Executive pay slipped at American Eagle Outfitters Inc. last 12 months as top leaders received no incentive pay, but Jay Schottenstein, executive chairman and chief executive officer, said the corporate successfully pivoted in a tricky environment and has loads of opportunities ahead. 

“Fiscal 2022 was one other dynamic 12 months,” said Schottenstein to shareholders in a letter filed to regulators as a part of the corporate’s annual proxy statement. 

“Consumers were experiencing rising inflation and better rates of interest,” he said. “At the identical time, we continued to navigate supply chain disruptions, which drove elevated costs and product delays.…We pivoted swiftly to regulate inventory, seek efficiencies and maximize productivity. Ultimately, this drove a meaningful improvement in operating income and free money flow within the second half of fiscal 2022, enabling us to finish the 12 months in a healthy financial position.”

For the complete 12 months, the corporate’s revenues were down barely at just below $5 billion while gross profits fell 12 percent to $1.7 billion and net income slipped to $125.1 million.

The second-half rebound, nonetheless, wasn’t enough to trigger incentive payments for top executives. 

Schottenstein saw his total pay package fall 34.3 percent to $9.8 million from $14.9 million in 2021, when the CEO received $5.9 million in incentive compensation. 

The overwhelming majority of the CEO’s pay last 12 months got here in the shape of stock and option awards, which were valued at $7.8 million, but are depending on the corporate’s stock price — tying the chief’s pay to the portfolios of shareholders. 

Jennifer Foyle, president and executive creative officer for American Eagle and Aerie, saw her pay decline 38.2 percent to $5.4 million, including stock and options valued at $4 million. 

While the environment remains to be tricky, Schottenstein said the corporate is prepared for what’s ahead. 

“Looking ahead, I see no shortage of opportunities for our company,” the CEO said. “We’ve got been battle-tested in some ways over the past several years and have entered fiscal 2023 more agile and disciplined.”