St. John Executives Tend to Own Knitting

Executives at St. John Knits saw modest increases in their pay in 1997 as the company’s profits soared, but its stock price slumped.

In its annual proxy statement filed with the Securities and Exchange Commission, the Irvine-based maker of upscale women’s apparel reported that the pay of co-founder, chairman and chief executive Robert E. Gray rose 3.3% last year, to $1.56 million. Co-founder and chief designer Marie Gray earned $419,457, a 5.6% increase, and President Kelly Gray, the Grays’ daughter, made $604,616, an 8.2% increase.

St. John’s profits in the year ended Nov. 2 rose 27% to $34.4 million. Its stock price fell 15% over the same period.

The husband-and-wife team also hold unexercised stock options worth $12.7 million, according to the proxy. Kelly Gray, who models the company’s clothing in all of its advertisements, has $1.9 million worth of unexercised options.

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Russ Stanton covers retail businesses and restaurants for The Times. He can be reached at (714) 966-5609 and at russ.stanton@latimes.com.