NEW YORK — Bruce Klatsky is being rewarded for closing the February 2003 deal that brought Calvin Klein Inc. into the Phillips-Van Heusen Corp. fold.
According to filings with the Securities and Exchange Commission on Wednesday, PVH renewed Klatsky’s contract as chairman and chief executive officer for a six-year term and granted him options to purchase 1.8 million PVH shares “to recognize value created” by the acquisition.
The filing said Klatsky’s compensation would continue “at no less than his current base salary.” He could also receive a bonus. In 2002, the most recent period for which figures were available, the ceo pulled in a salary of $1 million and a bonus of $2.2 million.
PVH said last month that weakness in its retail operations and in the apparel and footwear business during the fourth quarter ended Feb. 1 was more than offset by $11.4 million in operating income from the Calvin Klein segment, on $40.4 million in revenues from that business.
The company’s stock has risen 56.9 percent from the time of the acquisition through last week. On Wednesday, the issue closed down 30 cents, or 1.6 percent, to $18.63 on the New York Stock Exchange.
The options carry a seven-year term and vest after six years, but are subject to accelerated vesting should the firm’s stock trade at or above an average of $22.50 for 20 consecutive trading days.