A Fashionable Start at Jones New York…
Yesterday, Jones New York (JNY) filed an 8-K that disclosed the terms of its new employment agreement with fashion wunderkind Richard Dickson.
Next Monday, Dickson, who’s only 41, will become the President and CEO – Branded Businesses of the Company for Jones Apparel Group, Inc. He’ll report to Wesley Card, who is giving up the title of President but will remain the company’s CEO.
Dickson’s agreement, which runs through the end of 2012, states that he’ll earn a base salary “of not less than” $1,000,000 and get a sign-on bonus of $455,000. So long as he stays through the end of 2010, he’ll also receive an Annual Cash Incentive Target Bonus of $900,000; in future years, his bonus will be based on the achievement of set objectives. The company is also giving Dickson $1,800,000 worth of performance-based restricted stock if he’s still there on Dec. 31, 2010. He’ll get another 100,000 shares of restricted stock in 2010, 2011, and 2012 “to make up for unvested existing equity values” that he had with his previous employer, Mattel, Inc. And, of course, there are the usual perks that reward one for the pressures that come with executive responsibility.
Dickson joined Mattel in 2003 and held positions of increasing responsibility during his time there. According to this article, Dickson is the guy who updated Barbie’s look and improved her popularity as a toy. (The same piece reported that 2009 holiday sales for Barbie were up 12%, whereas the company’s overall revenues increased just 1%.) Prior to joining Mattel, Dickson spent more than a decade working for Bloomingdale’s, and before that he launched an e-commerce beauty web site that was eventually acquired by the Estee Lauder Companies, Inc.
It’s hard to know how much better Dickson’s deal is at Jones New York than it was at Mattel. We looked at the proxy Mattel filed last March; however, Dickson’s salary isn’t disclosed since he wasn’t one of the five highest-paid executives.
It’s a safe bet, though, that the job is a step up in compensation, along with the new responsibilities.
Image source: Jones New York
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Posted in Tags: 8Ks, employment contracts |
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February 6th, 2010 at 3:39 pm
Could be the hachet mano that rag biz is so well known for?
From 1/28 Report:
Retail Improvement Plan
The Company continues to implement its previously-announced retail improvement plan to right-size the retail portfolio, with the goal of enhancing segment profitability, reducing capital expenditures and improving return on invested capital. To date, the Company has exited 99 locations and remains on track to exit a total of approximately 265 locations, with the remaining closings scheduled to occur throughout the remainder of 2010. The Company expects to report a profit on an adjusted basis in the Retail segment in the fourth quarter 2009.