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Total Compensation Skyrockets for Dillard Family Members

3 min read

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

Together, the nine Dillard family members had total compensation of $45.9 million for the fiscal year that ended Jan. 29, according to the company’s annual proxy statement filed last month. For the previous year, the total compensation package for the family was worth $12.9 million

The rise in value was tied to an increase in the value of the top executives’ bonuses being paid.

The proxy announced the department store chain’s annual shareholders meeting will be held at 9 a.m. on May 21 at the corporate headquarters at 1600 Cantrell Road.

During the meeting, Dillard’s will ask shareholders to approve a new Class B board member, William “Chip” Connor, 72, to replace Frank R. Mori, who was not re-nominated for reelection.

Connor is the chairman and CEO of the William E. Connor Group of Hong Kong. Dillard’s has maintained a longstanding relationship with the Connor Group, one of the world’s largest privately held merchandise sourcing companies, representing more than 60 leading retailers.

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 2021.

William Dillard II and his brother Alex Dillard’s base salaries remained at $1.07 million last year. Their brother and sister, Mike Dillard and Matheny, also maintained their base salaries of $765,000.

Some compensation highlights as compared with the previous year:

  • William Dillard II’s total compensation skyrocketed by 357% to $12.6 million. The bulk of the compensation stemmed from receiving a $10.9 million bonus. His pension fund showed an increase of $365,218, which was down from the previous year of $1.7 million.
  • Alex Dillard’s total compensation also jumped to $12.3 million, up from $3.5 million the previous year. He also received a $10.9 million bonus. His pension fund shows it didn’t gain any value compared with $2.2 million the previous year.
  • Mike Dillard’s total compensation climbed to $6.4 million from $1.96 million in 2021. His bonus was $5.4 million. And his stock awards were worth $45,000, about the same as the previous year.
  • Matheny’s total compensation was $6.3 million, up from $2.1 million the previous year. Her bonus and stock awards were the same as Mike Dillard’s. The value of her pension fund had no gain, and the previous year it increased $1.3 million.
  • Johnson, a non-family member among the named executive officers, earned a base salary of $575,000 in 2021, an increase from his base salary of $550,00 from the previous year. His total compensation jumped to $3.4 million, up from $940,024 the previous year. The bulk of the increase stemmed from a $2.7 million bonus.
  • Watts, who also isn’t a family member, had a base salary identical to that of Johnson. Watts’ total compensation was $3.4 million, an increase of 235% from the previous year. There was no change in his pension value in 2021 and the previous year it was $379,404.

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 $640,000 salary and a total compensation of $3.5 million. She received a bonus of $2.7 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 $660,192, plus another $126,562 in benefits. He also was awarded a bonus of $2.7 million that was paid on April 4.
  • Alexandra Lucie, a daughter of Alex Dillard, was paid $362,500 in salary in 2021 as a vice president of Dillard’s. She also received $93,842 in benefits.
  • Annemarie Jazic, another daughter of Alex Dillard, received a salary and bonus of $403,750 as a vice president. The benefits she received in 2021 were worth $103,638.
  • Michelle Hobbs, another daughter of Alex Dillard, was paid a salary of $230,000 for being a director of exclusive brand shoes for the company. Her benefits were worth $21,309.
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