Nordstrom’s C-suite Pay Slips
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The brothers at the top of Nordstrom Inc. both saw their compensation fall last year as incentive pay from 2021 was not repeated and their stock option awards were reduced.
Erik Nordstrom, chief executive officer, and Peter Nordstrom, president and chief brand officer, each saw their 2022 take fall 46 percent to $3.5 million, according to the company’s proxy statement.
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The brothers, great-grandsons of the company’s founder, received largely identical pay packages, including salaries of $758,500 and stock and option awards valued at $2.7 million.
In 2021, they both received stock and options valued at $3.7 million as well as $1.9 million in incentive pay.
The stock-based compensation is dependent on the company’s Wall Street performance, tying executive pay to the stock movements that impact investors.
The retailer noted in the statement, filed with the Securities and Exchange Commission, that roughly 85 percent of the CEO’s target pay last year “was variable or linked to our financial or market results.”
That theoretically leaves much of the Nordstrom’s pay in their own hands, although there is only so much even top executives can control in the topsy-turvy world of retail today.
Two Nordstroms as well as chairman Bradley Tilden addressed some of the broader landscape in a letter to shareholders that was included with the proxy.
“In 2022, we marked 121 years since John W. Nordstrom opened the downtown Seattle shoe store that would become Nordstrom as we know it today,” the trio said. “121 years may seem like an arbitrary milestone, but in an industry that’s constantly reinventing itself, you learn not to take a single day for granted.
“Our company has navigated this ever-shifting landscape by focusing on a collective purpose: to help customers feel good and look their best,” they said.
“This focus has proven especially critical in the face of challenges or periods of rapid change, and 2022 was no exception,” they said. “We started the year with a plan to improve inventory flow, increase the speed and efficiency of our supply chain and sharpen our focus on driving top- and bottom-line growth at Nordstrom Rack.”
This year, the company is working on the Rack more, to boost inventory productivity and continue to optimize its supply chain while making sure its resources are matched up with the best opportunities, a factor cited in relation to the closure of Nordstrom’s Canadian stores.
And the company’s going to have a little extra help in the boardroom to work on its plan having named Eric Sprunk, former Nike Inc. chief operating officer, as a director in a separate announcement on Monday.
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