When Steve Rendle retired as president, chief govt officer and chairman of VF Corp. final yr — which the corporate described as “by mutual settlement with the board” — he left some potential massive fairness payouts on the desk.
Rendle forfeited inventory and choice awards valued at $9.9 million when he left in December, based on VF’s proxy assertion, filed with the Securities and Change Fee on Monday. Rendle did obtain a wage of $943,562 and different compensation of $624,475 — together with $47,957 to cowl paid time without work not taken and $456,438 associated to a Protecting Covenants Settlement he signed. Underneath the settlement, Rendle agreed to not compete with VF for one yr following his Dec. 2 retirement.
Inventory and choices are usually the largest chunk of the pay CEOs see, however it is usually their most theoretical compensation because the quantity of worth they really see relies on how the corporate and its inventory performs.
And VF goes by means of a troublesome time proper now. Its inventory is down almost 60 p.c over the previous yr after the corporate struggled with Vans, repeatedly reduce its outlook, wrote down the worth of its Supreme enterprise by $735 million and in the end trimmed its dividend cost.
Now the corporate, mum or dad additionally to The North Face and Timberland, is being led by interim president and CEO Benno Dorer, the previous Clorox Co. chief and longtime board member.
In his new function, Dorer acquired a wage of $427,397, inventory awards valued at $2 million and different compensation of $610,168, as of the tip of the fiscal yr on April 1.
In Could, the interim CEO instructed analysts: “Fiscal ‘24 can be a yr of transition and progress positioning us to speed up worthwhile development in fiscal yr ‘25 and past. We now have an appropriately balanced plan in place for this fiscal yr contemplating our organizational transition. We’ll present progress in a number of areas with smart income projections, elevated advertising funding and a pointy concentrate on margin, resulting in stable working revenue development and money move era.”