Ralph Lauren Corporation (RL, Financial) has announced the appointment of Robert Ranftl as the new Chief Operating Officer, effective March 30, 2025. This strategic move is expected to bolster the company's operational leadership as it continues to navigate the competitive fashion industry.
According to the employment agreement, Mr. Ranftl will receive an annual base salary of no less than $1,000,000. He will also participate in the company's bonus programs, including the Executive Incentive Plan (EIP), which offers an annual target bonus opportunity of 100% of his fiscal year salary earnings, with a maximum potential of 200%. Additionally, starting in fiscal year 2026, Mr. Ranftl will be granted an annual equity award valued at $2,250,000 under the 2019 Long-Term Stock Incentive Plan (LTSIP).
The agreement outlines that if Mr. Ranftl's employment is terminated by the company for reasons other than death, disability, or cause, or if he resigns for good reason, he will receive a continuation of his base salary for one year, along with a lump sum equivalent to his target bonus. In the event of a termination following a change in control, Mr. Ranftl is entitled to a lump sum payment equal to twice his current annual base salary and the most recent bonus paid, with immediate vesting of any unvested stock options and awards.
These terms are contingent upon Mr. Ranftl's adherence to certain restrictive covenants, and any payments will comply with Section 409A of the Internal Revenue Code. The company has confirmed that there have been no transactions between Mr. Ranftl and Ralph Lauren Corporation or his family since the beginning of the last fiscal year.
This appointment is part of Ralph Lauren's ongoing efforts to strengthen its executive team and drive growth in the coming years. Investors and stakeholders will be keenly observing how Mr. Ranftl's leadership will impact the company's performance and strategic direction.
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