Under Armour CEO Kevin A. Plank earned nearly $3.6 million last year, with most of the compensation directly tied to the sports apparel maker's strong financial performance, the company said Friday.
Plank, whose base salary has remained at $26,000 since 2008, was paid the bulk of the earnings in cash incentives and stock awards, Under Armour said in its annual proxy filing with the U.S. Securities and Exchange Commission. In 2013, Under Armour paid Plank almost $3.2 million.
Last year, the company surpassed $3 billion in sales, a 32 percent jump, while operating income soared 34 percent to $354 million, both measures that are linked to goals in the executive cash incentive plan.
The CEO's $3.56 million in compensation included $1.6 million in stock awards, more than double 2013's stock award amount, and $1.9 million from an incentive plan.
Plank had asked for a base salary reduction in 2008 from $500,000 to the current $26,000, his salary when he founded the company in 1996.
"As our largest stockholder, he believes he should be compensated for his services based primarily on our company's performance," the filing said.
Plank owned about 36 million shares, worth roughly $2.7 billion, as of Feb. 25, the filing said.
The proxy statement also disclosed that Under Armour paid a company owned by Plank $1.8 million in 2014 to lease a jet for use by Plank and others for corporate purposes. It also notes Under Armour has agreed to lease roughly 130,000 square feet of office space from an entity controlled by Plank for $1.1 million a year starting in 2016.
Plank's Sagamore Ventures has acquired 120 acres and several buildings in Port Covington in South Baltimore, which Plank has said will accommodate Under Armour's growth. Sagamore is in the process of converting the former Sam's Club store there into Under Armour offices, with employees moving in around the end of this year.
According to the proxy, the company's longest-serving director other than Plank, Thomas Sippel, a partner of the corporate law firm Gill Sippel & Gallagher, is not standing for re-election to the board.
The proxy notifies shareholders of the company's annual meeting, which will be held at 11 a.m. April 29 at the company's Locust Point headquarters. It also lays out executive compensation and matters for the shareholders to vote on, including the election of directors and any corporate changes.