Millard “Mickey” Drexler traded up while stepping down.
The famed merchant handed over the chief executive officer reins of J. Crew Group to West Elm veteran James Brett on Monday, but remained chairman and signed a new contract that gave him a nice pay raise, according to a filing with the Securities and Exchange Commission.
As ceo and chairman last year, Drexler received a $200,000 salary, a $600,000 bonus and other compensation valued at $39,527.
But his new contract as chairman, technically of J. Crew’s parent Chinos Holdings Inc., lasts until the end of 2018 and gives him cash compensation of $1.4 million and will also pay Drexler Ventures LLC $1 million on his behalf.
The payments are doled out in the regular payroll cycle.
Drexler holds 20,068,262 options to purchase Chinos stock, which were accelerated and vested in full and will remain outstanding and eligible to be exercised.
He will also continue to receive some perks, including lifetime discounts for him and his immediate family on apparel and accessories and office space for his assistant until he sets up a new space, or through the end of September.
Drexler is bound by “a perpetual confidentiality restriction,” restrictions on hiring J. Crew employees and has a non-compete agreement that lasts for one year following the end of his contract, which “restricts him from association with any entity actively engaged in the retail apparel business in a geographic area in which the company or any of its subsidiaries or affiliates engages in such business and has revenue of at least $100 million per year.”
Don’t expect Drexler, who turns 73 in August, to just sit around though.
In June, when his departure as ceo was first announced, he told WWD: “I am a young-old guy. I have ‘shpilkes.’ I am always in a state of impatience. I have been here for 14 years. I thought it was time to move on and lessen up on the day-to-day. The [succession] plan had been in motion for some time. I told the board a year ago I was ready to step down and move to chairman. We worked together looking for the right talent to lead the next phase of growth….When we found Jim we knew had to move quickly.”
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