Dillard Family’s Pay Rose in 2016

Dillard’s headquarters at 1600 Cantrell Road in Little Rock. 

Dillard family members who work at Dillard’s Inc. of Little Rock saw their total compensation packages rise in 2016.

Together, the nine Dillard family members had a total compensation of $14.6 million in 2016, according to the annual proxy statement released Friday. For the previous year they were paid a total of $12.3 million. Most of the increase, however, is tied to a rise in the value of the top executives’ pension fund.

The proxy announced the date and time for the department store chain’s annual shareholder’s meeting: 9 a.m. on May 20 at the corporate headquarters, 1600 Cantrell Road in Little Rock.

None of the six named executive officers — CEO William Dillard II, President Alex Dillard, Executive Vice Presidents Mike Dillard and Drue Matheny and Senior Vice Presidents Chris B. Johnson and Phillip R. Watts — exercised stock options in 2014.

William Dillard II and his brother Alex Dillard kept the same base salary of $1 million in 2016. Their brother and sister, Mike Dillard and Drue Matheny, also kept their same base salaries of $735,000 in 2016.  

Some compensation highlights:

• William Dillard II’s total compensation increased to $4 million in 2016 from $3.3 million in 2015. The rise was tied to an increase in his pension value to $1.5 million, when it had a decrease in 2015. The value of his stock award, though, decreased 19.8 percent to $166,146 in 2016.

• Alex Dillard’s total compensation climbed to $3.6 million from $3.3 million the previous year. Like his older brother’s, his compensation package included a $1.1 million bonus and stock awards valued at $166,146.

• Mike Dillard’s total compensation also rose from 2015. His moved to $1.96 million from $1.8 million the previous year. His stock awards were worth $91,188, which was down from $107,595 in 2015. His bonus also declined 37.2 percent to $502,550 in 2016. His pension value rose to $503,478 in 2016.

• Matheny’s total compensation was $2.1 million in 2016, up from $1.8 million in 2015. Her bonus and stock awards were the same as Mike Dillard’s. The value of her pension increased to $676,794 in 2016.

• Johnson, a non-family member among the named executive officers, earned a base salary of $500,000, the same as he did in 2015, and a bonus of $154,600. His total compensation was $968,201, an increase of 5.7 percent.

• Watts, who also isn’t a family member, also had a base salary and bonus idential to that of Johnson. Watts’ total compensation, though, was $1.4 million, an increase of 38.4 percent because the value of his pension increased 301 percent to $619,612, compared to Johnson’s increased value of $164,801.

The proxy also reveals the compensation packages of five other members of the Dillard family:

• Denise Mahaffy, sister of William, Alex and Mike Dillard and Drue Matheny, was paid a salary and bonus of $846,000 in 2016, up from $747,000. Mahaffy, a senior vice president, also received $159,791 in unspecified benefits. She was also awarded a bonus of $154,600, which was paid on Friday.

• William Dillard III, son of the CEO, was paid $836,000 in salary and bonus as a senior vice president, plus $158,692 in benefits. His salary and bonus in 2015 was $736,000. He also was awarded a bonus of $154,600, which was paid on Friday.

• Alexandra Dillard, daughter of Alex Dillard, was paid $358,000 in salary and bonus as a general merchandise manager, plus $34,929 in benefits.

• Annemarie Dillard, another daughter of Alex Dillard, was paid $341,000 plus $32,419 in benefits as a manager.

• Michelle Dillard, another daughter of Alex Dillard, was paid a salary and bonus of $192,000 and a bonus of $3,651 in 2016.