Last week, Kate Spade parent company Fifth & Pacific announced that it would be changing its name to Kate Spade & Company, having sold off its two other clothing labels, Juicy Couture and Lucky Brand. The transition also marks a leadership change, with Kate Spade CEO Craig Leavitt taking over the reins from Fifth & Pacific chairman and CEO William L. McComb in late February.
According to an SEC filing published yesterday (hat tip: WWD), we now know that Leavitt and Kate Spade Chief Creative Officer Deborah Lloyd are set to receive base salaries of $1,500,000 and $1,900,000, respectively.
Add onto that an annual cash bonus equal to 150% of that base salary for Leavitt and 175% for Lloyd, along with market shares and long-term incentive awards of no less than $5,000,000 for Leavitt and $3,275,000 for Lloyd.
So, pretty good employee benefits.
By contrast, J.Crew Group CEO Mickey Drexler’s base salary is $200,000 and Jenna Lyons’ is $1,000,000. That’s, of course, before bonuses: according to a filing from last April, Drexler received $2,649,333 in compensation for the 2012 fiscal year, while Lyons earned $4,804,081.
Compensation agreements have yet to be finalized for George Carrara, currently the executive vice president, chief operating officer and chief financial officer of Fifth & Pacific, who has been promoted to president and chief operating officer of Kate Spade & Company.
The name and management changes go into effect on Feb. 25, after the release of fourth quarter earnings. We’ll be looking to see how the newly singular focus on Kate Spade and its diffusion line, Kate Spade Saturday, manifests in 2014.