American Apparel Inc. chief executive officer Dov Charney saw the cash portion of his 2012 compensation grow nearly a third to $2 million as the Los Angeles-based vertical retailer boosted sales and reduced losses and inventories last year.
The fate of his stock awards, however, will rest with shareholders until the annual meeting this summer.
Charney, chairman, ceo and a director of the firm, pulled in $800,000 in salary last year, up 6.7 percent from $750,000 in 2011, and qualified for $1.2 million in a cash bonus, 59.2 percent more than the $754,000 granted in the prior year.
Gains in total compensation were less modest. It grew to $14.5 million, a 24.9 percent increase over the $11.6 million reported for 2011.
The largest share of that money comes from stock awards totaling $12.5 million, a 23.7 percent increase from the $10.1 million reported in 2011, and many things will have to go right for Charney to receive those shares, which are reported at “grant date fair value” to the Securities and Exchange Commission.
The largest part of that total, $6.9 million, would only be received if specified targets for earnings before interest, taxes, depreciation and amortization are achieved, and the remaining $5.6 million only if shares reached — and for 30 consecutive trading days held — prices in excess of $3.25, $4.25 and $5.25 for periods ending on April 15 of 2014, 2015 and 2016.
Still, they remain well below those specified in Charney’s employment agreement, which was amended in October to extend the periods for performance measurement and reduce the number of days required to meet the stock price provisions. Shareholders will vote on the amendments at the company’s annual meeting, to be held June 25 in New York.
The numbers were contained in AA’s preliminary proxy, filed with the SEC on Tuesday. The cash portion of Charney’s bonus was based on sales, EBITDA, debt, inventory and cost per piece.
It also listed Charney as the owner of 45.8 million shares, representing 43 percent of the common shares outstanding, with Lion Capital and a group of Canadian investors led by private investor Michael Serruya each holding 20 percent of shares.
For the year, American Apparel reduced its net loss to $37.3 million from $39.3 million in 2011 as adjusted EBITDA more than doubled to $36.6 million. Sales rose 12.8 percent to $617.3 million.
Long-term debt stood at $110 million at year’s end, up from $97.1 million at the close of 2011. Additionally, current liabilities include $60.6 million in revolving credit facilities and the current portion of long-term debt, up from $50.4 million a year ago.
There'll be no rest for those headed to Europe for men's, as Paris just closed the gap with Milan. According to a provisional calendar released by the Chambre Syndicale, Paris Men's Week will now open a day earlier on January 16. See new highlights on the official lineup on WWD.com. #wwdnews #wwdfashion (📷: @kukukuba)
BREAKING: Jonathan Saunders is leaving @DVF. The designer has resigned from his position as chief creative officer of Diane von Furstenberg, the company said in a statement on Friday. At the time of his hire, von Furstenberg said Saunders’ arrival symbolized and facilitated her stepping back from the day-to-day duties that occupy the work of a full-time creative director. The British designer joined DVF in May 2016 and was in charge of all product categories. #wwdnews
For @versace_official’s spring ad campaign, the brand emphasized the archival prints from the spring tribute collection dedicated to the late Gianni Versace. Closing out the show were five of Gianni’s favorite models: Cindy, Naomi, Carla, Helena, and Claudia. Bowing on December 18, the new campaign is yet another tribute to supermodel-dom as the images by Steven Meisel are fronted by @iamnaomicampbell, @cturlington, @gisele and more. #wwdfashion
Four-time Oscar-nominated actress Annette Bening has been waiting 20 years to play Gloria Graham in "Film Stars Don't Die in Liverpool," which will be released on December 29. The movie about Graham – a Hollywood star known for her controversial relationship with a younger Englishman named Peter Turner – is based off a memoir Turned wrote. "She felt vulnerable to him, because she loved him, she really did love him. And anyone that we really truly are in love with, we re vulnerable to in a very deep way," said Bening. Read our full interview with the modern icon of an actress on WWD.com. #wwdeye (📷: @ninebagatelles; Styled by @cristinaehrlich)
The crisp white button down: a staple that can be dressed up or down and accessorized throughout the decades. Here, on a Art Basel-goer in 2017 on the left and on the iconic Audrey Hepburn in “Roman Holiday” in 1953 on the right. #tbt #wwdfashion (📷: Andrew Morales)
Known for her work with @victoriassecret, 25-year-old model @georgiafowler is raising her profile in Hollywood. Fowler stars in @vincecamuto’s holiday campaign, which launched in partnership with “Pitch Perfect 3.” “Almost every shoot with Vince Camuto, I’ve had to face a fear…It was definitely a challenge. I’m so grateful for it, though. I’ve always wanted to be a pop star, so that was the perfect chance,” Fowler said. Head to WWD.com to read about Fowler’s experience modeling, including at the #VSFashionShow, and her relationship with Nick Jonas. #wwdeye (📷: @jilliansollazzo)
EXCLUSIVE: Huda Kattan just became the first beauty influencer to land a major beauty deal. Kattan's business, @hudabeauty, has received a minority investment from private equity firm TSG Consumer Partners. The brand, which industry sources say is on track to do $200 million in retail sales for 2017, will receive support on product, retail and geographic expansion through the deal. Get all the details on the deal and read @_a_collins' interview with Kattan on WWD.com. Link in bio. (📷: @jgreenery) #wwdbeauty #wwdnews
Peruvian model @juanaburga_official – who is known for walking the runways of @rodarte, @viviennewestwood and @torybuch – is making the move to the big screen with drama “Los Últimos.” The film premiered in Argentina in November and arrives in the U.S. and Europe in 2018. On making the switch from modeling to acting, Burga told WWD: “It’s a completely different thing – a lot of people think it’s similar or try to connect things, especially like getting used to the camera or being looked at all the time or playing these different characrers, but film is a completely different story.” #wwdeye (📷: @jgreenery)
London’s newly opened @designmuseum will look back on the life and work of Azzedine Alaïa in a show that the designer helped to curate before he died of heart failure last month. The retrospective, which Alaïa had worked on with Mark Wilson, chief curator of the @groningermuseum, will look at the impact of his work worldwide. The show, “Azzedine Alaïa: The Couturier,” will run from May 10 to October 7. Read more about the exhibit on WWD.com #wwdnews #wwdfashion (📷: @zefashioninsider)