| We regularly engage with stockholders to understand their perspectives on our company, our business and their concerns. Our CEO, CFO and head of investor relations held discussions during 2020 with approximately 75% of our top 15 stockholders who are active managers (i.e., excluding index funds and others who do not meet with management) and who hold approximately 35% of PVH’s outstanding shares. We meet with and speak to stockholders during appearances by management at scheduled events, as well as in one-on-one meetings and through conference calls held throughout the year. We held discussions during 20182020 with almost 80% approximately 75%of our top 15 stockholders who are active managers (i.e., excluding index funds and others who do not meet with management). We meet with stockholders during appearances by management at scheduled events, as well as in private meetings held throughout the year. | | | | |
Our discussions with stockholders cover a wide rangein 2020 often were focused on the impacts of topics, but generallythe pandemic on our conversations involvebusiness and finances and the following issues: ■
Our acquisition strategyactions we were taking to safeguard both. Additionally, our CEO transition and plans, including with regard to our stated intention to continue to assert more direct control over our global lifestyle brands, TOMMY HILFIGER and CALVIN KLEIN
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Our growth opportunities for eachthe strategic vision of our new CEO were often discussed. Other common issues discussed included: | ◾ | Our long-term growth targets |
| ◾ | Our senior leadership team |
| ◾ | Growth opportunities for each of our branded businesses, including regional and category opportunities |
| ◾ | Our approach to managing the brand portfolio |
| ◾ | Our plans and perspectives on, as well as expected impact on us of, macroenvironmental issues |
| ◾ | The competitive landscape and how we are positioned to gain market share, particularly in North America |
| ◾ | Our initiatives to grow digital commerce |
| ◾ | Our consumer engagement initiatives, both globally and regionally |
| ◾ | Infrastructure investments, including developing a consumer data platform for improving insights and data analytics, as well as for supply chain optimization and speed to market initiatives |
| ◾ | Free cash flow, particularly how it is used for capital allocation, such as stock repurchases and dividend policy |
| ◾ | Our corporate responsibility program |
■
Our long-term growth targets
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Our plans and perspectives on, as well as expected impact on us of, macroenvironmental issues, such as the prospect of additional tariffs on imports to the United States of goods manufactured in China, tax reform in the United States and elsewhere, the economic slowdown in China, and rising labor and raw material costs
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The competitive landscape and how we are positioned to gain market share
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Our consumer engagement initiatives, both globally and regionally
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Our initiatives to grow digital commerce
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Infrastructure investments, including developing a consumer data platform for improving insights and data analytics, as well as for supply chain optimization and speed to market initiatives
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Capital allocation, including stock repurchases and dividend policy
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Our corporate responsibility program
We also engage with stockholders on our compensation practices, most notably on CEO compensation, and periodically seek input from them regarding our compensation program and the compensation paid to Mr. Chirico and the otherour senior executives. The Compensation Committee has discussed and considered communications received from stockholders relating to our compensation program, and, in the past, the Committee ChairmanChair has responded to inquiries, where appropriate.inquiries. In addition, the members of the Compensation Committee typically attend our Annual Meeting and are available to answer questions regarding our compensation program. In general, feedbackFeedback from our stockholders typically is positive, and we generally have not generally received any requests to undertake changes to our compensation practices, adopt corporate governance measures, undertake additional (or enhance existing) corporate responsibility initiatives, or expand our engagement practices. Director Resignation Policy
DIRECTOR RESIGNATION POLICY The election of directors in an uncontested election requires the affirmative vote of a majority of the votes cast at an annual meeting. Our Corporate Governance Guidelines provide that a director seeking re-election who does not obtainreceive a majority vote of stockholders must offer a letter of resignation. The Nominating, Governance & Management Development Committee will make a recommendation to the full Board on whether to accept or reject any such resignation, or whether other action should be taken. The Board must act on the Committee’s recommendation and publicly disclose its decision and the rationale behind it within 90 days from the date election results are certified. Our Corporate Governance Guidelines provide that the Nominating, Governance & Management Development Committee and the Board may consider any factors and information that they consider appropriate and relevant in making their respective decisions. The director who has tendered a resignation cannot participate in the Committee or Board discussions regarding that resignation. 22 | PVH CORP. 2021 PROXY STATEMENT | | | | | PVH CORP. 2019 PROXY STATEMENT
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Corporate Governance Director On-Boarding
Director On-Boarding
DIRECTOR ON-BOARDINGWe conduct a comprehensive on-boarding process for new directors. We believe a wide-ranging orientation is important in positioning new directors for success. The process includes pairing aeach new director with a seasoned member of the Board who serves as a peer mentor for the first three to six months. In addition, new directors participate in a corporate, business and financial orientation program that involves substantive individual meetings with senior executives. For example, the Chief Executive Officer will brief new directors on current business and strategy; the Chief Operating & Financial Officer will speak about our financial performance; the Treasurer and SeniorExecutive Vice President, Business Development andChief Strategy Officer, who leads our Investor Relations team, will discuss our capital structure, the stockholder base and investor relations; the General Counsel will discuss corporate governance, periodic reporting and stock-related matters; and the Chief Human ResourcesPeople Officer will report on human resources strategies, key talent and succession planning. In addition, senior executives in our Tommy Hilfiger, Calvin Klein and Heritage Brands businesses provide an overview of their respective businesses. The orientation also includes an introductory session with the Chair or members of the Board committee on which the new director will sit, and may also include executives and outside advisors who work with that committee. SEC filings and other information are provided as a background resource. We endeavor to have all new directors visit our European headquarters in Amsterdam within their first year of service. Ongoing Director Education
ONGOING DIRECTOR EDUCATION We have created a website for directors that is part of our PVH University learning management system.platform. The site provides directors with access to information on director educational conferences and programs, our PVH Complies compliance training courses, and the extensive library of courses we offer to our associates. The site identifies programs, conferences and classes recommended by other directors and our Talent Development Team. We encourage directors to pursue educational opportunities to enable them to better perform their duties and to learn about emerging issues. In addition, weMoreover, our Corporate Governance Guidelines strongly encourage directors to attend at least one external director education program per year. We provide access to educational materials and resources, including subscriptions to outside publications relevant to governance and our industry, and membership in governance organizations. We do not limit the amount of time or money that can be spent on director education, although we do evaluate the courses and conferences to make certain that the subject matter is appropriate for the director and their role. Directors are allowed to determine the amount of education they deem appropriate. However, our Corporate Governance Guidelines strongly encourage directors to attend at least one external director education program per year. The Nominating, Governance & Management Development Committee may request that directors seek out particular education programs or that the Board receive presentations based on results from the Board questionnaires and individual director self-assessments. We often incorporate travel to PVH facilities and facilities operated by business partners to educate directors on our global operations, as well as matters related to the committees on which they serve. For example, the entire Board traveled in 20182019 to Hong Kong, ShanghaiAmsterdam, where our European headquarters is based, and TokyoDusseldorf, the headquarters for the largest business in Europe. The meetings there enabled the Board to visitmeet with key members of management in those offices, to meet the country managers of each European office, and to tour our offices and certain key retail operations there, and membersoperations. Trips of the Corporate Responsibility Committee have traveledthis nature were impossible for most of 2020, but we aspire to see factories where our goods are produced. Management Succession Planning
reinstate them once travel like this becomes appropriate again.MANAGEMENT SUCCESSION PLANNING The Nominating, Governance & Management Development Committee has implemented a detailed plan regarding succession planning. Succession plans for the Chief Executive Officer and the senior management team are updatedreviewed at least annually and theupdated as necessary. The Committee presents a status report on succession plans annually to the full Board. The succession-planning process includes both identifying and developing plans for promising internal candidates and, with respect to CEO succession, identifying external candidates. The plan includes mid-term and long-term solutions and arrangements in the event an emergency arises. PVH CORP. 2021 PROXY STATEMENT | 23 | | 20 | | | | | | | PVH CORP. 2019 PROXY STATEMENT
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CORPORATE GOVERNANCE HOW TO CONTACT THE BOARD HOW TO CONTACT THE BOARD Stockholders and other interested parties may send communications to the Board of Directors (or specified group of individual directors, such as the non-management directors and the presiding director). Any such communication should be addressed to the Board (or individual director) in care of the Secretary of PVH Corp., 200 Madison Avenue, New York, New York, 10016-3903. COMMITTEES The Board of Directors has four standing committees: Audit & Risk Management; Compensation; Nominating, Governance & Management Development; and Corporate Responsibility. Each committee has a written charter adopted by the Board of Directors that is available on our website at PVH.com/investor-relations/governance. The Board has determined that all members of the four standing committees satisfy the independence requirements under NYSE listing standards and SEC rules. | Audit & Risk Management Committee |
Edward R. Rosenfeld (Chair) V. James Marino Amy McPherson 9 MEETINGS IN 2020 TABLE OF CONTENTSThe Audit & Risk Management Committee is directly responsible for the appointment, compensation, and oversight of the work of the outside auditing firm. In addition, the Audit & Risk Management Committee helps the Board fulfill its oversight functions relating to the quality and integrity of our financial reports by: | ◾ | monitoring our financial reporting process and internal audit function; |
| ◾ | monitoring the outside auditing firm’s qualifications, independence, and performance; and |
| ◾ | performing such other activities consistent with its charter and our By-laws as the Committee or the Board deems appropriate. |
The Board has determined that all members of the Audit & Risk Management Committee meet the heightened independence requirements for purposes of audit committee service under NYSE listing standards and SEC rules, and each also qualifies as an “audit committee financial expert,” as defined in SEC rules. Corporate Governance Political
Amanda Sourry (Chair) Henry Nasella Allison Peterson (beginning January 2021) Craig Rydin 14 MEETINGS IN 2020 The Compensation Committee discharges the Board’s responsibilities relating to the compensation of our executive officers. The Compensation Committee also has overall responsibility for evaluating and Lobbying Activities Politicalapproving, or recommending to the Board approval of, all of our compensation plans, policies, and Lobbying Activities
PVH does not contributeprograms, and is responsible for preparing the Compensation Committee Report that appears in this Proxy Statement. The Compensation Committee is authorized to political candidates, parties or causes. We do occasionallydelegate limited authority to enable the Chief Executive Officer to make equity awards subject to parameters the Committee establishes. For more information on the CEO’s ability to grant equity awards, see “Compensation Committee Process,” which begins on page 42.Our Chief Executive Officer, Chief People Officer, Executive Vice President, Global Compensation, Benefits and HR Systems, and General Counsel regularly attend and participate in lobbying activities, principally through our membership in industry associations.Compensation Committee meetings, as do representatives of ClearBridge Compensation Group, the Committee’s independent compensation consultant since 2009. For example, we are involved in ongoing efforts not to have apparel and footwear imported intomore information on the U.S. from China subjected to additional tariffs. We believe additional tariffs would be damaging to retail sales, cause price increases and job losses, and would be excessive given the already elevated level of tariffsindependent compensation advisor, see “Independent Compensation Consultant,” which begins on these imports as compared to other product categories. We were involved in 2017 in industry efforts on proposed U.S. tax reform and, in particular, lobbying against the suggestionpage 44.The Board has determined that a border adjustment tax on imports be included in the broader reform plan. We were actively involved in 2014 and 2015 in seeking an extensionall members of the African GrowthCompensation Committee meet the heightened independence requirements for purposes of compensation committee service under the Internal Revenue Code of 1986 (the “Code”) and Opportunity Act (“AGOA”), which offers incentives for African countries to continue their efforts to open their economies and build free markets. We believe East Africa provides a potential opportunity for usSEC rules. There were no interlocks or relationships involving any member of the Compensation Committee during 2020 that are required to be involved indisclosed under the vertically integrated production of apparelSEC’s rules or proxy regulations. 24 | PVH CORP. 2021 PROXY STATEMENT CORPORATE GOVERNANCE COMMITTEES | Nominating, Governance & Management Development Committee |
Joseph Fuller (Chair) Amy McPherson (beginning
June 2020) Henry Nasella Craig Rydin (through June 2020) Amanda Sourry 7 MEETINGS IN 2020 The Nominating, Governance & Management Development Committee is charged with: | ◾ | identifying individuals qualified to become Board members; |
| ◾ | recommending director nominees to the Board; |
| ◾ | recommending members for each Board committee; |
| ◾ | overseeing Board, committee and director evaluations; |
| ◾ | recommending the Corporate Governance Guidelines relating to Board service; |
| ◾ | conducting Chief Executive Officer succession planning, and monitoring succession planning for senior management; |
| ◾ | monitoring senior management development; and |
| ◾ | monitoring issues of corporate culture and conduct. |
| Corporate Responsibility Committee |
G. Penny McIntyre (Chair) Mary Baglivo Brent Callinicos George Cheeks (beginning March 2021) 5 MEETINGS IN 2020 The Corporate Responsibility Committee is charged with acting in an environment whereadvisory capacity to the Board and management with respect to policies and strategies that affect PVH’s role as a socially responsible organization, generally consisting of oversight and guidance in respect of Forward Fashion. Forward Fashion is our corporate responsibility standards can be implemented fromprogram intended to transform how clothes are made and (re)used, and move our business and the outset, including adherence to best practices infashion industry toward a more innovative and responsible future. The Committee also receives reports on our Inclusion & Diversity program, PVH University, The PVH Foundation (our charitable and philanthropic organization), our business resource groups (affinity groups for working conditions, workers’ rights, buildingparents, Black, Latinx, and fire safety,Asian American and use of green energy sources. We continue to monitor the eligibilityPacific Islander associates, women, members of the countriesLGBTQIA+ community, and other communities within PVH), and other ways we advance our core values. PVH CORP. 2021 PROXY STATEMENT | 25 CORPORATE GOVERNANCE MEETINGS MEETINGS Our Corporate Governance Guidelines require all members of the Board of Directors to use reasonable efforts to attend, in sub-Saharan Africa where we produce in order to participate in AGOA benefits,person or by telephone or video conference, all meetings of the Board and of any committees on which for producers like PVH, allows us to import goods intothey serve, as well as the U.S. on a duty-free basis. Values and Corporate Responsibility
We believe that PVH is truly a unique organization, from our associates’ embodimentannual meeting of stockholders. All of our values — individuality, partnership, passion, integritydirectors who were nominees for election at the 2020 Annual Meeting of Stockholders attended the meeting, and accountability —we expect all nominees for director to our ongoing commitment to Corporate Responsibility (“CR”), to our efforts to invest inattend the long-term success2021 meeting. There were ten meetings of the Board of Directors during 2020. All of our associates. We recognize our responsibility as an industry leader to consider CR throughout our strategic business decisions to positively affect human rights, protectdirectors during 2020 attended 100% of the environment, foster inclusion and diversity, and sponsor community engagement. We believe that our success is not only measured by our business results, but how we achieve them.
