Economy leads CEO to lower his salary

Under Armour's Plank gets $26,000 as goals not met

March 24, 2009|By Andrea K. Walker | Andrea K. Walker,andrea.walker@baltsun.com

Under Armour Chief Executive Officer Kevin Plank took home a base salary of just $26,000 last year after the Baltimore-based sports apparel company he founded did not meet revenue goals.

Plank voluntarily cut his salary from $500,000 to $26,000 last year, saying he thought he should be paid based on the performance of the company, according to documents filed with the Securities and Exchange Commission last week.

Plank was still eligible for a bonus of as much as $1.47 million, but the company had to meet revenues of at least $775 million for the year. Like most companies, Under Armour was hurt by the recession and a slowdown in consumer spending. While the company's revenues rose 19.7 percent last year to $725.2 million, the figures didn't reach the company's goals.

No Under Armour executive received performance bonuses last year, although Suzanne J. Karkus, senior vice president of apparel, and David McCreight, the company's president, received signing bonuses and other guaranteed bonuses promised when they were hired by the company.

The $26,000 was the same salary Plank made when he started Under Armour in 1996.

In 2007, Plank earned more than $1.5 million including his $500,000 salary and a $1 million bonus.

Plank has also proposed no salary increases for certain executive officers this year as "an effort to control expenses and manage our business more conservatively in the current economic environment," according to SEC documents.

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