big leap despite a $442.7 million charge to write down the Mirror acquisition, which fell short of expectations.
The pay details were included along the company’s proxy statement, which was filed with the Securities and Exchange Commission ahead of the firm’s annual meeting on June 7.
McDonald has a good report to give to shareholders at the meeting.
In March, the CEO told analysts on a conference call that in the fourth quarter: “The adult active apparel industry decreased its U.S. revenue by 5 percent compared to the same period last year. And over this time period, Lululemon gained 2.3 points of market share in the U.S., the most of any brand in this market according to NPD Group’s consumer tracking service. This is the highest quarterly market share gain we’ve achieved since we began tracking these numbers in 2020, and it caps a year in which we grew our market share every quarter. This speaks to our growth in the U.S., a key market within North America.”
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