Total Compensation Falls for Dillard Family Members

If Dillard’s could realize more revenue from real estate, its stock price could top $200, Jeff Pierce of Snow Park Capital Partners said.

Dillard family members who work at Dillard’s Inc. of Little Rock saw their total compensation packages plummet in the most recent fiscal year.  

Together, the nine Dillard family members had a total compensation of $11.68 million in the year that ended Feb. 2, according to the annual proxy statement filed Friday. For the previous year, the total compensation package was worth $16.9 million.

Most of the decline was tied to a drop 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 18 at the corporate headquarters, 1600 Cantrell Road.

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 2017.

William Dillard II and his brother Alex Dillard received $35,000 bumps in their base salaries in 2018, to $1.03 million. Their brother and sister, Mike Dillard and Drue Matheny, also received raises of $15,000, bringing in their base salaries to $750,000.  

Some compensation highlights as compared with the previous year:

• William Dillard II’s total compensation fell to $3.3 million from $4.8 million. His pension fund gained $1.02 million, compared with $2.5 million the previous year. The value of his stock award also fell 8% to $116,686. His bonus fell from $928,800 to $904,800.

• Alex Dillard’s total compensation dropped to $2.5 million from  $4.2 million. His pension fund value increased by $224,742, compared with $2 million the previous year.

• Mike Dillard’s total compensation fell from $2.3 million to $1.3 million. His stock awards were worth $68,980, down from $73,353 the previous year. His bonus also declined 2.6% to $405,500. His pension value increased $16,885; the previous year it increased by $957,639.

• Matheny’s total compensation was $1.5 million, down from $2.5 million. Her bonus and stock awards were the same as Mike Dillard’s. The value of her pension fund increased $220,369 in 2018.  

• Johnson, a non-family member among the named executive officers, earned a base salary of $525,000, an increase of $25,000 from 2017. He also had a bonus of $124,800, a slight decline from $128,100 the previous year. In 2018, his total compensation was $773,337, a decline from the $969,376 in 2017.

• Watts, who also isn’t a family member, also had a base salary and bonus identical to that of Johnson. Watts’ total compensation, though, also saw the value of his total compensation dip in 2018. It was $786,208, down from $1.3 million the previous year. The change in his pension value in 2018 was $45,713, down from $606,557 the previous year.

The proxy also lists 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 $745,000, down from $766,000. Mahaffy, a senior vice president, also received benefits worth $109,200 and on Friday was paid an additional bonus of $124,800.

• William Dillard III, son of the CEO, was paid $737,000 in salary and bonus as a senior vice president, plus another $108,300 in benefits. He also was awarded a bonus of $124,800, which was paid on Friday.

• Alexandra Lucie, daughter of Alex Dillard, was paid $372,000 in salary and bonus as a vice president of Dillard’s. She also received $69,000 in benefits in 2018.

• Annemarie Jazic, another daughter of Alex Dillard, received a salary and bonus of $357,000 as a vice president. The benefits she received in 2018 were worth $64,300.

• Michelle Dillard, another daughter of Alex Dillard, was paid a salary and bonus of $227,000 for being a manager of the company. Her benefits were worth $21,600.