What: Nordstrom Inc.'s CEO Erik Nordstrom's total compensation increased to USD 4.5 million in 2023.

Why it is important: This pay raise reflects efforts to stabilize and grow Nordstrom amid varying performance across its segments, particularly the success of the Nordstrom Rack off-price chain.

In 2023, Nordstrom Inc.'s CEO, Erik Nordstrom, received a 30.8% increase in total compensation, amounting to USD 4.5 million. This increase was mainly through stock and option awards, complementing his salary and incentive pay. The compensation details, shared in a proxy statement, highlight the financial strategies amidst operational challenges. Nordstrom Rack, the company’s off-price division, displayed significant improvement, which bolstered the company’s overall performance. The retailer is focusing on enhancing customer experience and merchandise assortment, aligning with broader industry trends towards digital integration and personalized shopping. As Nordstrom continues to evolve, the executive pay structure reflects its strategic efforts to fortify its market position and expand its consumer base.

Nordstrom CEO Erik Nordstrom’s Pay Increased to USD 4.5 Million in 2023