Under Armour CEO Plank earned $748K after company beats targets

March 19, 2010|By Baltimore Sun reporter

Under Armour Inc. said Chief Executive Kevin A. Plank earned total compensation of $748,061 in 2009, when the Baltimore-based sports apparel company beat its revenue target despite the recession.

Plank's compensation included a $26,000 base salary, a $718,575 annual cash incentive award, tied to company performance, and $3,486 in other compensation, according to a Securities and Exchange Commission filing. Plank's base salary did not change from 2008, when he had voluntarily reduced the amount to $26,000 from a base of $500,000 in 2007, the company's proxy, filed Friday, said. His total compensation in 2008 was $30,002.

Plank was eligible for an annual incentive that ranged from $192,000 to $1,474,000 last year, based on a sliding scale tied to the level of the company's operating income percentage. Before 2008, he had been eligible for an annual incentive of up to $1 million, or two times the base salary.

"The Compensation Committee believed that Mr. Plank's continued leadership and superior performance were a critical part of Under Armour's ongoing strong performance and that the maximum compensation for which he was eligible should not be decreased when he reduced his salary," the company said in the filing.

The company said tying a significant percentage of the executive's total compensation to corporate performance helps motivate leaders to grow the business. The company reported net revenue of $856.4 million last year, beating its target of $800 million.

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