Asmeetings of the conscience of our industry shifts toward more responsible, sustainable practices, we are positioning our business to be at the forefront of what’s next. We recently unveiled the next evolution of our CR strategy — Forward Fashion. The heart of this ambitious vision for the future is to reduce negative impact to zero, increase positive impacts to 100% and improve the over one million lives across our value chain. We believe that this strategy truly represents our purposeBoard and the way we should all do business.
PVH would not be where it is today without our industry-leading talent. We believe our associates are a reflection of our organization and that it is our responsibilitycommittees on which they served during the year (with respect to encourage an inclusive environment, which ultimately inspires change from within. We believe we are developing a strong foundation for continued success by creating a workplace that appreciates our associates and acknowledges that our people are our greatest asset. We are proud to note that our efforts regularly are recognized publicly in a variety of ways, including appearing on Forbes’ list of Best Employers for Diversity, Fortune magazine’s listthe portion of the World’s Most Admired Companies, Forbes’ inaugural list of Best Employers for Women, and Top Five Lead Awards from HR.com in five categories, including Best Corporate University.year they served).
We invite you to read our annual CR Report and learn more about how we drive fashion forward — for good — by visiting the Corporate Responsibility section of our website at PVH.com/responsibility.
You can learn more about our recognitions — which highlight the Power of PVH — by visiting the Recognitions section of our website at PVH.com/company/recognitions.
| | | | | PVH CORP. 2019 PROXY STATEMENT
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Corporate Governance Meetings
Meetings
| Our Corporate Governance Guidelines require all members of the Board of Directors to use reasonable efforts to attend, in person or by telephone or video conference, all meetings of the Board and of any committees on which they serve, as well as the annual meeting of stockholders. All of our directors attended the 2018 Annual Meeting of Stockholders, and we expect them all to attend the 2019 meeting as well. There were five meetings of the Board of Directors during 2018. All but one of the directors attended 100% of the aggregate number of meetings of the Board and the committees on which they served. One director missed one Board meeting. | | | | |
Board meetings typically cover four categories of business, as described below. Corporate governance matters.These discussions include approval of minutes and dividends, committee reports, and the review of Board and committee charters, Board policies, and Securities and Exchange Commission (“SEC”)SEC filings. Standing agenda items.These discussions address matters such as business and financial updates, budget review and approval, corporate strategy and strategic opportunities/alternatives, capital structure, and updates on enterprise risk management, corporate responsibility and other programs. Topical issues.The Board receives presentations on and, as appropriate, considers, matters such as competitive and industry developments, advertising and marketing campaigns, regulatory updates, capital programs, and initiatives like speed-to-market, Africa sourcing and organizational restructurings. Transaction-related discussions and approvals.The Board discusses issues such as financings, acquisitions and joint ventures when they arise.
To ensure that the Board is fully informed about issues under discussion, meetings often include presentations by our corporate officers, senior executives or internal subject matter experts, and outside advisors and consultants. One meeting each year typically is convened offsite for several days to give directors an opportunity to consider and discuss at length matters such as strategy, opportunities, business strengths and weaknesses, and competitive threats. The offsiteThis meeting also provides the directors with exposure to and the opportunity to interact with a large contingent of executives from the global management team. These interactions help the Board assess the talent pool globally. Executive Sessions
We did not hold this meeting in 2020 due to the pandemic.EXECUTIVE SESSIONS Each Board meeting begins in an executive session of all of the directors (along with the corporate Secretary)secretary). This session includes an overview of the agenda by the Chairman and Chief Executive Officer and a preview of some of the key issues confronting management. In addition, the executive session gives directors an opportunity to prepare possible lines of questioning for management and outside advisors and enables the Board to discuss issues that they do not want to raise with the rest of management present. On occasion, other members of management other than the CEO and the corporate secretary will be invited to participate with respect to discrete items. Our independent directors also meet at the end of each regular meeting (and other times) in executive session to discuss Board presentations, management performance, and the performance of our Chief Executive Officer. Mr. Nasella, our presiding director, leads these executive sessions. EVALUATIONMr. Nasella meets with our Chief Executive Officer at least annually to discuss the Board’s feedback on the CEO’s performance and areas for improvement. The feedback is elicited through a written performance evaluation completed by each director that solicits both quantitative and qualitative responses regarding five key areas of performance: Leadership and People; Strategic Planning; Financial Results; External Relations; and Board Relations. 26 | PVH CORP. 2021 PROXY STATEMENT | | 22 | | | | | | | PVH CORP. 2019 PROXY STATEMENT
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Corporate Governance Transactions with Related Persons
Transactions with Related Persons
TRANSACTIONS WITH RELATED PERSONSSEC rules require us to disclose certain transactions with “related persons.” These are transactions, subject to certain exceptions, involving amounts in excess of $120,000 between PVH on one side and one of the following categories of people on the other side: | ◾ | a current director or executive officer; |
| ◾ | a person who, during our most recently completed fiscal year, served as a director or executive officer; |
■ | ◾ | a holder of more than 5% of our common stock; or |
| ◾ | an immediate family member of any of the foregoing persons. |
a current director or executive officer;
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a person who, during our most recently completed fiscal year, served as a director or executive officer;
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a nominee for director;
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a holder of more than 5% of our common stock; or
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an immediate family member of any of the foregoing persons.
The only transactiontransactions that meetsmeet these criteria is that Dominic Chirico, a son of Emanuel Chirico, has worked in our Calvin Klein business since September 2010. In 2018, Dominic Chirico received compensation of $295,611 consisting of salary and bonus. are as follows: | ◾ | Dominic Chirico, a son of Emanuel Chirico, has worked in our Calvin Klein business since September 2010. Dominic Chirico received compensation of approximately $398,000, consisting of salary and bonus, with respect to 2020. |
| ◾ | Vincent Chirico, a son of Emanuel Chirico, works in our Calvin Klein business and has worked at the company since September 2014. Vincent Chirico received compensation of approximately $157,000, consisting of salary and bonus, with respect to 2020. |
The Audit & Risk Management Committee is required to review and approve any transaction between PVH and any director or executive officer that will, or is reasonably likely to, require disclosure under SEC rules. In determining whether to approve any such transaction, the Committee will consider the following factors, among others, to the extent relevant to the transaction: | ◾ | whether the terms of the transaction are fair to PVH and on the same basis as would apply if the transaction did not involve a related person; |
| ◾ | whether there are business reasons for PVH to enter into the transaction; |
| ◾ | whether the transaction would impair the independence of an outside director; and |
■ | ◾ | whether the transaction would present an improper conflict of interest for a director or executive officer, taking into consideration such factors as the Committee deems relevant, such as the size of the transaction, the overall financial position of the individual, the direct or indirect nature of the individual’s interest in the transaction, and the ongoing nature of any proposed relationship. |
whether the terms of the transaction are fair to PVH and on the same basis as would apply if the transaction did not involve a related person;
■
whether there are business reasons for PVH to enter into the transaction;
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whether the transaction would impair the independence of an outside director; and
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whether the transaction would present an improper conflict of interest for a director or executive officer, taking into consideration such factors as the Committee deems relevant, such as the size of the transaction, the overall financial position of the individual, the direct or indirect nature of the individual’s interest in the transaction, and the ongoing nature of any proposed relationship.
Additionally, under our Code of Business Conduct & Ethics and our Conflict of Interest Policy, our directors and associates, including executive officers, have a duty to report all potential conflicts of interest, including transactions with related persons. We have established procedures for reviewing and approving disclosures under the Conflict of Interest Policy and all disclosures are discussed annually with the Audit & Risk Management Committee. Governing Documents
GOVERNING DOCUMENTS Corporate Governance Guidelines.Our Corporate Governance Guidelines address matters such as director qualifications and responsibilities, Board committees and their charters, the responsibilities of the presiding director, director independence, director access to management, director compensation, director orientation and education, evaluation of management, management development and succession planning, and annual performance evaluations for the Board. The Nominating, Governance & Management Development Committee reviews the Corporate Governance Guidelines annually and determines whether to recommend changes to the Board. Code of Ethics for Chief Executive Officer and Senior Financial Officers.Our Code of Ethics is designed to ensure full, fair, accurate, timely and understandable disclosure in the periodic reports we file with the SEC. We intend to disclose on our website any amendments to, or waivers of, the Code of Ethics that would otherwise be reportable on a Current Report on Form 8-K. Any such disclosure will be posted within four business days following the date of the amendment or waiver. Code of Business Conduct and Ethics.The Code of Conduct, which applies to all PVH directors, officers and associates, addresses matters such as conflicts of interest, insider trading, confidentiality of PVH’s proprietary information, and discrimination and harassment. All of these documents, as well as the charters for our four standing committees, are posted on our website at PVH.com/investor-relations/governance. PVH CORP. 2021 PROXY STATEMENT | 27 | | | | | PVH CORP. 2019 PROXY STATEMENT
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CORPORATE GOVERNANCE VALUES, GOVERNANCE, HUMAN CAPITAL RESOURCES AND CORPORATE RESPONSIBILITY VALUES, GOVERNANCE, HUMAN CAPITAL RESOURCES AND CORPORATE RESPONSIBILITY Throughout our 140 year history, we have been passionate about doing the right thing. Our values — individuality, partnership, passion, integrity and accountability — define who we are as a company and we encourage our associates to embody them every day. As a purpose-led company, we strive to deliver success for all of our stakeholders — from our stockholders to our business partners and the communities and consumers that we serve every day. Upholding Our Values Our commitment to our stockholders goes beyond taking responsible actions to increase stockholder value. We are proud that our efforts in regards to business conduct, inclusivity, human capital and sustainability have resulted in PVH being recognized publicly in a variety of ways. In 2020, we appeared on Fortune magazine’s lists of “100 Best Workplaces for Diversity” and “The World’s Most Admired Companies” (having also appeared in 2019) and, earned a perfect score in the Human Rights Campaign’s (HRC) Corporate Equality Index for the third straight year, in addition to being ranked #19 on Barron’s list of “100 Most Sustainable Companies in America” (our third straight year on the list) and being re-certified as a Great Place to Work in the U.S. Integrity and accountability are pillars in our conduct of business. We maintain a whistleblower reporting system with online and telephone reporting options. The system is operated by an independent third party. There are reporting options available to our associates, workers at our suppliers’ factories, talent used in our marketing shoots, and employees of our joint ventures. The associate option, which supplements internal reporting options, is available in 15 languages and allows for reporting on an anonymous basis (except when prohibited by law). We have a strict non-retaliation policy to protect associates who report suspected misconduct in good faith, as well as those who cooperate in any investigation. Governance We are committed to excellence in corporate governance, regularly reviewing our practices and considering adopting new, and changing existing, governance practices as practices evolve. We moved from a classified Board to annual elections well before it was a common practice and our Audit & Risk Management Committee has had a decades’ long commitment to independence and meticulous oversight. We recently completed a CEO transition that was part of a rigorous, multi-year succession planning process in which we considered both internal and external candidates, which went into its final phases with the hiring of an external candidate and his Corporate Governance How to Contactevaluation and ultimate transition into the Board How to Contactrole starting almost two years ago.We have, in recent years, eliminated (with overwhelming stockholder support) the Board Stockholderssupermajority voting provisions in our Certificate of Incorporation, and other interested parties may send communicationsantitakeover defenses. We amended our Stock Incentive Plan in 2020 (again, with strong stockholder support) to include provisions, such as a cap on annual director awards, not paying dividend equivalents on unvested time-vested awards unless they vest and not accruing dividend equivalents on performance-based awards, and making awards subject to recoupment. These actions are viewed as best governance practices.Human Capital Resources We believe that attracting, developing and retaining diverse talent is critical to our long-term success. To facilitate talent attraction and retention, we strive to create a strong associate experience and a diverse and inclusive workplace, with opportunities for our associates to grow and develop in their careers, supported by competitive compensation, benefits and health and wellness programs, and by programs that build connections between our associates and their communities. Inclusion and Diversity We seek to cultivate an environment of inclusion, belonging and equity for all to build a better workplace, drive innovation in the marketplace and create positive impacts in our communities. We believe we benefit from the unique strengths that each of our associates brings to the workplace, and that a diverse workforce is critical to our long-term success. We strive to improve continuously and make PVH an inclusive work environment through diversity recruitment, development programs, and equitable policies and initiatives. One example is our business resource groups, which are associate-initiated and associate-led groups that foster an inclusive culture and are intended to contribute to the overall success of the business. These groups, which are dedicated to bringing associates together to increase professional and social networks, enhance career development and business acumen, and contribute 28 | PVH CORP. 2021 PROXY STATEMENT CORPORATE GOVERNANCE VALUES, GOVERNANCE, HUMAN CAPITAL RESOURCES AND CORPORATE RESPONSIBILITY to building a more inclusive work environment, are supported by our global and regional Inclusion and Diversity (“I&D”) Councils.
