Millard S Drexler
63 years old
CEO/Chairman of the Board/Director at J.Crew Group, Inc.
New York, New York
Officer since January 2003
Director since March 2003
"Mr. Drexler has been our Chief Executive Officer, Chairman of the Board and a director since 2003. Before joining J.Crew, Mr. Drexler was Chief Executive Officer of The Gap, Inc. from 1995 until 2002, and was President of The Gap, Inc. from 1987 to 1995. Mr. Drexler also serves on the Board of Directors and Compensation and Nominating and Corporate Governance Committees of Apple, Inc."- Cash Compensation = $2,153,417
[Salary: $200,000 + Bonus: $1,504,000 + Latest FY other long-term comp: $449,417] - Stock Options = $806,206
44 years old
President, Divisional at J.Crew Group, Inc.
New York, New York
Officer since March 2004
"Ms. Gardner has been our President- Retail and Direct since 2007 and, before that, was Executive Vice President, Merchandising, Planning & Production since 2004. Prior to joining J.Crew, Ms. Gardner held various positions at The Gap, Inc., including Senior Vice President of Adult Merchandising for the Gap brand from 2002 to 2004, Vice President of Women's Merchandising for the Banana Republic division from 2001 to 2002, Vice President of Men's Merchandising for the Banana Republic division from 1999 to 2001 and Divisional Merchandising Manager of Men's Wovens for the Banana Republic division prior to 1999."- Cash Compensation = Total: $1,771,888
[Salary: $684,600 + Bonus: $875,000 + Latest FY other long-term comp: $212,288] - Stock Options = $39,000*
I personally believe that both Mickey and Tracy are worth what they earn. (Although there is some questioning about Tracy's recent stock selling.*) Feel free to disagree or agree with me. :) What I find especially interesting is Mickey's (1) salary (which is rather low for a CEO of a firm like J.Crew) and (2) bonus (which is rather high in comparison to his salary, but I guess that is to make up for his salary). I also am curious about the decision process when it comes to distributing bonuses for the top level executives at J.Crew?
What do you think of these figures? Do you think these J.Crew executives are worth their paychecks? What do you think of Mickey's salary/bonus?
That is so interesting! I guess Mickey took Tracy with him when he left Gap, Inc. Also, did anyone notice that she has a larger salary than Mickey? I'm sure there's a "financial reporting" reason behind it but I still think it's kind of funny...You GO Tracy!
ReplyDeleteAmazing. Can you imagine that type of bonus! I wonder if MIckey took a lower salary as part of the bargaining chips for Madewell. *shrugs*
ReplyDeleteSorry to go OT so quickly but a) anyone own the Lily cashmere card? and b) how do you feel about the color Citron?
Don't worry, don't worry, I'm good...still 2 days, 2 hrs, 17 min on my no-clothing(!) fast. :-)
Wow! They both make a lot. Seems like lately there is a lot of talk on whether CEO's are worth their compensation packages or their severance packages. Sometimes, it seems disgusting that some CEO's can run a company into the ground and then get paid off to leave!! It's almost like encouraging them to think short term, get results and then make out like bandits!
ReplyDeleteWow. Why don't you ladies just get off the Mickey and Company team already? I'm sure he works really hard for what he makes. You guys seem to be at Glenn Close in Fatal Attraction level. Leave him alone already!!
ReplyDeleteI AGREE WITH TEAM J.CREW...QUIT STALKING THE MAN. AREN'T WE SUPPOSED TO BE DISCUSSING FASHION? IT SEEMS A BIT OBSESSIVE TO TALK ABOUT HIM THIS MUCH. NEXT THING SOMEONE WILL DO IS FIND HIM, AND REPORT WHAT HE HAD FOR LUNCH! I'M SO OVER THIS BOARD.
ReplyDeleteFall stuff is here! I'm so excited...I don't really care too much for discussion about ceo's, paychecks, etc. I just want to learn more about fashion and find out what everyone is wearing :)
ReplyDeleteIt doesn't matter how much Mickey and his team make. They're not going to share it with you! :P
ReplyDeleteThis blog is supposed to be about all things J.Crew. That includes what's going on with the stock, CEO, etc. I think Alexis is just trying to diversify the discussion and she even said she thinks they deserve their pay. If I see a post I'm not interested in, I just skip it. I suggest you do the same!
ReplyDeleteBTW, my earlier comment at 3:48 was directed at Give and Bored.
