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Total Compensation Falls for Dillard Family Members

3 min read

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

Together, the nine Dillard family members had a total compensation of $41.5 million in the fiscal year that ended Feb. 3, according to the annual proxy statement filed Friday. For the previous year, the total compensation package was worth $70.2 million.

The value added to top executives’ pension funds in 2023 wasn’t as high as it was the previous year, which accounted for the decrease in total compensation.  

The proxy announced the department store chain’s annual shareholder’s meeting will be held at 9 a.m. on May 18 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 2024. KPMG received $1.71 million in total fees in fiscal 2023, up from $1.5 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 $1.17 million from $1.12 million in 2022. Their brother and sister, Mike Dillard and Matheny, also received a raise in their base salaries to $830,000, up from $800,000. 

Some compensation highlights as compared with the previous year:

  • William Dillard II’s total compensation fell 44.9% to $12.45 million. He received a $3.6 million bonus in 2023. His pension fund showed an increase of $6.9 million, when the previous year it was a $15.2 million increase. The median Dillard’s full-time store employee was $36,003, making the ratio of Dillard II’s annual total compensation to the median annual total compensation of all other employees 346-to-1.
  • Alex Dillard’s total compensation also dropped to $13.5 million, down from $24.7 million the previous year. He also received a $3.6 million bonus. His pension fund shows a gain of $8 million, compared with a gain of $17.3 million the previous year.
  • Mike Dillard’s total compensation slid to $4.8 million, down from $10.5 million the previous year. His bonus was $1.4 million. And his stock awards were worth $153,013. His pension fund shows a gain of $2.2 million, compared with a gain of $7.2 million the previous year.
  • Matheny’s total compensation was $4.6 million, a decline from $6.2 million the previous year. Her stock awards were the same as Mike Dillard’s. The value of her pension fund increased $2.1 million when the previous year it had a gain of $3 million. 
  • Johnson, a non-family member among the named executive officers, earned a base salary of $665,000 in 2023, an increase from $625,000 in 2022. His total compensation slipped to $2.4 million from $3.2 million the previous year. The value of his pension fund increased $712,793 when the previous year it was $1.3 million.
  • Watts, who also isn’t a family member, had a base salary identical to that of Johnson. Watts’ total compensation slipped to $3.7 million from $5.9 million in 2022. His pension value increased $2 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 is a sibling of William Dillard II, Alex Dillard, Mike Dillard and Drue Matheny. She received a $708,269 salary and a total compensation of $928,529. She received a bonus of $825,000 that was paid on April 2.
  • 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 $764,618 and received another $228,163 in benefits. He also was awarded a bonus of $825,000 that was paid on April 2.
  • Alexandra Lucie, a daughter of Alex Dillard, was paid $912,788 in salary and bonus in 2023 as a vice president of Dillard’s. She also received $147,500 in benefits.
  • Annemarie Jazic, another daughter of Alex Dillard, received a salary and bonus of $794,069 as a vice president. The benefits she received in 2023 were worth $134,285.
  • Michelle Hobbs, another daughter of Alex Dillard, was paid a salary and bonus of $501,442 for being a director of exclusive brand shoes for the company. Her benefits were worth $54,796.