America's top retailers in trouble
Sears CEO Eddie Lampert only gets a salary of $1 a year to run the troubled retailer. But he does get a stock bonus, and for 2017 that bonus increased by $850,000, giving him a 24% raise.
Lampert's compensation package was reported in a company filing Thursday. The stock bonus he received came as part of a 2013 stock plan.
He would have gotten an even bigger bump if the company's financial troubles had not sent the value of those share plunging. The 606,000 shares he received during the course of the year was more than double the 265,000 shares he received during 2016. But the value of Sears shares tumbled more than 60% during the course of last year.
The financial results at Sears were pretty rough as well. Sales plunged by $5.4 billion, or 24%, during its fiscal year. Even excluding the impact of closing 428 stores during the year, sales at the remaining stores tumbled 16%. While it posted a rare, narrow profit in the fourth quarter, the company lost $383 million over the course of the full year. That was an improvement from the $2.2 billion loss reported a year earlier, though.
Sears has now lost $10.8 billion since it's last annual profit in 2010.
Related: Here's what's killing Sears
Lampert bought Sears and merged it with Kmart to form Sears Holdings in a deal that closed in 2005. Today he owns 54% of its outstanding stock. His straight salary has been $1 since he assumed the CEO title in 2013, but that was also when the stock bonus plan for him was set up.
CNNMoney (New York) First published March 29, 2018: 12:04 PM ET
FAQs
Sears CEO Eddie Lampert only gets a salary of $1 a year to run the troubled retailer. But he does get a stock bonus, and for 2017 that bonus increased by $850,000, giving him a 24% raise. Lampert's compensation package was reported in a company filing Thursday.
Who is the billionaire who bought Sears? ›
Lampert took control of Sears Holdings in 2005, after merging it with the Kmart discount chain. The hedge fund manager struggled for years to stem the losses of the company that had pioneered mail-order catalog shopping but never found its footing in the internet era.
What is Eddie Lampert net worth? ›
Who was Sears' biggest competitor? ›
Key Takeaways
The company's biggest competitors to date have been Walmart and Amazon. Other rivals include Macy's, JC Penney, Home Depot, Lowe's, and Best Buy. Sears Holdings spun off and sold many of its business units and brand names.
What is the net worth of the owner of Sears? ›
As of October 2021, his net worth was estimated at US$2 billion.
How much money did Eddie Lampert lose on Sears? ›
Including the gains and losses on the major spin-offs, dividends, and interest income, it appears that loss was narrowed to about $624 million. Adding back the $2 billion in gains from hedge fund fees would give Lampert a net profit of approximately $1.38 billion.
Who owns the most Sears stock? ›
Top Shareholders
| Holder | # of Shares | Type |
|---|
| Edward S Lampert | 46,162,515 | Insider |
| Esl Investments, Inc. | 23,513,058 | Insider |
| Sears Holdings Corp | 11,962,391 | Insider |
| Thomas J Tisch | 1,752,911 | Insider |
6 more rowsMost of those profits came from performance fees ESL investors paid to Lampert on his Sears and Kmart investments. Saunders' take is that Lampert, as a big lender to Sears, wants to keep the business going to generate more cash -- money that would help pay down debts owed to his other business interests.
Why did Sears fail? ›
Increased competition with other big-box retailers and the rise of Amazon and online shopping took a bite out of Sears' profits. Within the company, tensions were brewing between lower-level management, employees, and Eddie Lampert.
Where is Sears headquarters? ›
Sears is a retailer that sells a wide range of products, including appliances, tools, home goods, electronics, and clothing. Some of the best selling products made by Sears include: Kenmore appliances: Sears is known for its Kenmore brand of appliances, including refrigerators, stoves, and washing machines.
What did Sears used to be called? ›
He returned to Chicago in 1892 and established a new mail-order firm, again selling watches and jewelry, with Roebuck as his partner, operating as the A. C. Roebuck watch company. On September 16, 1893, they renamed the company Sears, Roebuck, and Co. and began to diversify the product lines offered in their catalogs.
What company owns Sears now? ›
Key Takeaways. Sears Holding Company, owned by the parent company Transformco, has a storied past dating back to 1886.
Who was the man who destroyed Sears? ›
Eddie Lampert not only ran the company; he was also its largest creditor and the guy who sold major Sears assets to … Eddie Lampert. By now, Prospect readers probably know the basic story of the demise of Sears.
How many houses did Sears sell? ›
The kits were immediately popular: Between 1908 and 1940, when the program phased out after the Great Depression, Sears sold as many as 75,000 homes.
What real estate company did Sears own? ›
Coldwell Banker Real Estate Group. Founded in 1906, Coldwell Banker was acquired by Sears in 1981 as part of the retailer's diversification drive. But just more than a decade later, in 1993, Sears sold Caldwell Banker to California investment company The Fremont Group for $230 million. Craftsman tools.
Who owns Sears now? ›
Sears Holdings Corporation is now owned by ESL Investments and Transform SR Brands LLC, and is referred to as “New Sears.” This all follows Transformco's founder Eddie Lampert's supreme court case regarding Sears.
What did Richard Sears do with his money? ›
With his $5,000 profit, Sears started a mail-order watch business in Minneapolis in 1886, under the name of R.W. Sears Watch Company. Within a year he had hired Alvah C. Roebuck as a watch repairman and moved his business to Chicago.
Does Eddie Lampert still own Sears? ›
Lampert's history with the retailer began nearly 20 years ago as an investor, with stints as CEO and board chair. He is now a majority owner of what's left of it after its bankruptcy filing in 2018. His hedge fund, ESL Investments, and Cyrus Capital Partners are among lenders to Sears Holdings Corp.