ReplyDeleteGigiofca - I got the Lily in Citron a few months ago and it went straight back to the store.. the color looks a lot softer online, and made me look sickly. Ick! (But you've seen me complain about the JC yellows before, I'm sure!) I got it in Heather Fossil instead and it's nice over a cami, swingy, soft. I fear that the buttons will get loose and fall off (they were loose upon arrival). I sized down for it because of the extra "swinginess".
ReplyDeleteStay strong - by now you're less than 2 days to go, right? :)
It's a lot of money to most of us, but not outrageous for a CEO. And certainly, (with the exception of the web site debacle) Drexler and his team have improved on the company, particularly in the area of design (quality is uneven, as others have noted).
ReplyDeletegigiofca
I have the Lily in navy, and I love it, but I agree with silverlining that I could have sized down, because it is a very flowy design. And that citron color is a no go for someone like me, with yellow undertones. I look jaundiced.
I'm not surprised at those salary/stock option/bonus figures. It seems pretty typical of a successful CFO or CEO. I assume the bonus figures depend on how well the company did that year and for "underlings" the hrs they put in.
ReplyDeleteWeab: I did notice that Tracy's salary is more than Mickey. I am curious as to the reasoing behind that. But I am really amazed by Tracy's salary. I love seeing top level executive women earning as much as the men.
ReplyDeleteGigiofca: I wondered the same thing about Mickey's salary and Madewell!
Melanie: I talk a lot with my students about whether CEO's are worth what they earn. What is interesting is Mickey makes about as much as Meg Whitman did when she ran all of eBay. (Which was about $3 million/year). She was one of the most underpaid executives in history.
Give Team J.Crew a Break & BOred w/This Board & the like: You are certainly entitled to your opinion. I find CEO and top level executive compensation fascinating. (I teach a business course at a University where this is one of the topics I cover- are CEO's worth what they earn.) This blog also covers a range of topics. It's not just about fashion, it's about all aspects relating to J.Crew. And of course, you have the option to pick and choose which posts you are interested in reading and posting comments to. :)
Anonymous at 3:48 AM: Thank you for understanding where I was coming from. I try my best to come up with multiple posts a day. :)
Mary: I agree that it his total take home is actual not outrageous for an executive. Although his salary is very very low for what an executive at his level should earn- which is why it was interesting to see his bonus compensate for that discrepancy.
Morning Alexis
ReplyDeleteIs there a tax break on bonuses, or is it just based on the CEO's success or failure as a leader? Just curious as to why the bonus is so large, and the salary comparatively small.
BTW, I just used SHIP-2389 on a pair of $19.99 buttery twill trousers, and it worked: free shipping, no minimum. Yippee!
FFM
ReplyDeleteHow are you doing? I'm listening to the scary reports of Fay on the news and hoping you haven't experienced too much flooding.
Hi Mary!
ReplyDeleteThere are no tax breaks on bonuses. In general, the reasons firms offer such high bonuses (in comparison to the salaries) is (1) its based on performance (like you mentioned), and (2) its based on optics- the firm guarantees the executive a bonus of a certain amount (or within a certain range)- so its really part of their salary but the firm wants to make it show that the executive earned the bonus.
For example, a friend of mine (a mid-level executive) has a boss that doesn't make that much more than him salary-wise, however his boss' bonus (which is guaranteed between a certain range) is considerably larger than his, making the boss' base take home much more significant.
Again, I find this stuff fascinating. I could talk about it all day- maybe that is why I teach it. :)
Mary: Also, thanks for letting me know about SHIP-2389. I was wondering if I should remove that code or not, so its good to know that it still works. :)
ReplyDeleteAlexis
ReplyDeleteThanks for the clear explanations! I guess it's just smart to make sure that someone who is paid such a large amount of money actually earns it. So many of these CEO's seem like snake charmers and thieves (not Drexler, though...)
Mary: No problem! :) I really do find this topic fascinating. (Especially since women executives tend to receive far less with their salary & compensation compared to their male counterparts- so it was nice to see Tracy earning as much.) You are also so right that there are some CEO's who are snake charmers and thieves like Chainsaw Al Dunlap (who in a nut shell, would come to a business, raise the stock price by downsizing & recording future sales as current sales, and then leave the firm with millions and millions only to have the firm collapse months later because of his actions- he was later convicted of fraud).
