By Lorraine Mirabella, The Baltimore Sun
1:55 PM EDT, March 19, 2012
Total compensation for Under Amour CEO Kevin A. Plank fell 14 percent last year after the company failed to significantly improve its operating efficiency, the company said in a Securities and Exchange Commission filing.
Plank's compensation, including base salary and company performance incentives, totaled $1.13 million in 2011, down from $1.32 million in 2010, a proxy statement filed Friday showed. Plank, Under Armour's chairman, president and largest stockholder, made Forbes magazine's list of the world's billionaires earlier this month with a net worth of $1.1 billion.
Plank earned a base salary of $26,000 last year – an amount he agreed to that reflects his approximate salary when he founded the company. But incentive plan compensation for Plank dipped to $1.1 million, from $1.23 million in 2010, a result of management determining executives' incentive awards should be cut to 55 percent of the maximum award.
Executives had been asked to improve operating income as a percentage of net revenues, but the increase from 10.6 percent to 11.1 percent last year still fell below the targeted level. The leadership team was disappointed that growth in net revenue did not result in higher operating income, and thus a higher operating income percentage, the proxy said.
Copyright © 2014, The Baltimore Sun