PetMeds treats its CEO to a hefty pay raise

PetMed Express Inc., which operates 1800Petmeds.com, is giving president and CEO Menderes Akdag a hefty pay raise.

Over the next three years Akdag will receive an annual base pay of $450,000 and an additional 90,000 shares of PetMed common stock.

Akdag’s new annual salary is an increase of 80% over the $250,000 Akdag earned as a base in 2004 and 2005 and 123% more than he earned in 2004, according to PetMed’s latest proxy statement. Akdag has been president of PetMed, No. 110 in the Internet Retailer Top 500 Guide, since 2001 when his initial annual salary was $200,000.

In recent years, PetMeds has seen substantial gains to both its top and bottom line. In fiscal 2006, PetMeds posted net income of $12.1 million on revenue of $137.6 million vs. net income of $8 million on sales of $108.3 million in fiscal 2005. Web sales rose year-over-year to $72.4 million in FY 2006 from $55.8 million in FY 2005.

About two-thirds of all sales are generated online, the company says.