Wal-Mart's Lore Gets $244 Million in Pay Following Jet Deal
The bulk of his payout comes from shares tied to the merger
(Bloomberg) -- Wal-Mart Stores Inc. executive Marc Lore reaped an astronomical $243.9 million in compensation last year, fueled by shares he received as part of the sale of his company to the retail giant.
The package included restricted stock worth $236.3 million, which came as part of the buyout of his company, Jet.com, according to a regulatory filing Thursday. Most of those shares will vest monthly through September 2021 starting later this year. He also received about $7.55 million in salary, stock awards and perks.
The compensation puts Lore well ahead of his boss, Wal-Mart Chief Executive Officer Doug McMillon, and vaults him into the ranks of America’s top-paid executives. McMillon got a $22.4 million pay package, up from $19.8 million in the prior year.
The retailer acquired Jet last year in an effort to bolster its online sales and tapped founder Lore to be CEO of U.S. e-commerce operations of both entities. He’s revamped Wal-Mart’s shipping policies and discounted items that customers can pick up in stores, aiming to gain an edge on Amazon.com Inc. Online purchases jumped 29 percent for the quarter ending Jan. 31, the third consecutive period of gains.
Wal-Mart shares rose less than 1 percent in the most recent fiscal year, compared with an increase of more than 17 percent for the S&P 500 Index.
Lore owned 15.9 percent of Jet at the time of Wal-Mart’s buyout, giving him the right to a payout of about $477 million on the deal, according to the filing. The 45-year-old received $80 million following the close of the sale in September, and the rest will be paid out over the next five years. Wal-Mart’s board said in the filing that it doesn’t consider his restricted shares to be part of his compensation since they came as a result of the acquisition.
McMillon’s pay rose 13 percent from the prior year, in part thanks to a bigger annual bonus after the company beat targets for sales and operating income.
--With assistance from Alicia Ritcey
To contact the reporters on this story: Anders Melin in New York at amelin3@bloomberg.net, Lisa Du in New York at ldu31@bloomberg.net.
To contact the editors responsible for this story: Brandon Kochkodin at bkochkodin@bloomberg.net, Daniel Taub, Nick Turner