As Pacific Sunwear Profits, so Does Its CEO

Pacific Sunwear of California Chief Executive Greg Weaver took home $1.14 million in salary, bonus and other payments last year, a 22% increase from 1997, as the Anaheim youth-apparel retailer’s stock price and profits rose sharply.

Weaver also exercised stock options accrued in recent years that gave him an additional $4.03 million, according to the company’s annual proxy statement, filed Monday with the Securities and Exchange Commission.

The $1.14 million included salary of $509,600, a 17% increase over his 1997 base pay; a $600,000 bonus, up 25%; and retirement, deferred compensation and insurance payments totaling $32,965, a 21% gain.

Weaver’s compensation came as Pacific Sunwear posted record profits for the fiscal year ended Jan. 31. Net income rose 43%, to $23.5 million, on a 41% jump in sales, to $321.1 million.

Pacific Sunwear’s stock rose 26% over the same period, closing the fiscal year at $25.31. It has since risen to $35.75.

Weaver looks to see another healthy increase in his compensation this year. In February, his base salary was increased 17.7%, to $600,000. The new employment agreement includes a car allowance of $800 a month.

He also was granted 100,000 stock options in September 1998 and another 50,000 options in January, according to the proxy.

In March, Weaver also was granted restricted stock that the company valued at $3.2 million. He received 31,641 shares for meeting certain financial goals and will receive more shares over the next three years if additional goals are met.

Pacific Sunwear achieved several of its strategic objectives last year, including opening 74 stores, relocating or expanding 15 stores, moving the corporate offices and distribution center and improved financial results, according to the proxy.

President Timothy M. Harmon’s total compensation came to $615,282, a 29% increase over 1997, including a $261,300 bonus.

Executive bonuses are based on the company’s earnings and a manager’s job performance, according to the proxy. In fiscal 1998, Pacific Sunwear officers were awarded a total of $1.28 million in bonuses, ranging from 11% to 120% of their base salaries.