Coach, Inc. (NYSE:COH) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Item 5.02 Departure of Directors or Certain Officers; Election of
Directors; Appointment of Certain Officers; Compensatory
Arrangements of Certain Officers.
On April 6, 2017, Coach, Inc. (Coach or the Company) announced
that its Board of Directors (the Board) appointed Joshua
Schulman, age 45, President Chief Executive Officer of the Coach
brand of the Company, effective June 5, 2017 (the Effective
Date), reporting directly to Victor Luis, Chief Executive Officer
of the Company. Mr. Schulman joins Coach from Neiman Marcus
Group, where he has served as President, Bergdorf Goodman and NMG
International since October 2014, having first become President
of Bergdorf Goodman in May 2012. From 2007 until February 2012,
Mr. Schulman was Chief Executive Officer of Jimmy Choo, Ltd.
Prior to Jimmy Choo, Mr. Schulman served in senior executive
roles at global retail and luxury brands including, Managing
Director, International Strategic Alliances, Gap, Inc., Executive
Vice President, Worldwide Merchandising and Wholesale, Yves Saint
Laurent, as well as Worldwide Director, Womens Ready-to-Wear,
Gucci.
Under the terms of his offer letter (the Offer Letter), Mr.
Schulman will receive an initial base salary of $950,000 per
year, with a target bonus opportunity to Coachs Performance-Based
Annual Incentive Plan equal to 100% of his base salary actually
paid during each fiscal year (with payment ranging from 0 200% of
target subject to performance). The actual amount of this bonus
will be based on Coachs attaining pre-set financial or other
operating criteria determined by Coachs Board of Directors in
accordance with the terms of the Performance-Based Annual
Incentive Plan. All performance-based compensation paid to Mr.
Schulman is subject to Coachs incentive repayment policy
applicable in the event of a material restatement of the Companys
financial results.
Mr. Schulman will receive an annual equity grant target of
$2,000,000 for fiscal year 2018, to be granted in a fixed
proportion of different equity vehicles as determined by the
Board and normally granted in August, which may include
performance restricted stock units, stock options and restricted
stock units (RSUs).
Mr. Schulman will receive a one-time, sign-on cash bonus of
$500,000, 50% of which will be payable within six weeks of his
start date and 50% of which will be payable on his six-month
anniversary. He will also receive a sign on grant of RSUs and
stock options with a value of $2,000,000. These RSUs will be
eligible to vest, and convert into shares of Coach common stock
and these stock options will become exercisable, in equal
installments on the first, second, third and fourth anniversary
of the grant date.
There are no family relationships between Mr. Schulman and any
director or executive officer of the Company and he has no direct
or indirect material interest in any transaction required to be
disclosed to Item 404(a) of Regulation S-K.
The foregoing does not constitute a complete summary of the terms
of the Offer Letter, which will be filed as an exhibit to Coachs
next quarterly report on Form 10-Q.
On April 6, 2017, the Company announced that Ian Bickley, 53, the
President, International Group for the Coach brand was named
President, Global Business Development and Strategic Alliances
for Coach, Inc., effective July 2, 2017.
Since joining the Company in 1993, Mr. Bickley has held
international roles of increasing responsibility and seniority,
most recently as the Companys President, International Group
since August 2013. There are no family relationships between Mr.
Bickley and any director or executive officer of the Company and
he has no direct or indirect material interest in any transaction
required to be disclosed to Item 404(a) of Regulation S-K.
On April 3, 2017, Andre Cohen, the President, North America and
Global Marketing for the Coach brand, notified the Company that
he will be resigning from the Company. Mr. Cohens last day with
the Company will be July 1, 2017.
On April 6, 2017, the Company issued press releases concerning
the appointment of Mr. Schulman and the resignation of Mr. Cohen,
and the appointment of Mr. Bickley to his new position. Copies of
the press releases are attached as Exhibits 99.1 and 99.2 to this
Current Report on Form 8-K and are incorporated herein by
reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits. The following exhibits are being furnished
herewith:
| 99.1 | Text of Press Release, dated April 6, 2017 |
| 99.2 | Text of Press Release, dated April 6, 2017 |
About Coach, Inc. (NYSE:COH)
Coach, Inc. (Coach) is a design house of luxury accessories and lifestyle collections. The Company’s product offering uses a range of leathers, fabrics and materials. Its segments include North America, International and Stuart Weitzman. The North America segment includes sales of Coach brand products to North American customers through Coach-operated stores (including the Internet) and sales to North American wholesale customers. The International segment operates department store concession shop-in-shop locations and retail and outlet stores, as well as e-commerce Websites. The Stuart Weitzman segment includes sales across the world generated by the Stuart Weitzman brand, primarily through department stores in North America and international locations, and within Stuart Weitzman operated stores (including the Internet) in the United States, Canada and Europe. Its product offerings include women’s and men’s bags, ready-to-wear, including outerwear, watches, fragrance and jewelry. Coach, Inc. (NYSE:COH) Recent Trading Information
Coach, Inc. (NYSE:COH) closed its last trading session down -0.22 at 39.34 with 2,888,607 shares trading hands.
