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There\u2019s likely no shortage of people who would pay to work for Rihanna, a global superstar and the wealthiest female musical artist in the world. Victoria\u2019s Secret just found out how expensive it is to poach a chief executive from one of her companies.<\/p>\n
On Wednesday, America\u2019s largest seller of lingerie announced<\/a> it had hired Hillary Super\u2014the CEO of Savage X<\/a> Fenty, the singer-songwriter\u2019s body-positive lingerie brand\u2014to be its new CEO, effective Sept. 9. According to her employment agreement<\/a>, Super\u2019s compensation package could exceed $18 million. She will receive a base salary of $1.2 million on top of a $1 million signing bonus, and she\u2019s eligible for an annual cash bonus that could range as high as $2.1 million to $2.4 million.<\/p>\n The bulk of the compensation comes in the form of equity, as is customary for most public company CEOs. Super, also formerly the Global CEO of bohemian-inspired retail fashion brand Anthropologie, will receive a one-time stock award valued at $5.75 million that will fully vest in three years. In 2025, she\u2019ll receive an annual equity grant valued at $7.7 million. That brings her target annual pay to approximately $11 million, a Victoria\u2019s Secret spokesperson confirmed. With the stock grant, Super\u2019s offer to lead the lingerie, clothing, and beauty retailer is nearly $18 million. To boot, she\u2019ll be able to work from home some of the time. <\/p>\n Super is required to relocate from the Los Angeles area to New York for the role, per the agreement<\/a>. She\u2019ll also need to frequently travel to Columbus, Ohio, with the company based in nearby Reynoldsburg.<\/p>\n \u201c[Victoria\u2019s Secret] welcomes Hillary as our new CEO to power the business\u2019 next chapter and deliver the foremost tenet of our transformation strategy: accelerating growth in our core business in North America,\u201d chairwoman Donna James said in a press release<\/a> Wednesday. \u201cWe are particularly impressed with her merchant leadership capabilities paired with an operator\u2019s discipline and bias for driving value creation.\u201d<\/p>\n Super\u2019s lawyer did not immediately respond to requests for comment.<\/p>\n Super replaces Martin Waters, who has led Victoria\u2019s Secret since it was spun off<\/a> from its former parent company, L Brands<\/a>, in 2021. That move came a year after private equity firm Sycamore Partners sued to get out of a $525 million sale<\/a> during the coronavirus pandemic.<\/p>\n Under Waters, the company has tried to reinvent itself<\/a> as consumers increasingly prioritize comfort over sex appeal and demand more options for different body types. The transition hasn\u2019t been easy.<\/p>\n Shortly after Victoria\u2019s Secret IPO in August 2021, the stock hit an all-time high of $74.77. Amidst flagging sales in North America and declining revenue, however, shares then sunk almost 75% during the rest of Waters\u2019 tenure as the company shed over $5.3 billion in market cap. The current market cap is nearly $2 billion.<\/p>\n Nonetheless, Waters could receive a substantial financial windfall on the way out. Victoria\u2019s Secret said Waters, who is staying with the company in an advisory role until the end of August, is entitled to the severance benefits provided under his employment agreement<\/a>.<\/p>\n According to the company\u2019s latest proxy statement<\/a>, that package is valued at roughly $11 million, including $6.3 million in previously unvested stock awards. A Victoria Secret\u2019s spokesperson clarified that number is based on targets, not actual performance.<\/p>\n Waters did not receive a performance bonus in 2023, according to the proxy statement. \u00a0His annual compensation was valued at $10.9 million, compared to $12.5 million and $12.9 million in the previous two years, respectively.<\/p>\n On Wednesday, James thanked Waters, previously a longtime executive at L Brands, for his contributions to Victoria\u2019s Secret.<\/p>\n \u201cHe has established a foundation for [Victoria\u2019s Secret] to enter its next chapter, building an inclusive culture, growing our digital platform capabilities, enhancing the customer experience online and in stores, repositioning our international business for growth, and successfully executing our multi-year separation from our former parent company,\u201d she said in the press release.<\/p>\n Super enters the role as the company experiences financial momentum. While announcing her appointment, the company also released encouraging preliminary results<\/a> for second quarter earnings.<\/p>\n The company said operating income should fall within the $57-$62 million range, up from $30-$45 million in previous guidance. Diluted earnings per share is expected to be between $0.34-$0.39, compared to the previous forecast of $0.05-$0.20.<\/p>\n Shares jumped 16% Wednesday on news of Super\u2019s hire and those results, rising another 10% on Thursday. The stock held relatively steady as of midday Friday, trading above the $24 mark.<\/p>\n<\/div>\nA new era for Victoria\u2019s Secret \u00a0<\/h2>\n