Nearly two years later…

July 12, 2004

When Limited Brands (LTD) announced in November 2002 that it was selling its Lerner New York/New York & Co. unit to an investment group led by Richard Crystal, the unit’s CEO, it forgot to mention that part of the deal required Limited to pay some hefty retention bonuses to Crystal and the other members of his management team. That info wasn’t disclosed until recently, when New York & Co. filed a registration statement to go public. But even then, it took the amended registration statement for New York & Co. to fully disclose the details since the first time around they simply stated that Limited paid $2.86 million in retention bonuses as part of the deal. In the most recent S-1, filed on Friday, New York & Co. disclosed that Limited paid Crystal a $1.175 million retention bonus — roughly 150% of his 2003 salary — and another $500,000 to New York & Co. CFO Ronald Ristau. The amended registration statement also corrected the bonuses that Mssrs. Crystal and Ristau received last year. In the initial filing, Crystal’s 2003 bonus was listed as $1.1 million, but in the revised filing, the 2003 bonus mysteriously grew to $1.7 million; Ristau’s bonus, which was initially listed as $353,250 in the May 24 filing, had nearly doubled to $630,000 by the July 9 filing.

Leave a Reply

You must be logged in to post a comment.