Under Armour founder Kevin Plank took a big hit to his compensation last year as a result of the Baltimore-based athletic apparel brand’s disappointing performance in 2017.
Plank, also the company’s chairman and CEO, earned $2.2 million last year after losing $2 million in performance-based stock option awards after Under Armour fell short of sales and operating income targets, the company said Wednesday in a U.S. Securities and Exchange Commission filing.
With the adjustment, Plank earned nearly 75 percent less than the $8.6 million he earned in 2016, the company said.
Under Armour’s revenue only grew 3.1 percent to $4.98 billion last year and operating income declined year over year as the company’s struggled in the U.S. market, the source of more than three quarters of its sales. Shares of the company’s stock lost more than half their value last year.
The brand has blamed a challenging retail environment, including the bankruptcies of wholesale customers, and changing consumer tastes.
“We believe we are taking proactive strategic steps to better position our company,” Under Armour said in the SEC filing.
Plank received no bonus last year and all of his performance-based equity award is expected to be forfeited, the filing said.
Plank’s compensation includes the value of shares vested and salary of $26,000, the amount he earned when he founded the company and the base he has earned since 2008 when he took a reduction from $500,000.
Under Armour said it will host a shareholders meeting on May 9 at its office in Baltimore’s Port Covington, where the company plans a new corporate campus amid a larger mixed-use redevelopment project backed by Plank.