Supreme has already established an outsized place in streetwear, culture, fashion and dealmaking — with its 2017 valuation of $1 billion more than doubling in its $2.1 billion-plus sale to VF Corp. last year.
Turns out, there’s an outsized stock deal wrapped up in with the company’s purchase price — one that could net an unnamed member of the brand’s management enough stock over four years to tally $47.8 million at the current stock price of $79.04.
“In connection with the acquisition, VF deposited in escrow 605,050 shares of VF common stock, which are subject to certain restrictions, for a key member of Supreme management,” the company said in a filing with the Securities and Exchange Commission. “The common shares are subject to certain future service requirements and vest over periods of up to four years. VF will recognize the stock-based compensation cost for the fair value of these awards over the vesting periods.”
In December, VF bought Supreme from founder James Jebbia and the private equity firms he previously partnered with, Goode Partners and Carlyle. The price included $2.1 billion in cash plus an additional future payment of up to $300 million, subject to the brand’s performance through January 2022.
VF’s top brass — Steve Rendle, chairman, president and chief executive officer, and Scott Roe, chief financial officer — have been clear that Supreme is already well run and they’re going to take a hands off approach, offering support and access to VF’s capabilities when it’s wanted and needed.
Last month, Roe described Supreme as “a beautiful, simple machine” and said, “we don’t want to mess it up.”
That largely leaves the brand where it’s always been, squarely in the hands of Jebbia, who built the brand from a downtown skate shop in New York into a global presence.
VF did not specify who the “key” executive is in the stock deal was — although Jebbia is the obvious guess — and a Supreme spokesperson declined to comment or offer additional details.
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