Wet Seal's $2mn compensation package for Michael Gold
26 Jul '05
3 min read
For the two tranches of performance shares, the Company will record compensation expense on a variable basis over the 30-month period ending January 1, 2008. The amount and timing of such charges could vary significantly depending upon fluctuations in the Company's Class A Common Stock price per share and/or the probability of achieving the stock price performance hurdles under the agreement.
Further, with respect to the second tranche of performance shares, the entire amount of any unrecognized stock compensation expense could be accelerated and charged in the period that the Company's Wet Seal division achieves sales per square foot and merchandise margin targets based on a trailing 12 months, anytime prior to January 1, 2008.
If all of the performance share stock price hurdles are attained, the Company will record non-cash compensation charges of at least $20.0 million over the 30-month period ending January 1, 2008. The Company cannot presently determine whether the price hurdles will be achieved, the amount of the periodic charges or the timing of the charges for the reasons explained above.
California based The Wet Seal Inc is a leading specialty retailer of fashionable and contemporary apparel and accessory items. Currently, it operates a total of 397 stores in 46 states, the District of Columbia and Puerto Rico, including 306 Wet Seal stores and 91 Arden B. stores.
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