Wal-Mart Stores Inc. executive Marc Lore reaped an astronomical $243.9 million in compensation last year, fuelled 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% for the quarter ending Jan. 31, the third consecutive period of gains.
Wal-Mart shares rose less than 1% in the most recent fiscal year, compared with an increase of more than 17% for the S&P 500 Index.
Lore owned 15.9% 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. He 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% from the prior year, in part thanks to a bigger annual bonus after the company beat targets for sales and operating income.