Michael Kors Holdings Limited just filed its annual proxy statement, which details the salary information of its key executives. In 2022, the company's CEO made Fiscal 2022 Decisions.
The table is included below:
Program < /td> | | | Fiscal 2022 Decisions | | | Rationale |
Base Salary | | | CEO, CFO / COO and SVP, Global Operations continued to have partial base salary reduction for Fiscal 2022 CEO base salary at 90% of Fiscal 2020 levels CFO / COO and SVP, Global Operations received a 4.2% base salary merit increase as part of annual review cycle but still had base salary at 93.8% of Fiscal 2020 levels | | | • Align with focus on managing costs • Begin to re-align leaders with pre-COVID-19 base salary levels as pandemic stabilized • Retain leaders in critical leadership roles |
| As part of the annual review cycle, SVP, General Counsel and Chief Sustainability Officer received a 10% base salary merit increase as compared to Fiscal 2020 levels for Fiscal 2022 | | | • Align target total cash compensation with similar positions in our executive compensation peer group • Retain leaders in critical leadership roles | ||
Annual Cash Incentive Program | | | Reinstated full year annual cash incentive program with performance hurdles at threshold, target and maximum aligned with our Company’s operating budget Payout based on executive’s base salary as of the last day of Fiscal 2022, which reflects a base salary below Fiscal 2020 levels for CEO, CFO / COO and SVP, Global Operations | | | • Reflects improved ability to more accurately forecast for the full fiscal year and reduced pressure to lower operating costs in light of evidence of recovery trends within our business |
| Eliminated individual performance component Performance based 50% on free cash flow, 30% on gross margin and 20% on SG&A for all NEOs | | | • Align NEO annual cash incentive with Company financial performance • Uniformly encourage our executive officers to increase cash flow, drive profitability and manage expenses in uncertain macroeconomic environment | ||
LTI Awards | | | June 2021 LTI awards (granted in Fiscal 2022 for performance in Fiscal 2021) were granted 100% in Restricted Share Units (RSUs), rather than 50% RSUs and 50% Performance-Based RSUs (PRSUs); RSUs vest over three years | | | • Lack of visibility in June 2021 into future financial performance given unpredictability surrounding the pandemic making it difficult to set informed, multi-year performance targets • Drive retention and engagement through a period of heightened uncertainty |
| Consistent with our expectation that the change in pay mix would be a temporary action due to the COVID-19 pandemic, we reinstated our standard target equity mix for our June 2022 LTI awards (granted in Fiscal 2023 for performance in Fiscal 2022) comprised of 50% RSUs (vesting over three years) and 50% Performance-Based RSUs (PRSUs) Instituted three-year (as opposed to two-year) performance period and expanded the maximum payout range from 150% of target under our prior PRSU program to 200% of target | | | • Encourage executives to achieve multi-year, long-term performance goals • Recognize economic recovery trends and ability to more accurately forecast long-term goals • Establish a clear, rigorous performance standard while also appropriately rewarding executive's for exceptional performance • Motivate and retain executives • Share ownership further aligns the interest of our executives with our the interests of our shareholders |
The above information was disclosed in a filing to the SEC. To see the filing, click here.
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