In 2020, we hired a Chief Diversity Officer to lead the development and implementation of an integrated global I&D strategy and work to enhance our ability to attract, develop, retain and promote diverse talent. The diversity of the Board of Directors (or specified groupcontinues to be a focus of individualthe Board refreshment program. The five independent directors suchwho have joined the Board since 2015 include four women and a director who self-identifies as Black and LGBTQIA+. These directors bring with them strong operating and industry experiences, and contribute important and diverse perspectives that better mirror the non-management directorsoverall make-up of our associate and consumer populations. | | | | | | |  | | | | | | Forward Fashion has three strategic focus areas. We aim to: | | | | | | ◾ | reduce our negative impacts to zero; | | | | | | | ◾ | increase positive impacts to 100%; and | | | | | | | ◾ | improve the over one million lives we touch throughout our value chain. | | | | | | | The fashion industry is changing and, at PVH, we recognize our responsibility and opportunity to drive fashion forward — for good. | | | | |
platform and reinforces our long-standing commitment to sustainable business. As a leader in our industry, we believe we can help set the industry standard to create a more sustainable future. This includes protecting our environment, enhancing the lives of our associates and workers across our supply chain, and promoting a culture of diversity and inclusion. We believe these practices make us stronger and sharper as an organization, while also positioning us to better meet our consumers’ needs.
In no small part, Forward Fashion is our strategy to transform how clothes are made and (re)used, and the presiding director). Any such communication shouldactions we will take to move our business and the fashion industry toward a more innovative and responsible future. We are committed to our strategy that supports sustainability and human rights around the world. Talent Management and Development Our talent management and development processes support associate performance and development, talent reviews and succession planning. We regularly review succession plans and conduct assessments to identify talent needs and growth paths for our associates. Developing our associates is a key strategic priority for us, with the focus on developing leaders and preparing the workforce for the future. PVH University, our global internal learning and development program, provides tools and learning opportunities that empower associates to build core competencies and develop skills necessary for improvement and advancement through engaging and impactful learning content. PVH University programs include, among other things, academies for leadership and a Leaders as Teachers program in which our associates instruct on topics in their area of expertise. The PVH University library and curriculum includes its digital academy to build enterprise digital and data literacy, as well as to support digital transformation initiatives. Additionally, our approach to performance and development is designed to motivate our associates to develop, leverage our associate’s strengths and support a coaching and feedback culture, while supporting our talent and succession planning efforts. Corporate Responsibility One of our most meaningful accomplishments was the launch in 2019 of our evolved corporate responsibility strategy: Forward Fashion, our vision for the future that provides a new level of ambition and transparency across our corporate responsibility Through Forward Fashion, we aim to reduce our negative impacts to zero, increase positive impacts to 100%, and improve the over one million lives throughout our value chain. The fashion industry is changing and, at PVH, we recognize our responsibility and opportunity to drive fashion forward — for good. Within these three strategic areas, we are focusing on a total of 15 priorities, each with a specific, measurable and timebound target. Forward Fashion represents a deepening of our commitment to action and a renewed sense of urgency to use our scale to transform ourselves and the industry. Reduce negative impacts to zero To drive fashion forward, we cannot stop at simply reducing our negative impacts; we must work to eliminate them. Our ambition is for our products and business operations to generate zero waste, zero carbon emissions and zero hazardous chemicals, and for our products to be addressedcircular. 2020 Highlights | ◾ | What is believed to be the world’s most powerful currently operational solar roof was installed, with our support, at PVH Europe’s warehouse and logistics center in Venlo, the Netherlands |
| ◾ | We implemented innovative new ways of working and go-to-market processes, leveraging digital selling tools, digital shopping experiences, 3D design and development |
| ◾ | We continued to encourage mills to adopt the Apparel Impact Institute’s Clean by Design program, partnering with expert |
PVH CORP. 2021 PROXY STATEMENT | 29 CORPORATE GOVERNANCE POLITICAL AND LOBBYING ACTIVITIES service providers and factories to improve energy, water and chemical reduction; two of our key factories in India completed seven Clean by Design projects in 2020 Increase positive impacts to 100% Fashion has the power to be a positive force in the world. So when we identify areas where we can make a positive impact for our people and planet, we won’t stop halfway. Our ambition is for 100% of our products and packaging to be sourced ethically and sustainably, and for 100% of our suppliers to respect human rights and be good employers. 2020 Highlights | ◾ | We worked with Fashion for Good and other industry partners to test and explore adopting technologies and solutions to accelerate the development of circular products and sustainable materials, including new forms of material upcycling |
| ◾ | We worked to create and endorse the ILO’s Call to Action to protect garment workers during the pandemic and establish long-term sustainable systems of social protection |
| ◾ | We delivered more than six million units of PPE and, through The PVH Foundation, donated over $2 million toward COVID-19 relief efforts |
Improve the 1M+ lives across our value chain At PVH, we honor the fundamental role our collective workforce has in the success of our business. Our ambition is for our business to improve the lives of the over one million workers across our value chain, focusing on education and opportunities for women and children, ensuring access to clean water for all and continuing to champion inclusion and diversity so everyone can achieve their full potential. 2020 Highlights | ◾ | We undertook several initiatives to advance representation of black, indigenous and people of color (“BIPOC”) within the fashion and creative industries, including through our partnership with the Council of Fashion Designers of America (“CFDA”) with whom we produced the State of Diversity, Equity |
& Inclusion in Fashion report to facilitate next steps to foster a more representative and equitable industry | ◾ | We continued to support factory workers through efforts like our continued implementation of Gap Inc.’s Personal Advancement Career Enhancement (“P.A.C.E.”) program, this time with the launch of a first-ever community program that benefits communities near Ethiopia’s Hawassa Industrial Park, where we have a joint venture shirt factory and some of our suppliers produce fabric and finished goods for us |
| ◾ | We joined the UN Global Compact’s Target Gender Equality initiative to advance gender parity across PVH, our branded businesses, and our industry |
POLITICAL AND LOBBYING ACTIVITIES PVH does not contribute to political candidates, parties or causes. We do occasionally participate in lobbying activities, principally through our membership in industry associations. For example, we were involved in 2020 ongoing efforts not to have apparel and footwear imported into the U.S. from China subjected to additional tariffs. We believe that the additional tariffs are damaging to retail sales, will cause price increases and job losses, and are excessive given the already elevated level of tariffs on these imports as compared to other product categories. We also successfully sought to have the collection of the resulting duties that we pay delayed to help us and other companies navigate the COVID-19 crisis and apply the money to payroll to avoid further furloughs. Additionally, we were involved in lobbying efforts relating to the Board (or individual director) in care of the Secretary ofU.S. pandemic relief legislation. 30 | PVH Corp., 200 Madison Avenue, New York, New York, 10016-3903. Committees
The Board of Directors has four standing committees: Audit & Risk Management; Compensation; Nominating, Governance & Management Development; and Corporate Responsibility. Each committee has a written charter adopted by the Board of Directors that is available on our website at PVH.com/investor-relations/governance.
Audit & Risk Management Committee | | |
Director Compensation Juan Figuereo (Chair),
V. James Marino,
Amy McPhersonSPECIAL NOTE ABOUT THE COVID-19 CRISIS AND THE DIRECTOR COMPENSATION PROGRAM The COVID-19 pandemic had a significant impact on our business, financial condition, cash flows and Edward Rosenfeld
11 meetings results of operations in 2018
| | | The Audit & Risk Management Committee is directly responsible for2020, and continues to have an impact on 2021. We took and continue to take significant actions to mitigate the appointment, compensation, and oversighteffects of the work ofpandemic on PVH and to drive a strong, accelerated recovery plan.We discuss in detail in the outside auditing firm. In addition,Compensation Discussion & Analysis section the Audit & Risk Management Committee helpsmany actions taken by the Board fulfill its oversight functions relating to the quality and integrity of our financial reports by: ■
monitoring our financial reporting process and internal audit function;
■
monitoring the outside auditing firm’s qualifications, independence, and performance; and
■
performing such other activities consistent with its charter and our By-laws as the Committee or the Board deems appropriate.
The Board has determined that all members of the Audit & Risk Management Committee are independent for purposes of audit committee service under NYSE listing standards and SEC rules, and each also qualifies as an “audit committee financial expert,” as defined in SEC rules.
| |
Compensation Committee | | Henry Nasella (Chair),
Craig Rydin and
Amanda Sourry
7 meetings in 2018
| | | The Compensation Committee discharges the Board’s responsibilities relatingin 2020 related to the compensation of our executive officers. The Compensation Committee also has overall responsibility for evaluatingexecutives to limit the financial impact of the pandemic on our operations, help support our liquidity and approving, or recommendingfinancial flexibility, and respond to the Board approval of, all ofvolatility in our compensation plans, policies, and programs, and is responsible for preparingstock price. For these same reasons, the Compensation Committee Report that appears in this Proxy Statement. The Compensation Committee is authorized to delegate limited authority to enable the Chief Executive Officer to make equity awards subject to parameters the Committee establishes. For more information on the CEO’s ability to grant equity awards, see “Compensation Committee Process,” which begins on page 35.Our Chief Executive Officer; Chief Human Resources Officer; Senior Vice President, Global Compensation, Benefits and HR Systems; and General Counsel regularly attend and participate in Compensation Committee meetings, as do representatives of ClearBridge Compensation Group, the Committee’s independent compensation consultant since 2009. For more information on the independent compensation advisor, see “Independent Compensation Consultant,” which begins on page 36.The Board has determined that all members of the Compensation Committee satisfy the independence requirements under NYSE listing standards and SEC rules. Each member also qualifies as an “outside” director, as defined under Section 162(m)Board of the Internal Revenue Code of 1986 (the “Code”), as such section was in effect immediately before it was amended pursuant to the U.S. Tax Cuts and Jobs Act of 2017, and as a “non-employee” director under SEC Rule 16b-3.
There were no interlocks or relationships involving any member of the Compensation Committee during 2018 that are required to be disclosed under the SEC’s rules or proxy regulations.
| |
| | 24 | | | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | |
Corporate Governance Committees
Nominating, Governance & Management Development Committee | | Joseph Fuller (Chair),
Henry Nasella,
Craig Rydin and,
since June 2018,
Amanda Sourry
5 meetings in 2018
| | | The Nominating, Governance & Management Development Committee is charged with:
■
identifying individuals qualified to become Board members;
■
recommending director nominees to the Board;
■
recommending members for each Board committee;
■
recommending the Corporate Governance Guidelines relating to Board service;
■
conducting Chief Executive Officer succession planning, and monitoring succession planning for senior management;
■
monitoring senior management development; and
■
overseeing Board evaluations.
