J.Crew Gives $1 Million Bonus to Creative Director
J.Crew has rewarded
the hard work of its creative director Jenna Lyons with a $1 million bonus.
The bonus was reported on a routine filing with the SEC. Jenna has been credited with increasing sales and the profile of J. Crew. Sales were so good in October that the company has nearly doubled its outlook for fiscal third-quarter earnings to between 54 and 59 cents a share, up from 30 to 33 cents a share.
The bonus is intended to keep Ms. Lyons at J. Crew for the next several years. The terms specify that she must repay the bonus in full if she leaves within two years or repay half of it if she leaves after that but within four years. The company declined to comment.
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Neither Ms. Lyons nor any of the company's other four top executives received bonuses last year. Ms. Lyons received a compensation package, including stock awards and option awards, of $1.9 million last year, according to an April proxy filing.
Ms. Lyons joined the company in 1990 as an assistant designer, following an internship with Donna Karan. She became its creative director in December 2007 and has helped steer the brand to new levels of popularity. It has become a favorite with the White House, including specially designed clothes for first daughters Malia and Sasha Obama for their father's inauguration. J. Crew is also widely worn by celebrities, including Katherine Heigl.
The J.Crew website features "Jenna's Picks" with items that she recommends to customers. Ann Taylor was so taken with the concept that it now has a "Lisa Loves" feature on its website, which features the picks of its head designer Lisa Axelson.
Jenna Lyons has earned her bonus. It's great to see female executives being rewarded for their achievements. But it's pretty cheap to make her give it back if she leaves the company. She earned the bonus and shareholders are happy.
