Kohl’s top executives reap big bonuses amid rebound
Top executives at Kohl’s Corp. received hefty bonuses for 2017 as the company’s financial performance rebounded.
After falling for five straight years, Kohl’s annual net income rose in 2017, by 4.5% when adjusted for one-time events.
Adjusted net income also hit the top target set early in 2017 by the board of directors for bonus purposes.
That qualified CEO Kevin Mansell and CEO-elect Michelle Gass for bonuses totaling 250% of their annual salaries. Mansell’s bonus of $3,562,500 was more than six times the $531,000 to $562,000 he received in each of the previous five years, a period in which the Menomonee Falls-based retailer struggled.
Gass got a $3.5 million bonus — more than 10 times what she received in 2016 and 2015.
Executives Sona Chawla, Richard Schepp and former chief financial officer Wesley McDonald also received large bonus increases.
Mansell will retire at the close of Kohl’s annual meeting on May 16 as CEO, president and chairman of the firm’s board. Gass, currently chief merchandising and customer officer, will succeed him as CEO. Chawla, the chief operating officer, will become president.
For the year, Mansell’s total compensation was $11.3 million, including his salary, bonus and stock awards. That was up from $8.4 million in 2016.
Gass’ total compensation for 2017 — $12.6 million — exceeded Mansell’s because she received more stock. With large increases in her stock awards and bonus, Gass’ total compensation more than tripled from the $3.3 million she received in 2016.
Kohl’s netted $859 million last year on $19.1 billion in sales. That was up from a 2016 profit of $556 million on $18.7 billion in sales.
Excluding the effects of one-time events, net income totaled $703 million in 2017, and $673 million in 2016.
While not an element in determining bonus levels, Kohl’s stock price has risen strongly since last summer. Shares then were trading around $40. They closed Thursday at $65.51.