That's $33 thousand, not million.
A proxy filing with the SEC Tuesday reveals that Richard Hayne - founder, chairman, president and CEO of Navy Yard-based Urban Outfitters Inc. - earned only $33,273 last year, reports WWD. However, this was a 7 percent increase from his previous year's pay of $31,015.
How is this possible? We break it down for you below.
Hayne's salary is $1 a year. He received a $5,000 holiday bonus in 2012, while the remainder of his salary came from "all other compensation." Unlike other executives within the company, the chief executive's bonus is tied directly to corporate performance. For Hayne to qualify for a bonus, company revenues have to reach the $2.83 billion mark. Urban Outfitters Inc. recorded $2.79 billion in revenue last year, just shy of the limit to activate additional compensation. So it stands that the last time Hayne collected a cash bonus was in 2010 when he received $420,000.
But in the world of corporate earnings, this is the real tale: Hayne's stake in Urban Outfitters is worth close to $1.1 billion. He's not interested in his annual compensation- what he really wants is for the retailer to grow, as in skyrocket in earnings.
Just last week, Nasty Gal founder Sophia Amoruso revealed in a New York Times profile that the retailer had recently contacted Amoruso regarding a potential acquisition. The move could be a lucrative opportunity for both parties - one that infuses Urban with an edgier, hip vibe. And cash bonuses.