Total Compensation Climbs for Dillard Family Members

Dillard's Inc. CEO William Dillard II said the company is confident going into the holiday sales season.

Dillard family members who work at Dillard’s Inc. (NYSE: DDS) of Little Rock saw their total compensation packages soar in the most recent fiscal year.

Together, the nine Dillard family members had a total compensation of $70.2 million in the year that ended Jan. 28, according to the annual proxy statement filed Friday. For the previous year, the total compensation package was worth $45.9 million.

Most of the increase was tied to a rise in the value added to top executives’ pension funds.

The proxy announced the department store chain’s annual shareholder’s meeting will be held at 9 a.m. on May 20 at the corporate headquarters at 1600 Cantrell Road.

During the meeting, Dillard’s will ask shareholders to reappoint KPMG LLP as the company’s public accounting firm for fiscal 2023. KPMG received $1.5 million in total fees in 2022, up from $1.4 million a year earlier.

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 2022.

William Dillard II and his brother Alex Dillard’s base salaries increased to $1.12 million from $1.07 million in 2021. Their brother and sister, Mike Dillard and Matheny, also received a raise in their base salaries to $800,000, up from $765,000.

Some compensation highlights as compared with the previous year:

• William Dillard II’s total compensation jumped by 78.5% to $22.6 million. The bulk of the compensation stemmed from receiving a $4.9 million bonus. His pension fund showed an increase of $15.2 million, which was up from the previous year of $365,218. The median Dillard’s full-time store employee was $33,854, making the ratio of Dillard II’s annual total compensation to the median annual total compensation of all other employees 667-to-1.
• Alex Dillard’s total compensation also increased to $24.7 million, up from $12.3 million the previous year. He also received a $4.9 million bonus. His pension fund shows a gain of $17.3 million, compared with not showing any gain the previous year.
• Mike Dillard’s total compensation climbed to $10.5 million from $6.4 million the previous year. His bonus was $1.7 million. And his stock awards were worth $373,406. His pension fund shows a gain of $7.2 million, compared with not showing any gain the previous year.
• Matheny’s total compensation was $6.2 million, a slight decline from $6.3 million the previous year. Her stock awards were the same as Mike Dillard’s. The value of her pension fund increased $3 million when the previous year it had no gain.
• Johnson, a non-family member among the named executive officers, earned a base salary of $625,000 in 2022, an increase from $575,000 in 2021. His total compensation slipped to $3.2 million from $3.4 million the previous year. The bulk of the increase stemmed from a $1.3 million increase in the value of his pension fund.
• Watts, who also isn’t a family member, had a base salary identical to that of Johnson. Watts’ total compensation climbed to $5.9 million from $3.4 million the previous year. His pension value increased $4 million, making up the bulk of his increase.

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

• Denise Mahaffy, is a senior vice president of the retailer and a director. She received a $664,808 salary and a total compensation of $1.1 million. She received a bonus of $869,000 million that was paid on April 4.
• William Dillard III, is a senior vice president of the company and a director. He is the son of the CEO, and was paid a salary of $707,500 and received another $430,695 in benefits. He also was awarded a bonus of $869,000 that was paid on April 4.
• Alexandra Lucie, a daughter of Alex Dillard, was paid $916,346 in salary and bonus in 2022 as a vice president of Dillard’s. She also received $154,369 in benefits.
• Annemarie Jazic, another daughter of Alex Dillard, received a salary and bonus of $888,750 as a vice president. The benefits she received in 2022 were worth $56,988.
• Michelle Hobbs, another daughter of Alex Dillard, was paid a salary and bonus of $568,077 for being a director of exclusive brand shoes for the company. Her benefits were worth $56,988.