Business Context and Reporting Period
This Form 8-K is a current report filed by Coach, Inc. (referred to as TAPESTRY, INC. in metadata) on June 20, 2017. The filing addresses Item 5.02 regarding the departure of a senior officer and the determination of compensatory arrangements.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on executive compensation details.
Material Changes and Executive Departure
Andre Cohen, President of North America and Global Marketing, is resigning effective July 1, 2017, which coincides with the end of the Company's fiscal year 2017. His resignation was previously announced on April 6, 2017.
Compensatory Arrangements and Management Commentary
The Human Resources Committee of the Board of Directors determined the following compensation terms for Mr. Cohen:
- Bonus: Mr. Cohen will receive his earned bonus for fiscal year 2017 based on actual performance criteria achievement. Payment will occur on the standard bonus payment date, subject to adherence to post-employment restrictions.
- Equity Awards: Equity awards granted on August 14, 2014, will remain outstanding. They will pro-rata vest through his last day of employment (August 14, 2017), contingent on meeting performance conditions for performance restricted stock units.
- Exercise Period: Mr. Cohen will have 90 days following the vesting date to exercise any outstanding options from these awards.
Investor Verification Checklist
- Verify the exact vesting schedule and performance conditions for the equity awards granted on August 14, 2014, as referenced in the 2015 Proxy Statement.
- Confirm the specific date the Company pays bonuses for fiscal year 2017 to determine the payout timing for Mr. Cohen.
- Review the terms of Mr. Cohen's employment letter to understand the specific post-employment restrictions required to receive the bonus.
- Monitor subsequent filings for the appointment of a successor to the President, North America and Global Marketing role.