Business

Belk CEO Tim Belk sees 4 percent pay cut

The chief executive at Charlotte-based department chain Belk Inc. had a pay cut of about 4 percent last year, mostly because of a decrease in his stock awards, as the company posted another year of softer earnings.
The chief executive at Charlotte-based department chain Belk Inc. had a pay cut of about 4 percent last year, mostly because of a decrease in his stock awards, as the company posted another year of softer earnings. Staff Photographer

The chief executive at Charlotte-based department chain Belk Inc. had a pay cut of about 4 percent last year, mostly because of a decrease in his stock awards, as the company posted another year of softer earnings.

Tim Belk, 60, made just under $4 million for the fiscal year that ended Jan. 31, down from $4.1 million the prior year, according to a securities filing Thursday.

The retail chain said earlier this month it hired investment bank Goldman Sachs to help it explore a sale. Belk is the largest family-owned department store in the country and operates almost 300 stores across 16 states.

Belk’s pay consisted of a $1.1 million base salary, $1.7 million worth of stock awards, a $955,533 bonus and perks and other compensation totaling $209,906.

The company said the compensation for Belk and other executives is tied to certain performance metrics, which were “near the target levels.”

In 2014, Belk’s sales totaled $4.1 billion, a rise of 1.8 percent over the prior year. Sales at stores open at least a year rose 1.5 percent over the year, and online sales grew 43.3 percent.

But the company’s profits dipped. Belk said its earnings totaled $146 million for last fiscal year, a 7.8 percent drop from the year before. The company attributed the decline to Belk’s investments in “key strategic initiatives,” including e-commerce and remodeling stores.

The previous year, Belk’s profits had slipped 16 percent despite stronger sales, and CEO Belk saw a pay cut of 39 percent.

According to the proxy, Belk’s shareholder meeting will be held May 27 at 11 a.m. at the Mint Museum.

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