Business Context and Reporting Period
This Form 8-K Current Report was filed by Tapestry, Inc. on June 18, 2019, reporting events occurring on June 19, 2019. The filing primarily addresses the appointment of a new Chief Financial Officer (CFO) and details the associated compensatory arrangements.
Key Financial Metrics
This filing does not contain operational financial metrics such as revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on executive compensation terms.
Material Changes and Executive Appointment
The Board of Directors appointed Joanne Crevoiserat as Chief Financial Officer, effective no later than August 1, 2019. She will report directly to CEO Victor Luis. Ms. Crevoiserat joins from Abercrombie & Fitch Co., where she served as Executive Vice President and Chief Operating Officer.
Compensatory Arrangements and Outlook
The filing details the following compensation package for Ms. Crevoiserat:
- Base Salary: $900,000 per year.
- Annual Bonus: Target of 100% of base salary (starting fiscal year 2020), with a payout range of 0% to 200% based on performance criteria.
- Annual Equity Grant: Fair market value of $2,000,000 for fiscal year 2020, to be granted in August.
- Sign-on Cash Bonus: One-time payment of $700,000 (50% within six weeks of start date, 50% at six-month anniversary).
- Sign-on Equity Grant: Restricted Stock Units (RSUs) valued at $1,600,000, vesting in equal installments over four years.
All performance-based compensation is subject to the Company's incentive repayment policy in the event of a material restatement of financial results.
Investor Verification Checklist
- Verify the exact effective date of the CFO appointment (no later than August 1, 2019).
- Review the specific performance criteria for the annual bonus once determined by the Board.
- Monitor the vesting schedule and potential dilution from the $3.6 million in total sign-on and annual equity grants.
- Check the upcoming Form 10-K for the complete text of the Offer Letter.