ReplyDeleteKnowing they have such large salaries makes the whole upgrade fiasco even more frustrating! They should have it fixed by now...THAT'S why they make the *big bucks*! Maybe if their bonuses were based on length of time to *fix* this disaster (being docked 20 grand or so each day it still isn't working) then perhaps it would have been fixed a long time ago.
ReplyDeletegigiofca: I personally wouldn't order anything in Citron...not even if it says *Light Citron*.
mary: Thanks for asking about us! Our property is on a hill, so we don't have an issue with flooding, however...it is very windy on a *normal* day, so the Tropical Storm force winds are a big concern. So far we have just experienced 3 days of rain and strong winds, but we are doing fine...it looks as if the storm is going to hang around for awhile, though. I would really like to see some sunshine...the constant rain is a downer.
ReplyDeleteFFM - how funny, I just saw my elusive Joelle cami online, in "Warm Citron" and put it in my cart, then thought, no! That's the softer yellow that I want, but I have to remember that it will most likely not look like that when/if I get it in the mail. Must refrain, especially after what I told gigiofca! :)
ReplyDeleteSalary doesn't mean squat to someone like Mickey. He doesn't need to work. He's a millionaire a few times over. He does it because he loves it and wants the challenge. That's why most of his compensation comes in bonus form. It's more risky and thrilling to him. :-)
ReplyDeleteSalary doesn't mean squat to someone like Mickey. He doesn't need to work. He's a millionaire a few times over. He does it because he loves it and wants the challenge. That's why most of his compensation comes in bonus form. It's more risky and thrilling to him. :-)
ReplyDeleteAlexis: I found this post, and the salaries, quite interesting. I have a feeling that the bonuses are somewhat guaranteed but can vary based on J.Crew's performance. (The staff before Drexler's reign probably weren't making as much as they make now.) And Drexler is probably rich enough that he doesn't need $5 million a year - just look at all the houses he has!
ReplyDeleteAh, Molly and I just agreed on the exact same point =)
ReplyDeleteI should point out that this year. I doubt their bonuses will be as big. When the stock price plummets that much and with this debacle they have to be hemorrhaging money. I know a lot of big NY companies have announced that NO bonuses will be given this year. They haven't publicized this fact. But a friend of mine who works for a big retail giant told me they had an all employee meeting and said at this point they can not promise bonuses but they will try. I doubt J. Crew will be able to give such sizeable bonuses this year. Last year was a bad holiday season and this year has been worst and the holiday season is looking darker everyday.
ReplyDeleteAlexis is right though, that is NOT a big salary for a national chain store.
Also I should point out most partners in bigger law firms make anywhere from 1-2 million dollars a year depending on what pay scale they are on. Really Mickey does NOT make a lot of money at all!
ReplyDeletePerhaps since J.Crew actually bought Madewell from Mickey it was a determining factor on the *lower* salary? Also, is this his *total* salary for running J.Crew AND Madewell, or does he receive seperate compensation for the Madewell brand, as well?
ReplyDeletethese people get paid way too much money for a company that has as many screw ups as they do!
ReplyDeletegigi: I hate to be the lone decenter but I bought the Citron Lily at FP and LOVE it. I wore it so often and never felt self-conscious about the brightness. I have olive skin and brown hair and I think it was very flattering with that combo. I also have citron in other pieces and love it. (To me the citrus lime is too green and neon-y but not this one.)
ReplyDeletesilver_lining - Thanks for warning me that citron may be sharper in color. The yellows are hard to gauge, along w/the reds. I'll have to consider the swinginess factor, too. I am 2.5 days in and 4.5 days to go on the fast. I think I'll be good. I am turning my home office to function as a guest room as well, so that will occupy my time the next few days.
ReplyDeleteFabulousFloridaMommy - The yellows are tough.
Weab - The color sounds pretty on you. I thought it might work for me since my coloring is similar to the model in my avatar. I took a risk last week and ordered a tank in citrus lime. Curious to see what *that* will be like. There have been some great color combos mentioned on the board so I'm optimistic about the lime. I'll decide next week on the citron.
blumre - Mickey might cringe if he heard J Crew called "a national chain store." That made me laugh as I fancy they want to be considered...well, fancier. ;-)
I also used ship-2389 (I'm pulling that from memory, but I believe those were the numbers) on a $95 transaction and it worked for me. Here's to hoping I don't get screwed with all the fiasco's going on. This is my first time shopping at J.Crew.
