VF Corp.’s chief executive officer has had a busy time overseeing the spin-off of its jeans and outlet business, which was completed at the end of May, but he has been compensated accordingly.
Steve Rendle saw his pay packet balloon to $17.8 million in its fiscal year 2019, up from just $4.9 million in 2018, according to filings with the Securities and Exchange Commission. The huge leap is partly down to VF making changes to its fiscal year, resulting in the 2018 period representing only three months.
The 2019 pay package included a $1.2 million salary, $8.2 million worth of stock and option awards, a $5.5 million non-equity incentive plan compensation, a $4.1 million change in his pension value and $221,595 in other compensation.
The full value of the stock options, however, may never be realized due to fluctuations in stock prices and vesting schedules.
VF owns outdoor wear label The North Face and sneakers giant Vans and recently offloaded its jeans brands, which include Lee and Wrangler, into a separate publicly traded company called Kontoor Brands Inc.
The idea behind the move was to separate the relatively staid jeans brands from VF’s best-performing names, Vans and North Face. As part of the deal, Kontoor will stay in North Carolina while VF will move to Denver, and get its own dedicated management team that can focus on capturing a bigger slice of the resurgent denim market — a category that is bouncing back after some tough ath-leisure competition.
Rendle recently told WWD that the separation is about “thinking through the investor lens and creating maximum value for shareholders.”
Scott Baxter, a longtime VF exec who became the ceo of Kontoor, raked in a little over $3.5 million.