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10-K
ICONIX BRAND GROUP, INC. filed this Form 10-K on 03/28/2019
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Mr. Haugh, the Company’s former Chief Executive Officer, was issued an Employment Inducement Award pursuant to his employment agreement.  The terms of the Employment Inducement Award are similar to the retention stock awards provided to all other employees as described above.  The grant date fair value of Mr. Haugh’s award issued on February 23, 2016 was $5.75 and was based on the following range of assumptions for the Company and the peer group (the grant date fair value and stock price valuation assumptions in the table below have not been effected for the Reverse Stock Split):

 

 

 

February 23. 2016

 

Valuation Assumptions:

 

 

 

 

Beginning average stock price (20 trading days prior to

   February 23, 2016)

 

$4.86 - $66.71

 

Valuation date stock price (closing values on

   February 23, 2016)

 

$5.52 - $69.92

 

Risk free interest rate

 

 

0.90

%

Expected dividend yield used when simulating the total

   shareholder return

 

 

0.00

%

Expected dividend yield used when simulating the

   Company's stock price

 

 

0.00

%

Stock price volatility (based on historical stock price over

   the last 3.00 years)

 

24.23% - 74.33%

 

Correlation coefficients

 

0.06 - 0.50

 

 

As of June 15, 2018, Mr. Haugh was no longer an employee of the Company or member of the Company’s board of directors.  As of June 15, 2018, pursuant to the terms of the awards and based upon the Company’s performance over the vesting period, no shares were issued upon expiration of his award.  

 

On October 15, 2018, the Company hired Robert C. Galvin as its Chief Executive Officer and President and was appointed to the Company’s board of directors.  Mr. Galvin was issued an Employment Inducement Award pursuant to his employment agreement.  The terms of the Employment Inducement Award are similar to the retention stock awards provided to other employees as described above.  The grant date fair value of Mr. Galvin’s award issued on October 15, 2018 was $0.18 and was based on the following range of assumptions for the Company and the peer group (the grant date fair value and stock price valuation assumptions in the table below have not been effected for the Reverse Stock Split):

 

 

 

October 15, 2018

 

Valuation Assumptions:

 

 

 

 

Beginning average stock price (20 trading days prior to

   October 15, 2018)

 

$0.27 - $86.49

 

Valuation date stock price (closing values on

   October 15, 2018)

 

$0.22 - $80.27

 

Risk free interest rate

 

 

2.92

%

Expected dividend yield used when simulating the total

   shareholder return

 

 

0.00

%

Expected dividend yield used when simulating the

   Company's stock price

 

 

0.00

%

Stock price volatility (based on historical stock price over

   the last 3.00 years)

 

20.88% - 108.81%

 

Correlation coefficients

 

-0.02 -0.48

 

 

Compensation related to the retention stock awards was a benefit of approximately $0.3 million and an expense of approximately $1.0 million for FY 2018 and FY 2017, respectively.  An additional amount of $0.4 million of compensation expense related to retention stock awards is expected to be expensed evenly over the next thirty-three months.

 

Long-Term Incentive Compensation

On March 31, 2016, the Company approved a new plan for long-term incentive compensation (the “2016 LTIP”) for key employees and granted equity awards under the 2016 LTIP in the aggregate amount of approximately 0.7 million shares at a weighted average share price of $73.10 with a then current value of approximately $5.2 million.  For each grantee other than Mr. Haugh, the Company’s Chief Executive Officer, 33% of the award was in the form of restricted stock units (“RSUs”) and 67% of the award was in the form of target level performance stock units (“PSUs”).  Mr. Haugh’s award under the 2016 LTIP consisted of 25% RSUs and

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