It looks like American Apparel might finally be out of the woods. That is, if Dov Charney’s 2012 paycheck is any indication.
Last year, the controversial CEO’s pay increased by nearly a third to a whopping $2 million, according to WWD. While his 2012 salary amounted to a still-impressive $800,000, he also received $1.2 million bonus.
And that’s just the cash portion of Charney’s compensation. He also owns a ton of company stock, making his “overall compensation” $14.5 million, a 25% increase from 2011. But Charney will have to meet certain lofty goals before he actually sees that money. Most of the sum comes from stock awards totaling $12.5 million, which will only be doled out if specified financial targets are reached.
As WWD notes, American Apparel’s stock is doing well—but not well enough for Charney to reap the rewards. Since the company posted an unexpected gain in fourth quarter sales earlier this month, the stock has been steadily rising and on Tuesday it shot up 27 cents, or 12.9%, to $2.37. Great news, but that’s still a crappy stock price. The company’s all-time high is $15.80—that happened way back in December of 2007.
And let’s be clear: American Apparel is still in a lot of debt. In fact, the company’s long-term debt stood at $110 million at year’s end, up from $97.1 million at the close of 2011.
The company is making progress, though. American Apparel reduced its net loss to $37.3 million from $39.3 million in 2011 and increased sales by 12.8 percent to $617.3 million.
Regardless, the shareholders will decide what sort of stock awards Charney will eventually receive at the annual meeting this summer. What do you think he deserves?