Calvin McDonald stretched into a slightly higher pay grade at Lululemon Athletica Inc. last year.
McDonald, who’s been chief executive officer since 2018, saw his compensation rise 5.3 percent to $16.5 million last year from $15.7 million in 2022, according to the company’s proxy statement filed with the Securities and Exchange Commission.
Most of that pay came from a total of $10 million in stock and option awards, the full value of which will depend on how Lululemon’s stock performs and when the CEO gets access to the shares.
The next biggest — and altogether more tangible — part of McDonald’s compensation came in the form of $5.2 million in incentive pay. That amounted to 200 percent of his target bonus as both revenues ($9.6 billion last year) and operating income ($2.2 billion) exceeded the threshold for the maximum bonus set by the board.
On top of that, McDonald received a salary of $1.3 million and other compensation of $33,290.
McDonald might be one of the highest paid CEOs in retail and fashion, but he is not at the top of the list. Retailers are just now issuing their proxy statements, so the compensation picture if still forming, but Doug McMillon received a stock-heavy $27 million pay package to run Walmart Inc. as CEO.
Lululemon has been one of the strongest players in fashion for years, growing quickly both before and after the pandemic sent half the country into casual, athletic looks full time.
But the brand is now facing a challenge, with McDonald warning in March that “there has been a shift in the U.S. consumer behavior of late, and we’re navigating what has been a slower start to the year.”