The Board has determined that all members of the Nominating, Governance & Management Development Committee satisfy the independence requirements under NYSE listing standards.
| |
Corporate Responsibility Committee | | G. Penny McIntyre (Chair),
Mary Baglivo and
Brent Callinicos
4 meetings in 2018
| | | The Corporate Responsibility Committee is charged with acting in an advisory capacity to the Board and managementDirectors took comparable actions with respect to policies and strategiestheir own compensation. More specifically:►The directors agreed to forego cash fees for an unspecified period during the pandemic until it was determined by them that affect PVH’s role as a socially responsible organization. The Committee also receives reports on our Inclusion & Diversity program, PVH University, The PVH Foundation (our charitable and philanthropic organization), our business resource groups (affinity groups for working parents, Black associates, membersforbearance was no longer necessary. Ultimately, the directors forfeited approximately one-half of the LGBTQ communityannual cash retainer and other communities within PVH), and other ways we advance our corethe applicable committee fees that they otherwise would have received. ► Stock compensation (consisting of RSUs) was granted in two tranches. The first tranche was granted in June when annual grants typically are made but at grant date values much lower than 2019 values. The Board has determined that all memberssecond tranche was granted in September. The combined value of the Corporate Responsibility Committee are independent under NYSE listing standards;June and September grants was equal to the listing standards do not require committee members to be independent. | directors’ standard annual grant value. |
| | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | | | 25 | | |
Director Compensation
Annual Retainers
ANNUAL RETAINERSNon-employee directors are paid annually in a combination of cash and restricted stock units, asunits. The current director compensation package, along with the reduced amounts approved for 2020, are shown below. | Recipient | | | TypeValue and form of payment | | 2020 reduced value paid or granted | | | | | | Each non-employee director | | Non-Employee Director | $85,000,95,000, in cash | | $51,458, in cash | | | | | | Each non-employee director | | Non-Employee Director | RSUs, settled in shares of our common stock with a value of approximately $145,000$160,000 on the grant date1 (fully vesting on the first anniversary of grant) | | ◾ | No change in total value (or vesting) but the grant was made in two tranches. | Chairperson◾ | The first grant was made in the same number of RSUs as were granted in 2019 but at a significantly lower value; the grant date stock price was $90.43 in 2019 and $49.72 in 2020. | | | | | | | Chair of The Audit & Risk Management Committee | | | $40,000, in cash | | $21,667, in cash | | | | | | Other membersMembers of theThe Audit & Risk Management Committee | | | $20,000, in cash | | $10,833, in cash | Chairperson | | | | | Chair of theThe Compensation Committee | | | $35,000, in cash | | $18,958, in cash | | | | | | Other membersMembers of theThe Compensation Committee | | | $15,000, in cash | | $8,125, in cash | Chairpersons | | | | | Chairs of theThe Nominating, Governance & Management Development Committee and the Corporate Responsibility Committee | | | $25,000, in cash | | $13,542, in cash | Other members of the Nominating, Governance & Management Development Committee and the | | | | | | And The Corporate Responsibility Committee | | | | | | | | | | | Other Members of The Nominating, Governance & | $10,000, in cash | | $5,417, in cash | | Management Development Committee | | | | | | And The Corporate Responsibility Committee | | | | | | | | | | Presiding director | | Director | $30,000,40,000, in cash | | $21,667, in cash | | | | | |
PVH CORP. 2021 PROXY STATEMENT | 31 Each of our non-employee directors who was elected on June 21, 2018 received a grant of 940 RSUs.
In addition to these annual retainers, non-employeeDIRECTOR COMPENSATION STOCK OWNERSHIP GUIDELINES Non-employee directors are reimbursed for their meeting-related expenses. Directorsexpenses in addition to receiving the compensation disclosed above.Non-employee directors who join the Board after our annual meeting are paid a pro rata portion of the applicable fees for the year but do not receive an award of RSUs. Therefore, Allison Peterson, who joined the Board on January 26, 2021, and George Cheeks, who joined the Board on March 22, 2021, did not receive RSUs in 2020. We do not pay fees or make equity grants to non-employee directors who are designated for election by a stockholder having director nomination rights. We currently have no such directors. Our non-employee directors receive very limitednominal benefits and perquisites. They are entitled to the same discounts at our retail stores as are available to all associates. In addition, we provide business accident travel insurance for directors and their spouses, which is at no additional cost to us because we maintain coverage for our associates globally. Finally, non-employee directors are eligible to participate at their own cost in our group umbrella insurance program, which may offer more favorable rates than they can obtain on their own. Stock Ownership Guidelines
STOCK OWNERSHIP GUIDELINES Our non-employee directors are required under our stock ownership guidelines to own shares of our common stock with an aggregate value equal to five times the standard annual cash retainer payable to directors. New directors have five years from the date they are elected to attain this ownership level. All of our non-employee directors, other than the two directors who have served onjoined the Board for five years or moreduring calendar year 2021, are currently in compliance with this requirement.requirement as of the date of this Proxy Statement. Our stock ownership guidelines require directors to hold 50% of the shares received upon the vesting of their equity awards (after payment of taxes) until they satisfy the guideline. There are no stock ownership guidelines for directors designated for election by a stockholder having director nomination rights, of which we currently have none. | | 26 | | | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | |
Director Compensation Stock Ownership Guidelines
2020 COMPENSATIONThe following table providessets forth the information concerning the compensation of all individuals who served as directors during any portion of 2018,2020, other than Mr. Chirico, whose compensation as an executive is set forth on the Summary Compensation Table on page 51. | Name | | | Fees Earned or
Paid in Cash1
($) | | | Stock
Awards2,3
($) | | | Option
Awards3
($) | | | All Other
Compensation
($) | | | Total
($) | | | Mary Baglivo | | | | | 102,500 | | | | | | 145,136 | | | | | | N/A | | | | | | N/A | | | | | | 247,636 | | | | Brent Callinicos | | | | | 95,000 | | | | | | 145,136 | | | | | | N/A | | | | | | N/A | | | | | | 240,136 | | | | Juan R. Figuereo | | | | | 125,000 | | | | | | 145,136 | | | | | | N/A | | | | | | N/A | | | | | | 270,136 | | | | Joseph B. Fuller | | | | | 110,000 | | | | | | 145,136 | | | | | | N/A | | | | | | N/A | | | | | | 255,136 | | | | V. James Marino | | | | | 105,000 | | | | | | 145,136 | | | | | | N/A | | | | | | N/A | | | | | | 250,136 | | | G. Penny McIntyre | | | | | 110,000 | | | | | | 145,136 | | | | | | N/A | | | | | | N/A | | | | | | 255,136 | | | Amy McPherson | | | | | 105,000 | | | | | | 145,136 | | | | | | N/A | | | | | | N/A | | | | | | 250,136 | | | | Henry Nasella | | | | | 160,000 | | | | | | 145,136 | | | | | | N/A | | | | | | N/A | | | | | | 305,136 | | | | Edward R. Rosenfeld | | | | | 105,000 | | | | | | 145,136 | | | | | | N/A | | | | | | N/A | | | | | | 250,136 | | | | Craig Rydin | | | | | 110,000 | | | | | | 145,136 | | | | | | N/A | | | | | | N/A | | | | | | 255,136 | | | | Amanda Sourry | | | | | 105,000 | | | | | | 145,136 | | | | | | N/A | | | | | | N/A | | | | | | 250,136 | | |
1
The61. Mr. Figuereo, who retired from the Board in June 2020, did not receive any cash compensation because the payment of fees earned or paid in cashwas suspended during the portion of 2020 that he served. He also did not receive a stock award because he retired prior to the 2020 grants. The cash fees shown below reflect the 46% reduction that was effectively approved by the directors consistto participate commensurately with management and other associates in the compensation adjustments made to preserve cash and reduce costs in response to the negative impacts of the following:
| Name | | | Annual
Director Fees
($) | | | Committee
Chair Fees
($) | | | Committee
Member Fees
($) | | | Presiding
Director Fee
($) | | | Total
($) | | | Mary Baglivo | | | | | 85,000 | | | | | | N/A | | | | | | 17,500 | | | | | | N/A | | | | | | 102,500 | | | | Brent Callinicos | | | | | 85,000 | | | | | | N/A | | | | | | 10,000 | | | | | | N/A | | | | | | 95,000 | | | | Juan R. Figuereo | | | | | 85,000 | | | | | | 40,000 | | | | | | N/A | | | | | | N/A | | | | | | 125,000 | | | | Joseph B. Fuller | | | | | 85,000 | | | | | | 25,000 | | | | | | N/A | | | | | | N/A | | | | | | 110,000 | | | | V. James Marino | | | | | 85,000 | | | | | | N/A | | | | | | 20,000 | | | | | | N/A | | | | | | 105,000 | | | G. Penny McIntyre | | | | | 85,000 | | | | | | 25,000 | | | | | | N/A | | | | | | N/A | | | | | | 110,000 | | | Amy McPherson | | | | | 85,000 | | | | | | N/A | | | | | | 20,000 | | | | | | N/A | | | | | | 105,000 | | | | Henry Nasella | | | | | 85,000 | | | | | | 35,000 | | | | | | 10,000 | | | | | | 30,000 | | | | | | 160,000 | | | | Edward R. Rosenfeld | | | | | 85,000 | | | | | | N/A | | | | | | 20,000 | | | | | | N/A | | | | | | 105,000 | | | | Craig Rydin | | | | | 85,000 | | | | | | N/A | | | | | | 25,000 | | | | | | N/A | | | | | | 110,000 | | | | Amanda Sourry | | | | | 85,000 | | | | | | N/A | | | | | | 20,000 | | | | | | N/A | | | | | | 105,000 | | |
2
The amounts are the aggregate grant date fair value of RSUs granted in 2018, which were the only equity awards granted topandemic on us and our directors in 2018. The fair value is equal to $154.40, the closing price of our common stock on the date of grant, multiplied by the number of RSUs granted.
businesses.| | | | | | | Total Compensation | | | Fees Earned or | Stock | Option | All Other | | That Would Have Been | | | Paid in Cash1 | Awards2,3 | Awards3 | Compensation | Total | Paid Absent Cash | | | ($) | ($) | ($) | ($) | ($) | Fee Forbearance ($) | | | | | | | | | | MARY BAGLIVO | 56,875 | 160,150 | N/A | N/A | 217,025 | 265,150 | | | | | | | | | | BRENT CALLINICOS | 56,875 | 160,150 | N/A | N/A | 217,025 | 265,150 | | | | | | | | | | JOSEPH B. FULLER | 65,000 | 160,150 | N/A | N/A | 225,150 | 280,150 | | | | | | | | | | V. JAMES MARINO | 62,291 | 160,150 | N/A | N/A | 222,441 | 275,150 | | | | | | | | | | G. PENNY MCINTYRE | 65,000 | 160,150 | N/A | N/A | 225,150 | 280,150 | | | | | | | | | | AMY MCPHERSON | 67,708 | 160,150 | N/A | N/A | 227,858 | 285,150 | | | | | | | | | | HENRY NASELLA | 86,667 | 160,150 | N/A | N/A | 246,817 | 320,150 | | | | | | | | | | ALLISON PETERSON4 | 1,833 | 0 | N/A | N/A | 1,833 | 1,833 | | | | | | | | | | EDWARD R. ROSENFELD | 73,125 | 160,150 | N/A | N/A | 233,275 | 295,150 | | | | | | | | | | CRAIG RYDIN | 59,583 | 160,150 | N/A | N/A | 219,733 | 270,150 | | | | | | | | | | AMANDA SOURRY | 75,833 | 160,150 | N/A | N/A | 235,983 | 300,150 | | | | | | | | | | Former Director | | | | | | | | | | | | | | | | JUAN R. FIGUEREO5 | 0 | N/A | N/A | N/A | 0 | 45,069 | | | | | | | | |
32 | PVH CORP. 2021 PROXY STATEMENT | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | | | 27 | | |
DIRECTOR COMPENSATION Director Compensation2020 COMPENSATION Stock Ownership Guidelines 3
The number of unexercised stock options and aggregate number of unvested RSUs for each of our directors as of February 3, 2019, were as follows:
Name1 | The fees earned or paid in cash to the directors consist of the following: |
| | Annual | Committee | Committee | Presiding | | | | Director Fee | Chair Fees | Member Fees | Director Fee | Total | | | ($) | ($) | ($) | ($) | ($) | | | | | | | | | MARY BAGLIVO | 51,458 | N/A | 5,417 | N/A | 56,875 | | | | | | | | | BRENT CALLINICOS | 51,458 | N/A | 5,417 | N/A | 56,875 | | | | | | | | | JOSEPH B. FULLER | 51,458 | 13,542 | N/A | N/A | 65,000 | | | | | | | | | V. JAMES MARINO | 51,458 | N/A | 10,833 | N/A | 62,291 | | | | | | | | | G. PENNY MCINTYRE | 51,458 | 13,542 | N/A | N/A | 65,000 | | | | | | | | | AMY MCPHERSON | 51,458 | N/A | 16,250 | N/A | 67,708 | | | | | | | | | HENRY NASELLA | 51,458 | N/A | 13,542 | 21,667 | 86,667 | | | | | | | | | ALLISON PETERSON | 1,583 | N/A | 250 | N/A | 1,833 | | | | | | | | | EDWARD R. ROSENFELD | 51,458 | 21,667 | N/A | N/A | 73,125 | | | | | | | | | CRAIG RYDIN | 51,458 | N/A | 8,125 | N/A | 59,583 | | | | | | | | | AMANDA SOURRY | 51,458 | 18,958 | 5,417 | N/A | 75,833 | | | | | | | | | Former Director | | | | | | | | | | | | | | JUAN R. FIGUEREO | 0 | N/A | N/A | N/A | 0 | | | | | | | |
| 2 | The amounts are the aggregate grant date fair value of RSUs granted to our directors in June and September 2020. The fair value is equal to the closing price of our common stock on each grant date, multiplied by the number of RSUs granted on that date. In the case of the June 2020 grant, the number of RSUs granted was the same number as in 2019 but at a significantly lower value; the grant date stock price was $90.43 in 2019 and $49.72 in 2020. The grant date value for the September 2020 grant was $67.05. |
| 3 | The number of unexercised stock options and aggregate number of unvested RSUs for each of our directors as of January 31, 2021, were as follows: |
| Option Awards
(#) | | | Stock Awardsa
(#) | | Mary Baglivo | (#) | (#) | | | | | MARY BAGLIVO | N/A | | | | | | 940 | | 2,846 | Brent Callinicos | | | | BRENT CALLINICOS | N/A | | | | | | 940 | | 2,846 | Juan R. Figuereo | | | | JOSEPH B. FULLER | N/A | | | | | | 6,12926,696b | | | Joseph B. Fuller | | | | V. JAMES MARINO | N/A | | | | | | 22,080c | | 2,846 | V. James Marino | | | | G. PENNY MCINTYRE | N/A | | | | | | 940 | | 9,622c | G. Penny McIntyre
| | | | AMY MCPHERSON | N/A | | | | | | 5,006d | | 2,846 | Amy McPherson
| | | | HENRY NASELLA | N/A | | | | | | 940 | | 26,696b | Henry Nasella | | | | ALLISON PETERSON | N/A | | | | | | 22,080c | | N/A | Edward | | | EDWARD R. Rosenfeld | | | | ROSENFELD | N/A | | | | | | 6,170e | | 10,786d | Craig Rydin | | | | CRAIG RYDIN | N/A | | | | | | 12,028f | | 16,644e | Amanda Sourry | | | | AMANDA SOURRY | N/A | 2,846 | | | | | Former Director | | | | 940 | | | JUAN R. FIGUEREO | N/A | N/A |
a
Stock awards consist of unvested restricted stock units, which vest on the first anniversary of the date of grant.
