Compensation Trends at Hooker Furnishings Corporation.

Over recent years, the compensation landscape at Hooker Furnishings Corporation (NASDAQ: HOFT) has exhibited noteworthy trends amidst the company's fluctuating stock performance and industry challenges. As a prominent player in the household furniture industry, Hooker Furnishings has navigated the complexities of executive compensation amidst evolving market conditions and strategic realignments.


In 2019, Paul B. Toms Jr., then Chairman and CEO, topped the compensation chart with a total package of $1,539,886. This package comprised a base salary of $415,000, a substantial stock award of $249,000, and incentive plan compensation of $289,463.1 By 2020, his total compensation rose slightly to $1,565,575, with a salary increase to $444,167 and elevated stock awards, yet no incentive plan compensation that year.2 These figures reflect the corporation's ongoing emphasis on aligning executive pay with shareholder interests, despite the absence of bonuses during these years.

The year 2022 saw a marked shift with D. Lee Boone, President of the Home Meridian segment, receiving notable total compensation of $728,779. This package included a substantial stock award of $270,000 but also highlighted significant 'all other compensation,' amounting to $245,189, likely reflecting specific incentives tied to operational priorities or relocation.3 In 2023, Tod R. Phelps, Chief Information Officer and Sr. VP - Operations, earned a total compensation of $482,464, marked by a base salary of $291,667 and stock awards amounting to $180,000.4 This pattern underscores the company's strategic emphasis on rewarding stock awards over cash bonuses.

Most recently, in 2024, Anne J. Smith, serving as CAO, Sr. VP Administration, and President-Domestic Upholstery, received total compensation of $596,339. This figure included a base salary of $330,000 and stock awards worth $198,000, further reflecting the company's adherence to stock-based compensation as a core component of executive pay.5 This consistent inclusion of stock awards indicates a sustained effort by Hooker Furnishings to align management incentives with company performance and shareholder value.

The backdrop of these compensation changes is Hooker Furnishings’ current market performance, with the stock price at $16.53, showcasing a slight decline in recent trading.6 At its current market capitalization of approximately $177 million, the company faces challenges, highlighted by an earnings per share (EPS) standing at -$0.91, reflecting broader industry pressures and operational hurdles in a competitive landscape. The strategic design of compensation packages has remained an essential tool for retaining leadership talent and steering corporate objectives in uncertain times.

Despite these challenges, HOFT continues to focus on robust executive pay structures, linking leadership rewards closely to stock performance while navigating the intricate dynamics of the household furniture market.

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1. Securities and Exchange Commission. "Hooker Furnishings Corporation, 2019 Compensation." Retrieved from [SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1077688/000118518521000598/0001185185-21-000598-index.htm).

2. Securities and Exchange Commission. "Hooker Furnishings Corporation, 2020 Compensation." Retrieved from [SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1077688/000118518520000578/0001185185-20-000578-index.htm).

3. Securities and Exchange Commission. "Hooker Furnishings Corporation, 2022 Compensation." Retrieved from [SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1077688/000118518522000568/0001185185-22-000568-index.htm).

4. Securities and Exchange Commission. "Hooker Furnishings Corporation, 2023 Compensation." Retrieved from [SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1077688/000118518523000442/0001185185-23-000442-index.htm).

5. Securities and Exchange Commission. "Hooker Furnishings Corporation, 2024 Compensation." Retrieved from [SEC EDGAR](https://www.sec.gov/Archives/edgar/data/1077688/000118518524000462/0001185185-24-000462-index.htm).

6. NASDAQ Stock Market. "Hooker Furnishings Corporation Stock Quote." Data snapshot as of late 2024.