The president of Nordstrom Inc. received a pay package valued at nearly $4.3 million in 2010, up 44 percent from 2009, according to an analysis by The Associated Press.
Blake Nordstrom, 50, who joined the company in 1975 and has been president since 2000, received a base salary of $696,111. He received stock and option awards valued at $1.4 million when they were granted. The largest segment of his pay package comes from a performance-based bonus of $2.1 million, up 81 percent from 2009.
He received other compensation of $63,852, including a merchandise discount worth $38,828.
Department stores were hit hard by the recession as consumers hunted for bargains, but their results have improved as consumer spending slowly recovers. High-end department stores like Nordstrom have recovered more quickly than many other retailers.
For the year, Seattle-based Nordstrom's net income rose 39 percent, and its revenue rose almost 13 percent to $9.31 billion.
Its shares rose 13 percent during the year.
The Associated Press formula calculates an executive's total compensation during the last fiscal year by adding salary, bonuses, perks, above-market interest the company pays on deferred compensation and the estimated value of stock and stock options awarded during the year. The AP formula does not count changes in the present value of pension benefits. That makes the AP total slightly different in most cases from the total reported by companies to the Securities and Exchange Commission.
The value that a company assigned to an executive's stock and option awards for 2010 was the present value of what the company expected the awards to be worth to the executive over time. Companies use one of several formulas to calculate that value. However, the number is just an estimate, and what an executive ultimately receives will depend on the performance of the company's stock in the years after the awards are granted. Most stock compensation programs require an executive to wait a specified amount of time to receive shares or exercise options.