ReplyDeleteAlexis: Its so true though! While they want to be a less expensive designer brand, they aren't! They have stores all over the country... true designers, for the most part DO NOT! They are a national chain and catalog store
ReplyDeleteweab and gigiofca: It sounds like the Citron colors work well with both of your coloring...I don't do well with the yellows and my coloring, except for the Honey Glaze. I think the Citron looks amazing with White...it's just hard to tell how bright each version of Citron is when ordering it off the web.
ReplyDeletelam: Good Luck! I hope everything with your order works out...keep us posted! :)
ReplyDelete"Are they worth what they earn?"
ReplyDeleteThat's debatable; depends on the company & the individual....I work in corporate now (not fashion, however, but I used to work in fashion as a designer) and I see high-level executives who earn six or seven figure salaries and their assistants do the majority of the work, yet do not get the credit or salary they deserve. I should know because I was one of them.
Half the time, these executives are spending the working day at yoga, pilates, the gym, getting massages, manicures, etc. while their assistants are back in the office typing, compiling, taking messages, sending messages, fielding calls, assembling marketing packages, etc., etc. Hope I don't sound bitter because I'm not. This is the God's honest truth because I have seen it with my own eyes. Half the time the people who earn these high salaries don't even know how to operate a copy machine. But I know, that why assistants are hired for. Still, the original question was, are they worth the salaries they are paid? Does the public really know what goes on behind the scenes? Not usually. The general public thinks all these brand name designers are the ones who actually do the work. Most of the times, they aren't - it's the designer working for the big name and their assistants.
Are the high paid executives worth what they earn? In some cases no and in some cases, possibly.
They get paid to lead the company. In that case, w/all the pressure they're under, they deserve it. Afterall, they lose sleep so that you ladies can sleep better knowing that you'll be well dressed in the morning!
ReplyDeleteLOL - I highly doubt they lose sleep. Maybe if their stocks fall, they might....LOL
ReplyDeleteLAM: Is this your first time shopping with J.Crew online or ever? If you never shopped at J.Crew, I think you will find that they have some really great items. Congrats on your purchase!!! :)
ReplyDeleteAnonymous at 12:48 PM: Thanks for sharing with us your perspective as someone with experience in the fashion world. I found it really interesting to hear your take on it. :)
The topic of salaries is a good one. What's someone worth? Think about sports figures and these two people could be considered under paid.
ReplyDeleteSo many of us make so far less it's hard to understand this level of salary. But then again I know I don't deal with the level of pressure or stress they do either.
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ReplyDeleteJCrew Guy In Canada: I thought the topic of salaries would be interesting too. :) And I think your comparison to sports figures is a good one.
ReplyDeleteI feel like some of these retailers do not value the right people. Yes, the executives are extremely important, but I personally LOVE Nordstrom's sale culture (Customer is the most important, then sales associates and down the line to CEO).
ReplyDeleteI worked for Bannana Republic as a sales associate while I was in college and I always felt that they (GAP, BR, etc) did not really value their customers and sales associates as much as they should.
The sales associates are their front line and if they are rude, unaccomadating or just do not believe in the product they are selling, all of the work that the executives have done will fall apart. I had co-workers that were bitter with management because of low pay, not getting the breaks that they were entitled to, etc. This truly showed in their interaction with clients and I feel brought down sales for the store. Although I felt the same way towards the management team, I truly loved that job and interacting with people (even the mean ones) and always led the sales team in highest items per transaction and highest dollar amount per transaction, but I had to FIGHT to make JUST $10 an hour !!
Ever since I had that job I have thought that ALL retail stores could do SO much better if they put their customers first and hired THE BEST people to give them THE BEST shopping experience. The big guys at J Crew should be making the big bucks, but maybe they should also have a bonus structure or something for the people who actually work face to face with their clients. As a consumer, I could care less who the head of a company is. I just want a nice shopping experience. I spend more money when there is someone friendly and helpful is pointing me towards something new to try on, etc. J Crew could use some help in this area. I do my shopping online for a reason! : )
To the citrus lime question, I purchased a daisy eyelet Collection tunic and am wearing it today. It works pretty well with my skin tone and hair.
ReplyDeleteI just found this blog today. I'll keep visiting.
Soigne: Welcome- We always love to hear from new Aficionadas! :)
ReplyDelete