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Under Armour CEO reduces his own pay |
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Written by Administrator
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Wednesday, 25 March 2009 14:46 |
According to a story published today in the Baltimore Sun, Under Armour founder and CEO David Plank was paid only $26,000 for his work in 2008. He made the decision to reduce his $500,000 salary after the athletic apparel company failed to meet revenue goals. According to documents filed with the Securities and Exchange Commission, Plank felt he should be paid based on company performance.
The company currently sponsors American ski racer Lindsey Vonn, snowboard cross racer Lindsey Jacobellis and the entire U.S. Freestyle Ski Team.
Slow sales due to the recession also led Plank to cut his own year-end bonus, which could have been as much as $1.47 million, because the company fell short of their $775 million revenue goal for 2008.
In a surprising twist, the company’s revenues for 2008 were actually up 19.7 percent to $725.2 million, but missed the goal by about $50,000 million, meaning no executives at the company received performance bonuses.
Plank arrived at the amount of his new salary by matching what made in 1996, Under Armour’s first year. Last year he earned more than $1.5 million.
Source: Ski Racing.com, March 24, 2009
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