Wet Seal's $2mn compensation package for Michael Gold
26 Jul '05
3 min read
The Wet Seal Inc - retailer of fashionable & contemporary apparel and accessory items
Women's fashion products retailer The Wet Seal Inc announced it has determined the accounting for the previously announced consulting agreement it entered into with Michael Gold on July 7, 2005. The consulting agreement is more fully described in the Company's related press release issued on July 12, 2005.
Under the terms of the consulting agreement, Mr. Gold will be paid $2.8 million for the fiscal year ending January 28, 2006 ("Fiscal 2005", the current fiscal year of the Company) and $1.2 million for the fiscal year ending February 3, 2007 ("Fiscal 2006").
The Company will take a charge of approximately $2.0 million for its second fiscal quarter ended July 30, 2005 to reflect Mr. Gold's cash compensation earned through July 30, 2005. For the remainder of this obligation, the Company will record compensation expense of $0.3 million in each of its third and fourth fiscal quarters of Fiscal 2005 and $0.3 million for each of its fiscal quarters in Fiscal 2006.
As more fully described in the July 12, 2005, press release, Mr. Gold will also be awarded 2.0 million shares of non-forfeitable restricted stock to vest on January 28, 2006, the last day of Fiscal 2005, and two tranches of performance shares of 1,750,000 each.
For the 2.0 million shares of non-forfeitable restricted stock, the Company will record non-cash compensation expense of approximately $13.3 million in the second fiscal quarter ending July 30, 2005, which is based upon the closing price per share of the Company's Class A Common Stock on July 7, 2005.
marketing@alchempro.com