b
Settlement of 5,189 of these outstanding awards has been deferred pursuant to the director’s election, as permitted under our 2006 Stock Incentive Plan.
c
Settlement of 21,140 of these outstanding awards has been deferred pursuant to the director’s election, as permitted under our 2006 Stock Incentive Plan.
d
Settlement of 4,066 of these outstanding awards has been deferred pursuant to the director’s election, as permitted under our 2006 Stock Incentive Plan.
e
Settlement of 5,230 of these outstanding awards has been deferred pursuant to the director’s election, as permitted under our 2006 Stock Incentive Plan.
f
Settlement of 11,088 of these outstanding awards has been deferred pursuant to the director’s election, as permitted under our 2006 Stock Incentive Plan.
| a | Stock awards consist of unvested restricted stock units, which vest on the first anniversary of the date of grant. | | b | Settlement of 23,850 of these outstanding awards has been deferred pursuant to the director's election, as permitted under our Stock Incentive Plan. | | c | Settlement of 6,776 of these outstanding awards has been deferred pursuant to the director's election, as permitted under our Stock Incentive Plan. | | d | Settlement of 7,940 of these outstanding awards has been deferred pursuant to the director's election, as permitted under our Stock Incentive Plan. | | e | Settlement of 13,798 of these outstanding awards has been deferred pursuant to the director's election, as permitted under our Stock Incentive Plan. 4 Ms. Peterson joined the Board on January 26, 2021. |
| 4 | Ms. Peterson joined the Board on January 26, 2021. | | 5 | Mr. Figuereo retired from the Board effective June 18, 2020. |
PVH CORP. 2021 PROXY STATEMENT | 33 | | 28 | | | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | |
Advisory Vote on Executive Compensation We are asking stockholders to provide advisory approval of the compensation of our Named Executive Officers, as described in the Compensation Discussion & Analysis and Executive Compensation Tables sections that follow. While the results of this vote are non-binding, the Compensation Committee intends to consider carefully those results when making future compensation decisions. The following is a summary of key points that stockholders may wish to consider in connection with their voting decision. We encourage you to review the entire Compensation Discussion and Analysis for detailed information on our executive compensation program. Our compensation program emphasizes performance-based variable pay and equity performance to ensure a rigorous pay-for-performance culture.A significant majority (approximately 74%70% to 90% based on target level compensation) of each NEO’s compensation package consists of short-term and long-term awards that pay out only upon the achievement of specific financial targets, and equity awards that are linked to increases in stock price and stockholder value over time. | | | | The Board of Directors recommends a vote FOR approval of the compensation paid to our Named Executive Officers. | |
Proxies received in response to this solicitation will be voted FOR this proposal unless the stockholder specifies otherwise.
Our performance targets are meaningful and are designed to encourage our executives to perform at high levels. We must achieve earnings per share that falls within the earnings per share guidance range that management provides to the financial market at the beginning of each fiscal yearIn order for bonuses to pay out bonuses at the target level, and business unit executiveswe must achieve earnings goals for their respective business units. In both cases, the goals aregenerally based on the annual budget reviewed and approved by the Board of Directors,Directors. Due to the temporary closure of virtually all of our stores, as well as those of our customers and franchisees, at the beginning of the pandemic, bonus awards were not made until most stores were reopened and the target levels typically are established aboveperformance goals were based on business plans reviewed with the prior year’s performance. Board at the time.Our compensation program reflects sound pay practices. ■
We generally do not provide our NEOs with any guarantees as to salary increases, bonuses, incentive plan awards or equity compensation.
■
Our perquisites are very modest and do not include tax reimbursements or “gross-ups” for severance payments.
■
We have adopted stock ownership guidelines (including holding requirements until ownership levels are achieved) for our NEOs that are intended to align their long-term interests with those of our stockholders and to encourage a long-term focus.
| ◾ | We generally do not provide our NEOs with any guarantees as to salary increases, bonuses, incentive plan awards or equity compensation. |
| ◾ | Our perquisites are modest and do not include tax reimbursements or “gross-ups” for severance payments. |
| ◾ | We have adopted stock ownership guidelines (including holding requirements until ownership levels are achieved) for our NEOs that are intended to align their long-term interests with those of our stockholders and to encourage a long-term focus. |
Our total compensation packages are comparable to our peers.When we establish compensation packages each year, we compare the total compensation that each NEO can earn to compensation for the most comparable executives at the companies in our peer group. We confirm the accuracy of such comparisons by reviewing actual amounts paid or expected to be paid at the end of each year. The compensation package for our Chief Executive Officer, consistentConsistent with our emphasis on pay for performance, target compensation for our Chief Executive Officer and, to a lesser extent, target compensation for our other NEOs, is heavily weighted on long-term and performance-based elements. Compensation packages for our other NEOs are also heavily weighted on these elements, although not to the same degree as the CEO’s compensation package. In all cases, the weighting is consistent with those of their counterparts at our peers. Our compensation program works as intended.We believe the information disclosed in this Proxy Statement, in particular the Compensation Discussion & Analysis and Executive Compensation Tables sections, demonstrates that our executive compensation program is well-designed, is working as intended, emphasizes pay for performance without encouraging undue risk, incorporates sound corporate governance practices, and foregoes elements that are considered poor pay practices. The Board submits the following resolution to stockholders to indicate their non-binding advisory approval: | | RESOLVED, that the compensation paid to PVH’s Named Executive Officers, as disclosed in this Proxy Statement pursuant to the rules of the SEC, including the Compensation Discussion & Analysis, compensation tables, and any related narrative discussion, is hereby APPROVED. |
34 | PVH CORP. 2021 PROXY STATEMENT | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | | | 29 | | |
Compensation
Discussion & Analysis CONTENTS | This section (“CD&A”) explains our compensation program for the following individuals, who we refer to as our Named Executive Officers, or NEOs: | | | | | | | | | Years of | | | NEO | Age | Service | Title | | EMANUEL CHIRICO | 63 | 27 | Chairman and Former Chief Executive Officer, PVH Corp.1 | | MICHAEL A. SHAFFER | 58 | 30 | Executive Vice President and Chief Operating & Financial Officer, PVH Corp. | | STEFAN LARSSON | 46 | 2 | Chief Executive Officer, PVH Corp.1 | | CHERYL ABEL-HODGES | 57 | 14 | Chief Executive Officer, Calvin Klein | | MARTIJN HAGMAN | 46 | 122 | Chief Executive Officer, Tommy Hilfiger Global and PVH Europe3 |
| 1 | For all of 2020, Mr. Chirico was the Chief Executive Officer and Mr. Larsson was the President of PVH Corp. Mr. Larsson succeeded Mr. Chirico, who remains Chairman of the Board, effective February 1, 2021. |
| 2 | Includes service with Tommy Hilfiger prior to our 2010 acquisition. |
| 3 | Mr. Hagman was promoted to his current role on June 2, 2020. |
This section explains
EXECUTIVE SUMMARY 2020 PERFORMANCE HIGHLIGHTS 2020 was one of the most challenging years in history on a global basis from a geopolitical, economic and public health perspective due to the COVID-19 pandemic. Our businesses, our compensation programpeople and our communities all were impacted in significant ways. Nevertheless, our teams rallied together to navigate the crisis and position PVH to emerge in a stronger position. PVH CORP. 2021 PROXY STATEMENT | 35 COMPENSATION DISCUSSION & ANALYSIS 2020 PERFORMANCE HIGHLIGHTS
First, we prioritized the health and well-being of our associates, consumers, business partners and the communities where we operate. Virtually all our stores globally were closed for a significant portion of the first quarter of 2020, and we experienced additional temporary closures throughout the year (and continue to experience them in 2021) as local orders or our health protocols dictated. Our office locations have largely been closed throughout the pandemic, with only essential workers or, as restrictions relaxed, workers who needed to be in the office, allowed. Remote working continues to be the rule for the following individuals, whovast majority of our office-based associates. Our warehouse and distribution centers, which are key to driving the businesses that were operating — particularly our booming digital commerce businesses (direct, with traditional retail partners, and with pure play customers) — operated with reduced staffing and with health protocols in place. Second, we refertook actions to asaddress the changes in our Named Executive Officers or NEOs: | NEO | | | Age | | | Years of
Service | | | Title | | | EMANUEL CHIRICO | | | 61 | | | 25 | | | Chairman and Chief Executive Officer, PVH Corp. | | | MICHAEL A. SHAFFER | | | 56 | | | 28 | | | Executive Vice President and Chief Operating & Financial Officer, PVH Corp. | | | FRANCIS K. DUANE | | | 62 | | | 20 | | | Vice Chairman, PVH Corp. and Chief Executive Officer, Heritage Brands | | | DANIEL GRIEDER | | | 57 | | | 221 | | | Chief Executive Officer, Tommy Hilfiger Global and PVH Europe | | | STEVEN B. SHIFFMAN | | | 61 | | | 26 | | | Chief Executive Officer, Calvin Klein | |
1
Includes service with Tommy Hilfiger priorbusinesses and our business needs, and to our 2010 acquisition,protect the company. Some of these actions are highlighted in the timeline above, as well as service as an independent sales agentdiscussed in this CD&A.36 | PVH CORP. 2021 PROXY STATEMENT COMPENSATION DISCUSSION & ANALYSIS 2020 PERFORMANCE HIGHLIGHTS The impact of the pandemic on our business is clear. With the extensive temporary store closures, the near complete cessation of international tourist travel (which accounts for Tommy Hilfiger.
Executive Summary
2018 Performance Highlights
Our 2018 results exceeded our plans and our long-term growth targets despite weaker than expected results in our Calvin Klein business, several department store bankruptcies and continued store closings, geopolitical pressures and a weakening macro-economic picture. We believe the abilitysignificant portion of our teams to over-deliver against our Board-approved financial plans against this backdrop demonstrates the “Power of PVH” — the combination of our iconic brands, our talented teamsU.S. retail store revenue), and the wide rangerestrictions on store operations as stores reopened, our 2020 revenues declined 28% to $7.1 billion and we had a loss per share of global growth opportunities$(15.96) (loss per share on a non-GAAP basis of $(1.97)*) compared to earnings per share of $5.60 ($9.54* on a non-GAAP basis) in front of us.
2019.There were bright spots. We believe that significant opportunities for growth remain, as we continuesupercharged our digital business, including acting nimbly to execute on our strategic priorities with an emphasis on driving long-term stockholder value creation. We expect these priorities, which include global expansion, a focus on driving consumer experience, investing in our operating platforms,use inventories from closed stores and using our own warehouses to supplement the work of our third-party digital commerce fulfillment provider. These actions led to our strongest-ever digital sales growth of 43%, including 69% growth on our own sites, while driving a significant improvement in our profitability in the channel. Our Asia business was very strong, led by our performance in China. China emerged first from the pandemic and built upon 2019 performance with revenue through digital channels growing 55% and, when fully open, our European businesses drove high consumer and retailer demand and clear market share gains. We also focused on rightsizing our cost base and tightly managing our discretionary spending to offset the impact store closures and sales pressure around the world would have on 2020 profitability. Another top priority was maintaining the health of our balance sheetsheet. We prudently managed inventories to ensure our financial flexibility, and we acted quickly and opportunistically to raise capital to ensure our sound financial position. We ended fiscal 2020 with over $3 billion in liquidity and $3.6 billion in debt. We entered 2021 in a clean inventory position (down 12% vs. 2019), despite the resurgence of infection rates and a new round of lockdowns during the all-important holiday sales period at the end of 2020. In the first quarter of 2021, we determined we had sufficient liquidity, and business and operations had become sufficiently settled to permit us to make voluntary payments totaling $500 million under our senior credit facilities and move towards returning to pre-pandemic leverage levels. Importantly, we also initiated measures to drive returns, will enable usan accelerated recovery, which remains the current focus throughout our businesses and regions. * Reconciliations to attain top line and bottom line growth over the next several years. | | 30 | | | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | |
CD&A EXECUTIVE SUMMARY 2018 Performance Highlights
$9.65 | | | | $9.7B | | Earnings$(15.96) | | | | Loss per share
compared to $6.84EPS of $5.60 in
2017 2019 ($9.60(1.97)* vs. $7.94*
$9.54* on a non-GAAP basis) | | | | | $(1.1)B | | In revenue, an 8% increase over 2017. The revenue increase included:■
A 12% increase (10%* on a constant currency basis) in our Tommy Hilfiger business, driven principally by strong performance in all regions
| | Loss before interest and channels.
