Quiksilver Boss Takes Soaring Profit Personally

With Quiksilver Inc.’s profits swelling by 48% over the last fiscal year, the surfwear maker’s boss is getting a financial pat on the pack--a 50% boost in his salary.

Chief Executive Robert McKnight Jr.’s annual salary has risen to $600,000 as of Feb. 1, from $400,000 last year, according to a document filed Wednesday with the Securities and Exchange Commission.

McKnight also earned a $1.2-million bonus in 1999, which was tied to the company’s performance.

With the Huntington Beach company continuing to experience strong growth, it “only made sense” for McKnight’s salary to jump this year, said Steven Brink, Quiksilver’s chief financial officer.

“The key thing is, we had another great year,” he said. “If you look at other apparel companies, you won’t find too many growing like ours in such a profitable way.”

In addition to the $1.6-million salary and bonus McKnight received for the last fiscal year, he also received $6,400 in the form of premiums paid for his life insurance policy and company contributions to his 401(k) plan. He holds exercisable stock options worth about $3.2 million, according to the proxy.

McKnight, who owns 5% of the company’s stock, could not be reached for comment. However, he had previously described the annual results as “a banner year” for the company he co-founded.

Quiksilver had “well-rounded” growth for the year, he said. It opened 25 Boardriders Clubs, which is what Quiksilver calls its retail outlets. The new stores include one on the Champs-Elysees in Paris.

The company earned $26.6 million for the fiscal year ended Oct 31. Sales jumped 40% to $443.7 million.

Quiksilver makes a wide range of sportswear for men, women and children. Its other brands include Roxy, Teenie Wahini and Raisins Girls. The company also makes snowboards and snowboard boots and bindings under the Lib Technologies, Gnu and Bent Metal labels.

Quiksilver’s stock closed Wednesday at $9.88, down 13 cents, in New York Stock Exchange trading.