Business Context and Reporting Period
This Form 8-K Current Report was filed by Tapestry, Inc. on April 12, 2021, regarding events occurring on April 15, 2021. The filing primarily addresses executive leadership changes within the Company, specifically the appointment of a new Chief Executive Officer for the Coach brand and a restructuring of the Company's top executive roles.
Key Financial Metrics
This filing does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity metrics. The document focuses exclusively on executive compensation and appointments.
Material Changes
The filing discloses the following material changes to the Company's executive leadership structure effective April 15, 2021:
- Appointment of Todd Kahn: Mr. Kahn was appointed as Chief Executive Officer and Brand President of Coach. He previously served as Interim CEO and Brand President since July 2020 and as President and Chief Administrative Officer of the Company since May 2016.
- Role Transition for Joanne Crevoiserat: Ms. Crevoiserat, the Company's Chief Executive Officer, was appointed as President of the Company in addition to her existing CEO role. She will not receive additional compensation for this new title.
- Compensation Agreement: A new letter agreement was executed with Mr. Kahn detailing his compensation package.
Guidance, Outlook, and Management Commentary
The filing provides no financial guidance, outlook, or general management commentary regarding business performance. However, it details the specific terms of Mr. Kahn's compensation agreement:
- Base Salary: $950,000 per year.
- Annual Incentive Plan (AIP): Target bonus of 125% of base salary, with a payout range of 0% to 200% based on performance criteria.
- Equity Grant: Guideline annual equity grant with a fair market value of $2,000,000 on the grant date, typically granted in August.
- Severance: In the event of termination without "Cause," Mr. Kahn is eligible for cash severance equal to 12 months of base salary.
- Restrictions: Mr. Kahn is subject to non-competition and non-solicitation covenants during employment and for 12 months following termination.
Key Facts for Investor Verification
- Verify the effective date of the leadership transition (April 15, 2021) and the specific roles assumed by Todd Kahn and Joanne Crevoiserat.
- Review the full text of the Letter Agreement (to be filed as an exhibit to the next Form 10-Q) for complete terms regarding equity vehicles and performance criteria.
- Confirm that no additional compensation was provided to Joanne Crevoiserat for her appointment as President.
- Note that the filing contains no financial results; investors should refer to the most recent Form 10-Q or 10-K for financial metrics.