SALLY BEAUTY HOLDINGS, INC. (NASDAQ:SBH) Files An 8-K Results of Operations and Financial ConditionItem 2.02. Results of Operations and Financial Condition
On November 15, 2016, Sally Beauty Holdings, Inc. (the “Company”) issued the news release attached hereto as Exhibit 99.1 reporting the financial results of the Company for the quarter and the full year ended September 30, 2016 (the “Earnings Release”).
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointments of Certain Officers; Compensatory Arrangements of Certain Officers
On November 10, 2016, the Board of Directors (the “Board”) of the Company appointed Mr. Donald T. Grimes as Senior Vice President, Chief Financial Officer and Chief Operations Officer of the Company, effective December 12, 2016.
In connection with Mr. Grimes’ appointment as an executive officer of the Company, the Compensation Committee of the Board has approved an annual base salary for Mr. Grimes of $675,000 and a sign-on bonus of $250,000. In addition, Mr. Grimes’ target annual bonus under the Company’s Annual Incentive Plan will be 60% of his base salary, with the ultimate amount of such bonus to be determined based on the achievement of performance metrics approved by the Compensation Committee for fiscal year 2017 and pro-rated from Mr. Grimes’ first date of employment through the end of the 2017 fiscal year. Mr. Grimes will also receive an award of non-qualified stock options with a grant date value of $450,000 and an award of restricted stock with a grant date value of $300,000 under the Company’s Amended and Restated 2010 Omnibus Incentive Plan. The restricted stock award and the options award will vest ratably over three years and four years, respectively, subject to Mr. Grimes’ continued employment and otherwise upon the terms and conditions of the standard award agreement for the fiscal year 2017 long-term incentive awards to other officers. Mr. Grimes shall also enter into the Company’s standard form of change-in-control severance agreement for executive officers, which provides for, among other benefits, (a) a lump sum payment due to Mr. Grimes upon termination of employment (except for certain non-qualifying terminations, including termination for cause) following certain change-in-control transactions, in the amount of 1.99 times his annual base salary plus 1.99 times his average bonus over the previous five fiscal years of the Company and (b) for a period of 24 months following such termination, the continuation of all policies of medical, accident, disability and life insurance with respect to Mr. Grimes and his dependents with the same level of coverage as provided by the Company prior to such termination, subject to certain other terms and conditions.
Prior to his appointment at the Company, Mr. Grimes, age 54, was the Executive Vice President, Chief Operating Officer and Chief Financial Officer of Neiman Marcus Group LTD LLC (“Neiman Marcus”) since June 2015. Neiman Marcus is a premier luxury retailer offering an upscale assortment of apparel, accessories, jewelry, beauty and decorative home products. At Neiman Marcus, Mr. Grimes’ responsibilities included legal, treasury, financial planning and analysis, investor relations, accounting and SEC compliance, distribution and fulfillment, real estate and property management, loss prevention, customer care, credit and collections, internal audit and risk management.
