NEW YORK – Michael Buckley will be eligible for a compensation package in excess of $1.2 million after he assumes his position as president of True Religion Apparel next week.
According to documents the Los Angeles premium jeanswear company filed with the Securities & Exchange Commission, Buckley has signed a three-year employment contract assuring a base salary of $400,000 a year. Buckley’s 2006 bonus will be a percentage of his base salary, based upon the company’s earnings before interest and taxes for the year. The bonus is capped at $800,000 for EBIT of more than $69 million. No bonus will be granted if EBIT is under $36.8 million, as is the case with the company’s other executives.
The contract also grants Buckley 100,000 shares of restricted common stock, worth about $1.76 million based on the stock’s closing price of $17.58 a share on Thursday. One-third of the shares will be vested in each year of the contract.
For complete coverage, see tomorrow’s WWD.