Reprising our October cover story, “CEOs Who Should Lose Their Jobs,” we proudly inaugurate this monthly profile of corner-office laggards (with help from corporate governance specialists Glass, Lewis & Co. LLC).
CEO: William Dillard II
Tenure: 5 years
Total Shareholder Return*: -46.5%
Peer Index Return*: 71.1%
S&P 500 Index Return*: 5.1%
Total Pay**: $8.0 million
As the beaten-down department-store sector begins to improve, Little Rock, Arkansas-based Dillard’s is still in the dumps. It missed its second quarter earnings forecast, and same-store and total sales are down through October 4, exacerbated by excess inventory and dowdy duds. Dillard, son of founder William Dillard, has been absent from recent company conference calls, infuriating some who say it’s time to sell. Four of the 12 board members are Dillard siblings, 3 of whom together own 99.4% of the board-controlling shares, making the idea of an independent board something of a joke. Dillard’s wouldn’t comment.
*Data from Glass, Lewis & Co. and FactSet Research Systems for five years ending October 6, 2003. Peer index return includes companies with the same SIC code. Split-adjusted, includes dividend readjustment.
**Total compensation includes salary, bonus, stock-option exercises, and all other long-term compensation for the past five years, excepting the value of options granted but not exercised.