■
An 8% increase (7%* on a constant currency basis) in our Calvin Klein business, driven by growth in Europe and Asia, as well as our North America wholesale business.
■
A 1% increase in our Heritage Brands business.
| |
| $892M | | | | Earningstaxes compared to earnings before interest and taxes (“EBIT”) increased to $892 million, inclusive of a $5 million positive impact due to foreign currency translation, from $632$559 million in 2017. EBIT on a non-GAAP basis for 2018 was $971 million*, inclusive of a $5 million positive impact due to foreign currency translation,2019. | | |
| | | $7.1B | | | | In revenue compared to $864 million* on$9.9 billion in 2019. The revenue decrease reflects: | | | ◾ | A 23% decrease in the Tommy Hilfiger business compared to 2019. | | | | ◾ | A 28% decrease in the Calvin Klein business compared to 2019. | | | | ◾ | A 44% decrease in the Heritage Brands business compared to 2019, which included a non-GAAP basis in 2017.12% decline resulting from the sale of our licensed Speedo North America business. | | |
Our earnings per share, EBIT, and revenue performance over the past three years was as follows:
* Reconciliations to GAAP amounts appear on Exhibit A. PVH CORP. 2021 PROXY STATEMENT | 37 | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | | | 31 | | |
COMPENSATION DISCUSSION & ANALYSIS 2020 COMPENSATION HIGHLIGHTS
2020 COMPENSATION HIGHLIGHTS | | | | | | SPECIAL NOTE ABOUT THE COVID-19 CRISIS AND THE 2020 EXECUTIVE COMPENSATION PROGRAM | | | | | The COVID-19 pandemic had a significant impact on our business, financial condition, cash flows and results of operations in 2020, and continues to have an impact on 2021. We took and continue to take significant actions to mitigate the effects of the pandemic on PVH and to drive a strong, accelerated recovery plan. | | | | | Many of the actions taken in 2020 related to compensation and payroll, including temporary salary reductions for approximately 250 senior executives and leaders, furloughs in North America and Australia that lasted up to six months, reduced work hours (and proportionate pay) in North America that were in place for some associates up to nine months, salary reductions for virtually all associates in North America and Asia who were not furloughed or put on reduced hour schedules, and applying for governmental salary subsidies. Ultimately, we made workforce reductions in all regions. The following actions and decisions pertain to the compensation of our NEOs for 2020: | | | | | | | | | | | ► | Mr. Chirico was not paid any salary from mid-April through mid-July. | | | | ► | The other NEOs each had a base salary reduction of 25-35% for three months. | | | | ► | There were no salary increases for 2020, other than for Mr. Hagman in connection with his promotion. | | | | ► | Annual bonus payout opportunities at each level of performance were set 50% lower than provided in each NEO’s standard compensation package. | | | | ► | Stock awards consisting of stock options, RSUs and PSUs were granted in two tranches. The first tranche was granted in April when annual grants typically are made but at grant date values much lower than 2019 values. The second tranche was granted in September. The combined value of the April and September grants of each type of award was equal to the standard annual grant value for all participants, including the NEOs. | | | | | | | | | | Although our executive compensation program retained its overall structure, we did make significant adjustments in response to the impact of the pandemic, particularly with respect to salaries and bonuses of our NEOs. In addition to the actions and decisions discussed above: | | | | | | | ◾ | Bonus measures were changed from EPS and, for NEOs who lead business units, business unit operating income to corporate and business unit EBITDA, each as adjusted for certain exclusions. This change was made because cash generation and reinforcing our financial position were particularly important at that time and in the near term, and EBITDA more accurately captures those goals. | | | | | | | ◾ | We delayed our bonus goal-setting process to the second quarter. This allowed time for our stores to reopen after the initial round of temporary closures and for us to assess performance, as well as to assess the impact the pandemic was having on our business and might continue to have for the remainder of the year. | | | | | | | ◾ | The threshold and maximum performance goals were set at significantly wider ranges above and below target performance than has been our typical practice. This addressed the extremely volatile and uncertain business environment. Threshold performance required us to “break even” for the nine-month measurement period, while the maximum goal required performance at the upper end of the business plans discussed with the Board at that time. | | | | | | | | | |
38 | PVH CORP. 2021 PROXY STATEMENT CD&A EXECUTIVE SUMMARY COMPENSATION DISCUSSION & ANALYSIS 2020 COMPENSATION HIGHLIGHTS 2018 Compensation Highlights
2018 Compensation Highlights
The following table below shows the principal elements of the compensation program for our Named Executive Officers and the valuevalues attributable to each element for 2018,2020, with the following conditions: ■
Base salaries are shown at the highest level for the year for NEOs who received mid-year salary increases.
■
Annual bonuses are shown at the target level payouts.
■
RSUs, stock options and performance share units (“PSUs”) are shown at the grant date value.
Some of the compensation figures discussed in this section will not be the same as the figures provided in the Executive Compensation Tables section that begins on page 51 because of the foregoing conditions or for reasons otherwise explained.1
Mr. Duane’s restricted stock unit grant was subject to a three-year ratable vesting period, vesting on each of the first three anniversaries of the grant date pursuant to the terms of his employment agreement. Please see discussion on page 41.
2
Awards granted to US-based NEOs prior to 2018 were subject to achievement of a financial goal intended to satisfy the condition for deductibility under Section 162(m) of the Code. The measure was not included on awards made in 2018 and is not expected to be used in the future, as the U.S. Tax Cuts and Jobs Act of 2017 eliminated the deduction for performance-based compensation under Section 162(m).
3
Mr. Grieder’s salary and bonus are paid in euros and have been converted from Swiss francs at a franc-to-euro exchange rate of 0.8775, which was the closing rate on February 1, 2019, the last business day of 2018. See “Special note about compensation for Mr. Grieder” on page 34.
| ◾ | Base salaries are shown at their full annual rate even though all the NEOs agreed to a temporary salary reduction; the effective base salaries (i.e., taking into consideration the temporary reductions) paid during 2020 are shown on page 46. |
| ◾ | Annual bonuses are shown at the 2020 target-level payouts (i.e., 50% below standard target opportunity). |
| ◾ | RSUs, stock options and PSUs, which were granted in two tranches, are shown at the aggregate grant date values. |
| 1 | Equity awards typically are made in April of each year. However, annual grants for 2020 were made in two tranches, the first in April and the second in September. This approach was taken to ensure fairness to stockholders given the volatility of our stock price during the year. See page 51. |
| 2 | Awards to the Chief Executive Officer are subject to an additional one-year holding period for the after-tax shares delivered when the award pays out. |
| 3 | The amounts shown are the payout opportunity at target performance levels. Bonus payout opportunities at all performance levels were 50% lower than the opportunities provided in each NEO’s standard compensation package. |
| 4 | Mr. Larsson received a payment of $1,440,000 in December 2020, which represented 80% of our good faith estimate of his 2020 bonus, as provided in his employment agreement. The remaining balance was paid in April 2021, at the same time as bonuses were paid to the other NEOs who received payouts. See page 66. |
| 5 | Represents Mr. Hagman’s new base salary and aggregate bonus opportunity approved in connection with his promotion to Chief Executive Officer, Tommy Hilfiger Global and PVH Europe. |
| 6 | Includes (a) an additional award of RSUs and grants of stock options and PSUs made in June 2020 in connection with Mr. Hagman’s promotion and (b) a special grant of RSUs made to Mr. Hagman. See page 51. The special RSU grant vests 25% on the first and second anniversaries of the grant date and 50% on the third anniversary of the grant date. |
PVH CORP. 2021 PROXY STATEMENT | 39 | | 32 | | | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | |
COMPENSATION DISCUSSION & ANALYSIS 2020 COMPENSATION HIGHLIGHTS CD&A EXECUTIVE SUMMARY Compensation Best Practices Compensation Best Practices
We follow the practices described below because we believe they align our compensation program, and the interests of our NEOs, with the interests of our stockholders and avoid excessive risk. | Things We Do | | | Things We Do Not Do | |  We regularly engage with stockholders regarding our compensation practices.
The Chairman of the Compensation Committee is available at our Annual Meeting to answer questions.
Most executive compensation varies based on long-term performance of PVH and our common stock.
Performance targets for our incentive plans are rigorous but do not encourage excessive risk.
We use different financial metrics as performance measures for annual bonuses and PSU awards so executives focus on the business as a whole and not on any one particular metric.
We regularly reassess the financial measures used with our performance-based awards, as well as the mix of elements that make up our compensation program, to ensure they promote increases in stockholder value and align with investor priorities.
Our NEOs are subject to stringent stock ownership guidelines — 6x base salary for the CEO and 3x base salary for the other NEOs — and there are limits on the amount of stock they can dispose of before they satisfy the applicable guideline.
Our change-in-control arrangements are “double trigger.”
We provide comprehensive and transparent disclosure of our compensation program and each NEO’s compensation package, with thorough explanations of performance measures, goal setting, targets, and payouts.
We have a Clawback Policy that allows us to recover or cancel incentive compensation awards and payouts in the event of a restatement of our financial statements or a material breach of a material company policy.3
The Compensation Committee consists of threefour independent directors who have engaged the services of an independent compensation advisor.
Awards under our incentive plans are capped to prevent undue efforts to surpass the target for any particular metric.
We conduct an annual risk assessment of our executive compensation program.
Our compensation peer group is realistic, comprising a mix (by revenue) of larger and smaller companies in our industry.
| | |  We do not makegrant awards to our NEOs solely based onfor retention purposes or to replace awards that did not or are not expected to pay out.
We do not grant discretionary awards that are not substantiated by company and individual performance.
We do not allow “retesting” or use multiple one-year targets with our annual bonus awards that provide NEOs with more than one opportunity to receive the same payout.
We do not permit repricing of underwater stock options.
We do not pay dividends on unvested RSUs or accrue dividends or dividend equivalents on PSUs during the performance cycle.
unvested PSUs. Pension and welfare benefits and perquisites are not a significant part of our NEOs’ compensation.
NEO employment agreements do not provide for tax gross-ups.
We do not permit our NEOs to pledge ourPVH securities, hold PVH securities in a margin account, or engage in hedging or similar transactions.
We do not provide any special benefits or compensation upon the death of an NEO.
Our NEO employment agreements do not provide for tax gross-ups or include long-term compensation in the calculation of the amount of severance payable. |
40 | PVH CORP. 2021 PROXY STATEMENT
3
This policy was adopted in 2018. Previously, all of our incentive compensation plans included clawback provisions.Compensation Discusion & Analysis See “Clawback Policy” on page 48.
| | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | | | 33 | | |
CD&A 2018 EXECUTIVE COMPENSATION PROGRAM
2018 EXECUTIVE
COMPENSATION PROGRAM
Philosophy and Approach 2020 Executive Compensation Program PHILOSOPHY AND APPROACH Our compensation program is a pay-for-performance model. We believe we should incentivize our executive officers to improve our financial performance, profitably grow our businesses, and increase stockholder value, and reward them only if they attain these objectives. To that end,The severe impacts of the COVID-19 pandemic required us to refocus our priorities. Instead, we focused on ensuring our financial stability and liquidity; protecting our business, including through accelerating the growth of our digital commerce businesses, exiting non-core and low profitability businesses, and positioning ourselves for growth as we emerge from the pandemic; and preserving stockholder value. Consistent with the foregoing, the Compensation Committee and management instituted actions to preserve cash by approving salary freezes and temporary reductions, reducing annual bonus payout opportunities by 50%, and granting annual equity awards in two tranches due to stock price volatility. The foregoing actions did not change our overall approach to compensation. The bulk of each Named Executive Officer’s compensation package consistscontinued to consist of short-term and long-term incentive awards that paypaid out only if we achieveachieved specific financial and strategic targets, and equity awards that arecontinued to be linked to increases in stock value over time. Our strategic targets includeperformance criteria included advancing our corporate responsibility commitments to our associates, the workers in our value chain, and the communities where we live and work, as we firmly believe these efforts help strengthen our organization and improve our performance by managing risk, maximizing efficiencies and driving value. We also believe our compensation program should be competitive. An organization of our size and breadth can only operate effectively and profitably if it is managed by a team of talented executives and executives withwho have the right backgroundnecessary experience and skill sets are in demand.sets. To ensure that we can recruitattract, develop and retain the right people for PVH, when we establish compensation packages each year, we compare the total potential compensation that each Named Executive Officer can earn to the compensation awarded to the most comparable executives at the companies in our peer group. (For more information on the peer group, see “Peer Group,” which beginsGroup” on page 43.54.)Our compensation program and plans have flexibility that permitsare flexible and permit the use of a variety of compensation elements and varying terms. The Compensation Committee reviews the program annually, keeping abreast of regulatory changes, following marketplace developments, and analyzing practices within our peer group. This effort is intended to ensure that our practices are consistent with stockholder interests and enable us to recruit, retain and motivate qualified associates.executives. In administering the program each year, the Compensation Committee determines what elements to use, the terms of all awards and, with respect to performance cycles concluded, the achievement ofextent to which financial goals were achieved and whether any payouts toshould be made. | | SPECIAL NOTE ABOUT COMPENSATION FOR MR. GRIEDER | | | | | The compensation package for Mr. Grieder is somewhat different from the compensation paid to the other NEOs due to a number of factors, including his employment outside of the U.S. and his status as a non-U.S. taxpayer. Accordingly, not all of the discussion regarding our NEOs pertains to him. The principal differences relate to benefits (which are largely dictated by statute in Europe) and currency. Mr. Grieder’s cash compensation is paid in euros but is based on a base salary level tied to Swiss francs because he is a resident of Switzerland. The Swiss franc-to-euro exchange rate we use to determine salary payments to Mr. Grieder is reset quarterly. Historically, the construction of the compensation packages for our U.S.-based NEOs took into consideration the tax deductibility of performance-based compensation. This consideration was not relevant to Mr. Grieder’s compensation. As a result, there were some differences in the design of his compensation package. We have largely left the design of our U.S.-based NEO compensation packages intact even though the tax deduction for performance-based compensation has been eliminated (effective for compensation awarded beginning in 2018). | | |
The compensation package for Mr. Hagman is somewhat different from the compensation paid to the other NEOs because he is employed outside of the U.S. The principal differences relate to benefits (which are largely dictated by statute in Europe) and currency. Accordingly, not all of the discussion regarding our NEOs pertains to him. PVH CORP. 2021 PROXY STATEMENT | 41 | | 34 | | | | | | | PVH CORP. 2019 PROXY STATEMENT
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CD&A Compensation Discussion & Analysis Executive Compensation Overview
Executive Compensation Overview
EXECUTIVE COMPENSATION OVERVIEW Elements of Compensation Our executive compensation program currently consists of six components with the following purposes: | 1. | BASE SALARY,which provides a competitive amount of fixed compensation. | | | | 2. | BONUS AWARDSunder the Performance Incentive Bonus Plan, which provide an annual opportunity to earn additional cash if PVH achieves predetermined objective performance goals. | | | | 3. | STOCK OPTIONSunder the Stock Incentive Plan, which provide an opportunity to benefit from long-term appreciation in the price of our common stock. | | | | 4. | RESTRICTED STOCK UNITSunder the Stock Incentive Plan, which directly align recipients’ long-term interests with |
1.
