PVH Corp. has set the stage for the next generation of leadership of its Calvin Klein, Tommy Hilfiger and international operations.
The company said in a filing with the Securities and Exchange Commission that Fred Gehring, chief executive officer of both Tommy Hilfiger and international operations, and Tom Murry, ceo of Calvin Klein Inc., have signed new employment contracts detailing how they will begin to transition out of their current full-time ceo roles and into new part-time capacities as executive chairmen.
Gehring will begin the process no earlier than one year and no more than three years after the effective date of July 1 while Murry is scheduled to change his role in mid-2016.
Gehring, 58, and Murray, 62, will become executive chairmen of PVH Europe and Calvin Klein Inc., respectively, upon confirmation by PVH chairman and ceo Emanuel Chirico that their successors are ready to assume their duties. The two executives subsequently will have their hours, salaries and bonus opportunities cut in half. Murry’s base salary is currently $1 million, and Gehring’s 950,000 euros, or about $1.3 million at current exchange.
Gehring has been affiliated with Tommy Hilfiger since becoming ceo of the company’s European licensee in 1997. He remained in that role following the licensee’s acquisition by Tommy Hilfiger and became ceo of the firm in 2006. He retained the ceo spot after PVH’s 2010 acquisition of the brand and subsequently added responsibility for PVH’s European and international operations.
PVH noted in the SEC filing that Gehring is “expected to perform an advisory role on the future plans to gradually integrate PVH’s Tommy Hilfiger and Calvin Klein business operations in Asia and South America.”
Murry, formerly the president of Tahari Ltd., joined Calvin Klein Inc. in 1996, became president and chief operating officer in 1999 and was promoted to president and ceo in 2008. PVH acquired Calvin Klein in 2003.
Integration has been a prevalent theme since the February acquisition of The Warnaco Group Inc. for $2.9 billion as PVH has been challenged both to improve the Calvin Klein Jeans business and to upgrade that business and others previously owned by Warnaco.
“This year we’ve really characterized, from a financial point of view, 2013 as a transition year,” Chirico said at the company’s annual meeting last month. “We are stabilizing the Warnaco businesses, integrating those Warnaco businesses, beginning to put them on our systems and operating platform.”