There is also an article over at the StyleList (click here) that shares the same news:Jenna Lyons Promoted at J.Crew
By Ashley Baker
April 16, 2010
Jenna Lyons is doing something very, very right. J.Crew Group Inc. has just announced that Lyons, formerly creative director, has been promoted to executive creative director for J.Crew, and she will receive a $325,000 bonus. This comes six months after Lyons received a $1 million bonus, which was awarded on the condition that she must pay it back in full should she leave J.Crew within 2 years or pay back in half should she exit the brand in 4 years.
Chairman and chief executive officer Millard "Mickey" Drexler will also benefit from a cash payout of $2 million, part of the a series of bonuses paid out by the company's compensation committee to reflect J.Crew's strong performance. Other beneficiaries include Tracy Gardner, president of the retail and direct businesses, who will receive $425,000, chief administrative and financial officer James Scully, who will get $250,000 and executive vice president of factory Libby Wadle, who will receive $200,000. In 2009's extremely challenging climate, J.Crew’s total income more than doubled, with a revenue increase of $1.58 billion.
J.Crew is definitely doing something right! They have been outperforming competition for the past several years. More importantly, they have been outperforming market analysts expectations in terms of performance. As a stock holder, I am very pleased.J.Crew Bestows Big Bonuses on Jenna Lyons, Mickey Drexler
By Lisa Marsh
April 16 2010
A promotion and a bonus. Jenna Lyons, J.Crew's creative director, has been promoted to executive creative director and was awarded a $325,000 bonus in recognition of both individual and company performance in fiscal 2009. This comes on top of her "one-time" $1 million bonus that she received in October 2009. It's good to be queen!
In addition, other J.Crew executives also pulled down some nice change, too. Tracy Gardner, president, was awarded $425k, chief financial officer James Scully was awarded $250k, executive vice-president Libby Wadle was awarded $200k, and the big kahuna Millard "Mickey" Drexler, the company's CEO and chairman, was awarded a whopping $2 million.
An SEC filing said the company had suspended its cash incentive plan at the beginning of its fiscal year, "in light of the then challenging economic conditions," but reinstated the program after the company outperformed its financial goals for the year.
It seems steering the company into partnerships with Fenton/Fallon, Net-a-Porter, Miriam Haskell for bridal among others were not bad moves for Lyons. Plus, it doesn't hurt that the company is a favorite fashion resource for the First Family.
I definitely believe these executives deserve a bonus & promotion. Not only are they performing well, J.Crew wants to make sure they can retain them, their top talent. (I believe I read somewhere that some of J.Crew's creative team had been lured away by other companies, like the Loft.)
Although, casual-crew (in this post) raised an interesting point: "...Executives get bonuses while their staff had to take cuts to their pension..." The second article mentions: "An SEC filing said the company had suspended its cash incentive plan at the beginning of its fiscal year, "in light of the then challenging economic conditions," but reinstated the program after the company outperformed its financial goals for the year." Here's to hoping J.Crew is taking care of all their other {talented} employees as well.
What are your thoughts on this latest news? Do you agree or disagree with the decision to promote Jenna Lyons? Are the bonuses an appropriate or inappropriate decision? :)
Lyons and Drexler deserve what ever it will take to keep them! They have made shopping fun again--at least to me and according to the numbers a lot of other folks as well. Bravi! That said--I trust they are compensating the rest of their team in kind.
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ReplyDeleteFirst, clearly I am in the wrong job. LOL.
ReplyDeleteSecond, how about a bone for us loyal drinkers of the Crewlade? If they're rolling in the dough, throw a sister some more free shipping codes (with NO minimum or, if you must, a $50 minimum) ... and howzabout we do extra30 monthly?
Tee hee.
Dang.
ReplyDeleteI agree with Elaine, if JC is doing so well, how about some love to those of us who got them to their record-breaking sales figures? :o)
Makes sense considering how well the brand is doing. I hope they're rewarding the 'little' guys & gals too -- the rest of the design team, the sales and administrative staff, whoever does their marketing (clearly the winner here!) etc.
ReplyDeleteI think they're (Mickey and crew's) answer to our asking for a shout-out in the form of another extra30 or free shipping is " Buy (more) stock!" hahahaha :D
ReplyDeleteBTW: I agree with casualcrew...hopefully Mickey and the rest of upper management will reinstate the bennies due to those employees under them. Usually, it's those folks who keep things aloft day to day!
ReplyDeleteWhy just reward the celebrity spokeswoman? That's what got Wall Street down in the last couple years. Let's not forget the little guys who lifted them through.
ReplyDeleteIn this economic climate, I kind of think this news should be kept private. I don't know if that's possible though. I work hard for every dollar I spend at J.Crew and while I love what Jenna has done, it just kind of seems weird to read about her and the others receiving that much money. I've been a loyal J.Crew customer since 1991 when Barn Jackets were the rave. I'd appreciate a gift card once in a while--even if it's just $10--or free shipping codes with no minimum purchase required, like you used to include in your catalogs. Reward your customers also, J.Crew. While Jenna has some great ideas, they mean nothing if noone purchases the clothes. Your customers make your company.
ReplyDeleteA PS I was working with last summer mentioned to me in passing that she worked 36 hours a week, which of course made my ears perk up. I wonder if JC has cut employees down to less than 40 hours a week to cut down on paying benefits to full-time employees. This would make me sad. Despite what Mickey says (customers buying full price worried about things selling out=increased profits, etc.), I think their outperforming others in this climate has to have other reasons, too. But I am happy for Alexis and other stockholders that the stock is doing well; hopefully this will mean good things for the rest of us design and promotion wise.
ReplyDeletedid you guys see this--they are filming an Oprah segment right now:
ReplyDeletehttp://fashionista.com/2010/04/jenna-lyons-is-filming-oprah-right-now/
Elaine! How right you are! Give loyal customers a break - send us some coupons for a great one time big discount on one item, or free shipping on orders smaller than 150.00!! Remember the month we had 25% off coupons? I'm just saying - we're loyal too!
ReplyDeleteI agree with you Elaine and Deborah!
ReplyDeleteJenna and Micky may deserve some bonus for their work but it is all at the expense of the customers. In this economic climate if you can afford to reward your execs with that much money then reward your loyal customers with more than just totes, earrings, or planners.
Other retailers are known to send coupons or $ rewards for birthdays, let alone low flat rate or free shipping with no/low minimum. But then who am I kidding? Mickey does not want to be like other retailers!
Like Alexis already said, this makes me happy as a stock holder. As a customer, I really wouldn't be sad if Jena left the company since I'm not particularly fond of most of her design ideas.
ReplyDeleteDeborah, they absolutely cannot keep this information hidden from stockholders. That would be a huge ethics violation.
Deborah-
ReplyDeleteI'm studying for my Securities Regulation final right now, and Jeanne is right - you have to disclose all material compensation to your SH quarterly. Generally material means only the "biggest" employees - CEOs, directors, etc. That's why it's more difficult to find out what they're doing for the "little guys." Hopefully it's something, though!
I think this is great. Jenna has accomplished amazing success at J.Crew and she deserves to be compensated and recognized for her work. Same for Mickey, especially in the current retail climate.
ReplyDeleteI don't like everything they churn out and I go through phases where I get bored and buy very little, like the past while. Overall though, I purchase a lot of my wardrobe from J.Crew. Whether it's the flattering styles, the gorgeous colors, the beautiful prints or the quality fabrics, there is almost always something on the top of my shopping list.
Thanks Jeanne and Amanda, for that info.
ReplyDeleteIt’s really a cool website. I’m glad that you just shared this helpful information with us.
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