| those of our stockholders by constantly mimicking the value of our common stock. | | | | 5. | PERFORMANCE SHARE UNITSunder the Stock Incentive Plan, which provide an opportunity to earn equity if PVH achieves predetermined long-term objective performance goals. | | | | 6. | GRIP (“GROWTH AND RETENTION INCENTIVE PLAN”) AWARDSunder the Long-Term Incentive Plan, which provide an opportunity to earn additional cash if predetermined long-term objective performance goals are achieved. |
Base salary, which provides a competitive amount of fixed compensation.
Bonus awards under the Performance Incentive Bonus Plan, which provide an annual opportunity to earn additional cash if PVH achieves predetermined objective performance goals.
Stock options under the 2006 Stock Incentive Plan, which provide an opportunity to benefit from long-term appreciation in the price of our common stock.
Restricted stock units under the 2006 Stock Incentive Plan, which directly align recipients’ long-term interests with those of our stockholders by constantly mimicking the value of our common stock.
Performance share units under the 2006 Stock Incentive Plan, which provide an opportunity to earn equity if PVH achieves predetermined long-term objective performance goals.
GRIP (“growth and retention incentive plan”) awards under the Long-Term Incentive Plan, which provide an opportunity to earn additional cash if predetermined long-term objective performance goals are achieved.
Individual NEOs maygenerally do not receive all six forms of compensation everyeach year. Awards under the Long-Term Incentive Plan,GRIP awards, in particular, are only made from timeinfrequently to time; no GRIP awardsU.S.-based executives and, although they have been used more often with our Europe-based executives, it has been on a triennial basis. Ms. Abel-Hodges and Mr. Hagman were made in 2018. Messrs. Duane, Grieder and Shiffman are the only NEOs who currently have outstandingreceived GRIP awards.awards when they were last made in 2017. Payouts under those awards require theirtypically required the NEOs’ respective business units to achieve predetermined levels of earnings over a three-year period ending atperformance cycle. We also have granted GRIP awards in connection with transactions to incentivize the endintegration and growth of 2019.the acquired businesses. As discussed above, although our executive compensation program retained its overall structure in 2020, we did make significant adjustments in response to the impact of the pandemic on us and our stock, particularly with respect to salaries and bonuses. These adjustments included: | ◾ | obtaining agreements from Mr. Chirico for a temporary salary forbearance and from all other NEOs for temporary salary reductions; | | | | ◾ | making no base salary increases (except for Mr. Hagman in connection with his promotion); | | | | ◾ | reducing bonus payout opportunities by 50%; | | | | ◾ | changing bonus performance measures to EBITDA (to incentivize cash generation); | | | | ◾ | delaying our bonus goal-setting process to the second quarter (to allow stores to reopen after the initial round of temporary |
| closures and assess performance, as well as to assess the impact the pandemic was having on our business and might continue to have for the remainder of the year); | | | | ◾ | establishing performance goals for bonuses in a wider range than is typical, but requiring “break even” performance at the threshold performance level and a stretch goal at the maximum performance level that exceeded our performance at the time the awards were made; and | | | | ◾ | making equity grants in two tranches to provide the NEOs and other participants with their standard grant values only after stock market volatility moderated. |
Compensation Committee Process Considerations when setting compensation TheEvery year the Compensation Committee reviews annually the compensation packages for each of our Named Executive Officers. This includes theirreview considers the NEOs’ respective base salaries, annual and long-term bonus opportunities, the value of their unvested stock options and RSU 42 | PVH CORP. 2021 PROXY STATEMENT Compensation Discussion & Analysis Executive Compensation Overview awards, and the allocation among these elements. We do not prescribe a specific formula for the mix of pay elements other than to favor variable performance-based pay over fixed pay and long-term pay over short-term. When setting the compensation packages for the NEOs, the Compensation Committee starts by looking at the median compensation for comparable executives within our peer group. (For more information, see “Peer Group,” which begins on page 43.54.) Then we consider both objective and subjective factors, such as: | ◾ | job responsibility; | | | | ◾ | individual, business unit, and company performance; | | | | ◾ | potential for advancement; | | | | ◾ | tenure in role and with PVH; |
■| ◾ | internal pay equity; | | | | ◾ | pay history; | | | | ◾ | retention considerations; and | | | | ◾ | alignment with stockholder interests. |
job responsibility;
■
individual, business unit, and company performance;
■
potential for advancement;
■
tenure in role and with PVH;
■
internal pay equity;
■
pay history;
■
retention considerations; and
■
alignment with stockholder interests.
The Compensation Committee also receives input from management, particularly Mr. Chiricothe Chief Executive Officer and, through 2020, the Chief Human Resources Officer. (Our former Chief Human Resources Officer about compensation for the other NEOs. is retiring and has relinquished these duties to his successor, who commenced her employment with PVH in September 2020 and became Chief People Officer on January 1, 2021.)Mr. Chirico’s compensation package iswhile he served as CEO was determined, and adjustments to Mr. Larsson’s compensation will be determined, based upon the Board’s assessment of his performance. Input from each director on several performance metrics leads to the cumulative assessment of histhe CEO’s performance (see(see discussion on page 22)26), which guides the Compensation Committee’s recommendation and the Board’s approval of histhe Chief Executive Officer’s compensation package for the upcoming year. Generally speaking, we adjust Mr. Chirico’sthe Chief Executive Officer’s compensation package less frequently than we adjust compensation for the other NEOs because the CEO’sNEOs. The Chief Executive Officer’s compensation is more heavily weighted toward long-term elements than the compensation packages for the other NEOs, and the Committee prefers to look at several years of compensation results to determine whether preceding compensation adjustments worked as intended. | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | | | 35 | | |
CD&A Executive Compensation Overview
Authority to grant equity awards The Compensation Committee has sole authority to grant equity awards to the NEOs. The Committee has annually delegated limited authority to our Chief Executive Officer to make equity awards to other PVH associates—associates (other than our Section 16 officers), principally in connection with promotions and new hires. Pursuant to this authority, the Chief Executive Officer may grant, on an annual basis, restricted stock units with an aggregate grant date value of $5 million and a maximum value in aone year to any one associate of $300,000. In addition, infor each of 2017 and 2018,through 2019, the Committee delegated limited authority to our Chief Executive Officer to make discretionary equityRSU awards to high-potential and high-performing executives below the senior executive level. Any awards made arewere in addition to an individual’s standard annual grant and subject to the parameters established by the Committee. For 2018, theseThese awards were not permitted to exceed $5 million in the aggregate and generally did not exceed 50% of the individual’s standard annual award. The Committee receivesreceived a report annually on the awards granted pursuant to these delegations of authority. The Committee determined not to authorize the additional discretionary awards in 2020 due to the adverse impacts of the pandemic, volatility in the stock market and measures we took affecting our associate population (including ongoing furloughs and reduced work schedules).Schedule for Compensation Committee meetings The Compensation Committee generally makes decisions during the first quarter of each year about payouts of incentive plan awards for the recently completed fiscal year, and aboutas well as on base salaries, performance-based awards, and equity grants for the current fiscal year. (See “Timing of Equity Awards” on page 47.)57. In addition, the Committee uses theseits first quarter meetings to consider and approve any new incentive compensation plans or arrangements that require Board or stockholder approval. The Compensation Committee’s other meetings during the year typically are focused on reviewing our compensation programs generally and discussing potential changes to the program,these programs, including to address corporate governance and regulatory developments. In addition, the Committee regularly reviews the types and mix of incentive awards included in our compensation PVH CORP. 2021 PROXY STATEMENT | 43 Compensation Discussion & Analysis Executive Compensation Overview program, the financial measures used in incentive awards, and alternative plans and financial measures. The Committee also uses theseits other meetings to address compensation issues relating to changes in executives and promotions among the executive ranks. In addition, Addressing the pandemic, as well as other significant undertakings in the year, significantly disrupted the typical schedule. Ultimately, the Compensation Committee regularly reviewsheld 14 meetings in 2020 (as compared to six or seven in a typical year). The purposes of the types and mix of incentive awards included in our compensation program, the financial measures used in incentive awards, and alternative plans and financial measures.additional meetings included: | ◾ | monitoring the effects of the COVID-19 pandemic; | | | | ◾ | determining and implementing a timely and appropriate compensation program consistent with both managing the financial health of the business and enabling a strong recovery; |
| ◾ | making awards on the altered schedule discussed above; | | | | ◾ | establishing compensation and agreement terms related to the CEO transition and the hiring of other key executives; and | | | | ◾ | making determinations in connection with the resignation of Mr. Hagman’s predecessor and Mr. Hagman’s promotion. |
Use of tally sheets The Compensation Committee reviews tally sheets annually. Each NEO’s tally sheet covers prior year compensation and proposed compensation for the then-current year, including all elements of cash compensation, incentive compensation, perquisites, and benefits. Tally sheets also illustrate compensation opportunities and benefits and quantify payments and other value an executive would receive in various termination of employment scenarios, meaning they show full “walk away” values. As such, theyIn short, tally sheets enable the Compensation Committee to see and evaluate the full range of executive compensation; understand the magnitude of potential payouts as a resultin the event of retirement, change in control, and other events resulting in termination of employment; and consider changes to our compensation program, arrangements and plans in light of “best practices” and emerging trends. Independent Compensation Consultant The Compensation Committee has retained ClearBridge Compensation Group (“ClearBridge”) as its independent compensation consultant since 2009. The Compensation Committee directs the compensation consultant, approves the scope of the compensation consultant’s work each year, and approves the associated fees. ClearBridge meets and works with the Committee, our Chief Executive Officer, our Chief Human Resources Officer/Chief People Officer and our SeniorExecutive Vice President, Global Compensation, Benefits and HR Systems, to develop each year’s compensation packages and overall compensation program. The Committee reviews the compensation program and related matters annually, and instructs the compensation consultant to provide information, analysis and recommendations to facilitate that review. Areas ofThe principal focus areas in 20182020 included performance measures, the relative allocation of target pay among themonitoring how our peers and how other companies in our industry adjusted compensation elements,programs and whether to change the compensation program or the approach to constructing the NEOdesigned compensation packages in lightresponse to the impacts of the changepandemic, including determining whether to the deductibility of performance-based compensation under U.S. tax law.and, if so, how best to maintain our overall program design. The compensation consultant also assists the Committee in regard towith its assessment of risks in our compensation program and consideration of tally sheets. ClearBridge is engaged by, and reports directly to, the Compensation Committee, and has been determined by the Committee to be independent under SEC rules and NYSE listing standards. ClearBridge also advises, and reports to, the Nominating, Governance & Management Development Committee on matters relating to non-employee director compensation. Management is prohibited from retaining the compensation consultant without the prior approval of the Compensation Committee. No such approval has been sought. The Chief Human Resources Officer/Chief People Officer, SeniorExecutive Vice President, Global Compensation, Benefits and HR Systems, and the General Counsel review drafts of the materials the compensation consultantClearBridge prepares for the Committee to ensure the accuracy of our internal data.data and records, compliance with plan terms and other matters. These executives also provide guidance to the Committee regarding applicable matters such as associate perceptions and reactions, and legal and disclosure developments. 44 | PVH CORP. 2021 PROXY STATEMENT | | 36 | | | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | |
CD&A Compensation Discussion & Analysis Compensation Decisions for 20182020
