SHELLY IBACH | SELECT COMFORT CORP.
President and CEO
Total compensation: $1,753,933 for the year ended Dec. 31, 2015
Salary: $779,231
Nonequity incentive pay: $188,462
Other compensation: $12,700
Exercised stock options: $310,208
Value realized on vesting shares: $463,332
New stock options: 29,480
Total 2015 shareholder return: -20.8 percent
Note: Last March, Ibach received a 14. 3 percent increase to her base salary rate of $700,000. The compensation committee had decided that her annual salary had fallen significantly below the peer group median.
The peer group includes furniture and bed makers Ethan Allen Interiors Inc., La-Z-Boy Inc., Mattress Firm Holding Inc. and Tempur Sealy International Inc., according to the proxy. Among others, it also includes footwear maker Steven Madden Ltd. and specialty retailers Columbia Sportswear Inc. and Vitamin Shoppe Inc.
Despite the salary increase, Ibach's overall compensation for 2015 fell 14 percent because she earned a smaller annual incentive bonus than in 2014. Executives earned a portion of their total bonus based on the company's first-half performance, but the adjusted EBITDA number used for bonus calculations was lower than the threshold by the end of the year.
Ibach did exercise some stock options in 2015, and some performance-based restricted stock awards that were granted in 2013 vested in 2015. However, the value realized from the 2013 award was 20 percent of the targeted amount because Select Comfort's 2015 revenue of $1.2 billion was below the targeted level and operating margin was below the threshold level for further awards.
Patrick Kennedy