COMPENSATION DECISIONS FOR 2020 The pandemic had an unprecedented impact on everything in 2020. Trying to predict performance was impossible, year-over-year growth was unachievable, and the stock market was extremely volatile. Meanwhile, our leadership team was working under difficult conditions to protect the health of our associates, consumers, business partners and communities; accelerate the growth and profitability of our digital commerce businesses; right-size our cost base; manage discretionary spending; maintain our financial health and liquidity; enhance the brand position, products and consumer experience in each of our businesses; set PVH up for an accelerated post-pandemic recovery by focusing on distribution, our brands and our products to drive deeper connections with our consumers; and continue to advance plans with respect to our CEO transition and Board refreshment processes. Additionally, we were asking our associates and managers to do more with less due to temporary salary reductions, furloughs, and work schedule cutbacks, and, ultimately, workforce reductions. Key actions taken since the beginning of the pandemic include: | ◾ | Completing the sale of our licensed Speedo North America business for approximately $170 million; | | | | ◾ | Suspending share repurchases and quarterly dividends; | | | | ◾ | Securing a $275 million 364-day revolving credit facility; | | | | ◾ | Raising €175 million through a private offering of senior notes due 2024; | | | | ◾ | Obtaining covenant waivers under our 2019 senior credit facilities; | | | | ◾ | Raising $500 million through a private offering of senior notes due 2025; | | | | ◾ | Announcing the exit from our Heritage Brands Retail division by mid-2021; |
| ◾ | Effecting workforce reductions in North America and certain international markets; | | | | ◾ | Announcing and completing the planned Chief Executive Officer transition to Mr. Larsson from Mr. Chirico; | | | | ◾ | Appointing two diverse independent directors in connection with our Board refreshment program; and | | | | ◾ | Adding key leadership talent, including a Chief Executive Officer, PVH Americas (new role); Chief People Officer (Chief Human Resources Officer retired); Chief Executive Officer, PVH Asia-Pacific (leadership change); Chief Diversity Officer and Senior Vice President of Global Talent Acquisition and Associate Experience (new role); and chief brand, marketing, design and merchandising executives at both Calvin Klein and Tommy Hilfiger (new roles or filled vacancies). |
We developed compensation packages for 2020 that reflected management’s efforts and success in effecting these actions, the financial realities of the year, the volatility in the stock market, the need to incentivize and retain key talent, and the need to recognize management’s leadership in navigating the pandemic and positioning the company and our businesses to exit the pandemic in a strong position and prepared to deliver our next chapter of growth. The key changes are noted below: | Pay element | | Historical program bases | | Key changes for 2020 | | BASE SALARY | | ◾ | Committee considers time between salary increases, whether the NEO was recently promoted or assumed additional responsibilities, the NEO’s advancement potential, and whether the NEO executed special or difficult assignments during the year | | ◾ | Each NEO had a temporary full or partial base salary reduction for three months | | ◾ | No base salary increases (other than for Mr. Hagman in connection with his promotion) | | | |
| | | | SHORT-TERM INCENTIVES
(Annual bonuses under our Performance Incentive Bonus Plan) |
| ◾ | EPS performance metric for all NEOs |
| ◾ | Corporate EBITDA selected as performance metric for all NEOs | | ◾ | Business unit operating income performance metric for NEOs with divisional responsibilities | ◾ | Business unit EBITDA selected as performance metric for NEOs with divisional responsibilities | | ◾ | Awards can be modified based on strategic performance criteria | ◾ | Committee decreased potential payouts at each level of performance to 50% of standard opportunities | | ◾ | Performance goals established during first quarter for full year | ◾ | Awards remained subject to modification based on strategic performance criteria but, ultimately, no awards were adjusted | |
| ◾ | Performance goals established during second quarter for 9-month period to allow for stores to reopen after mandatory lockdowns and allow the business environment to become more settled | | | | | | | | LONG-TERM INCENTIVES
(Combination of RSUs, stock options and PSUs) | | ◾ | Committee grants awards in single tranche | | ◾ | Committee granted awards in two tranches with separate vesting and performance periods | | ◾ | Stock options and RSUs vest at a rate of 25% on each of the first four anniversaries of the grant date (assuming continued employment) | ◾ | All other material terms of awards made in 2020 were substantially unchanged | | ◾ | PSUs vest based on absolute stock price performance and relative TSR against the S&P 500 for a three-year performance period | | |
PVH CORP. 2021 PROXY STATEMENT | 45 Compensation Discussion & Analysis Compensation Decisions for 2020 The reduction in bonus payout opportunities meant that a payout at the maximum performance level to each of Messrs. Chirico, Shaffer and Larsson would equal the target payout under their standard compensation packages. Ms. Abel-Hodges’ maximum payout opportunity would be above her standard target payout opportunity. Mr. Hagman’s maximum payout opportunity would be below his standard target payout opportunity. We did not adjust performance goals for any of our outstanding PSU awards (i.e., grants made in 2017, 2018 and 2019). PSU awards for the three-year performance cycles that ended in April 2020 and April 2021 did not pay out because the performance goals established at the time they were granted (i.e., 2017 and 2018, respectively) were not achieved.Base Salaries Objective
Objectives Base salaries provide our Named Executive Officers with a stable and secure source of income at a market-competitive level, and also serve to retain and motivate these individuals. Base salaries are established for each NEO primarily based upon market considerations, peer data, PVH’s overall performance, our expected performance, individual performance, and (for Messrs. Duane, GriederMs. Abel-Hodges and Shiffman) the performance of theMr. Hagman) business units for which an NEO has responsibility.unit performance. For any particular NEO, the Compensation Committee also may consider time between salary increases, whether the NEO was recently promoted or assumed additional responsibilities, the NEO’s advancement potential, and whether the NEO executed special or difficult assignments during the year. Finally, the Compensation Committee takes into account the relative salaries of our Named Executive Officers. Ultimately, base salary decisions are subjective; no specific weight is assigned to any deciding factor.  We did not grant base salary increases in 2020 (other than Mr. Hagman’s promotional increase). This decision was a reflection of the business environment at the time and expectations that difficult conditions would continue; it also preserved cash and was consistent with decisions we were making not to provide salary increases across our associate populations and to furlough associates, reduce work schedules (and proportionate pay) and reduce our workforce.
Base salaries for our NEOs, along with their adjusted salaries that give effect to the temporary salary reductions implemented in 2020 for three months are shown below. The salary increases shown were effective on June 1, 2018. | Name | | | 2018 base salary | | | 2017 base salary | | | Increase % | | | EMANUEL CHIRICO | | | | $ | 1,500,000 | | | | | $ | 1,350,000 | | | | | | 11.1% | | | | MICHAEL A. SHAFFER | | | | $ | 925,000 | | | | | $ | 900,000 | | | | | | 2.8% | | | | FRANCIS K. DUANE | | | | $ | 1,150,000 | | | | | $ | 1,125,000 | | | | | | 2.2% | | | | DANIEL GRIEDER | | | | ₣ | 1,000,000 | | | | | ₣ | 975,000 | | | | | | 2.6% | | | | STEVEN B. SHIFFMAN | | | | $ | 975,000 | | | | | $ | 950,000 | | | | | | 2.6% | | |
| Name | | 2019
Base Salary | | 2020
Base Salary | | Temporary 2020
% Base Salary
Reductions | | Effective Base
Salary | | Overall Salary
Reduction | | EMANUEL CHIRICO | | $ 1,500,000 | | $ 1,500,000 | | 100% | | $ 1,125,000 | | 25.00% | | MICHAEL A. SHAFFER | | $ 950,000 | | $ 950,000 | | 25% | | $ 890,625 | | 6.25% | | STEFAN LARSSON | | $ 1,200,000 | | $ 1,200,000 | | 35% | | $ 1,095,000 | | 8.75% | | CHERYL ABEL-HODGES | | $ 1,000,000 | | $ 1,000,000 | | 25% | | $ 937,500 | | 6.25% | | MARTIJN HAGMAN | | N/A | | € 800,000 | | 25% | | € 750,0001 | | 6.25% |
| 1 | Effective base salary for Mr. Hagman was calculated assuming the increase in base salary he received upon his promotion to Chief Executive Officer, Tommy Hilfiger Global and PVH Europe, was in effect for the entire year. |
46 | PVH CORP. 2021 PROXY STATEMENT Mr. Chirico’s base salary had last been increased in 2012.Compensation Discussion & Analysis Compensation Decisions for 2020 Short-Term Incentives—Performance Incentive Bonus Plan | Objective | | | | | | Annual bonus awards under our Performance Incentive Bonus Plan provide cash compensation that is at risk and contingent on the achievement of short-term company and, for some NEOs, business unit performance goals. We establish performance targets that we believe are rigorous, but not rigorous enough to encourage excessive risk. As evidence of this rigor, over the past five years, annual bonuses have been at or below target once, somewhat above target twice and at or near maximum twice. | |
Objective Annual bonus awards under our Performance Incentive Bonus Plan provide cash compensation that is at risk and contingent on the achievement of short-term company and, for some NEOs, business unit performance goals. We establish performance targets that we believe are rigorous but not likely to encourage excessive risk-taking. As evidence of this rigor, over the past five years, our performance against the goals established for bonuses has varied significantly, ranging from slightly above threshold to maximum. Considerations We believe annual bonuses are appropriate to motivate the Named Executive Officers to execute against the budget and business plans approved by ourthe Board each year. These budgets typically are the basis of our earnings and other guidance, assessments of our performance in earnings releases, and discussions with investors. We generally align performance metrics for annual bonus awards to our annual budgets and presentations to investors.establish the goals and payout opportunities in the first quarter. At the beginning of each year, theBonus performance level achievement over past five years1 
| 1 | Reflects corporate performance-based awards only. |
The Compensation Committee makes three sets of decisions respecting annual bonuses: ![[MISSING IMAGE: tv515132_123box.jpg]](https://files.docoh.com/DEF 14A/0001144204-19-024142/tv515132_123box.jpg) | 1 | | 2 | | 3 | | Potential bonus payouts for each NEO. | | Financial metrics that will determine award payouts, and specific goals for each. | | Strategic performance criteria applicable to all of the NEOs but against which they are individually assessed. |
2020 decisions The pandemic and actions by governments around the world to attempt to contain the spread of the virus impacted our global business, including requiring us, our traditional wholesale customers and our franchisees to shut down almost all of our stores during the first quarter of 2020. Goals for bonuses based on corporate performance typically are based on our public earnings guidance, which, in turn, is derived from our Board-approved budgets. However, given the volatile business environment and the unpredictable impact of the pandemic, we did not provide earnings guidance in 2020 beyond general directional revenue estimates, and that only once stores started to reopen. When stores (ours, our customers’ and our franchisees’) generally were reopened and the business environment became somewhat more settled in the second quarter of 2020 we made the bonus awards for the year. Delaying the bonus award process from April to July allowed us to review and update our internal business plans and assess actual and projected performance based on our operations and market conditions at that time. The Compensation Committee, for its part, was able to receive information on other companies’ approaches to bonuses in light of the pandemic’s effect on business, and to use actual performance information to establish financial goals for the second through fourth quarters of 2020 that aligned with and incentivized the achievement of strategic priorities set forth in our plans. Throughout the year, the Committee received detailed updates with respect to the company’s actual and projected performance. The bonus awards made by the Committee had several key differences from prior years that reflected the impact the pandemic was having on PVH and our business. Most importantly: | ◾ | Payout opportunities were half of those in the NEOs’ standard compensation packages. As a result, the payouts for Messrs. Chirico, Shaffer and Larsson could not exceed their standard target payouts. Ms. Abel-Hodges’ payout opportunity at the maximum performance level was above her standard target payout. Mr. Hagman’s payout opportunity at maximum performance was below his standard target payout. | | | | ◾ | EBITDA was the performance measure used for both corporate and business unit awards to focus on the importance of generating cash and reinforcing our liquidity and financial position. |
| | | ◾ | There was a much wider than usual range between the target and maximum performance goals and the target and threshold goals to reflect the volatile business environment and the unpredictable impact of the pandemic at the time goals were set. |
PVH CORP. 2021 PROXY STATEMENT | 47 | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | | | 37 | | |
CD&A Compensation Discussion & Analysis ��Compensation Decisions for 20182020
2018 decisions
The Compensation Committee sets threshold, target and maximum payoutspayout opportunities for each NEO, expressed as a percentage of the NEO’s base salary. For 2018, awardThe payout opportunities were as follows: | Name | | | Threshold (% base salary) | | | Target (% base salary) | | | Maximum (% base salary) | | | EMANUEL CHIRICO | | | 100 | | | 200 | | | 400 | | | MICHAEL A. SHAFFER | | | 50 | | | 100 | | | 200 | | | FRANCIS K. DUANE | | | 37.5 | | | 75 | | | 175 | | | DANIEL GRIEDER | | | 50 | | | 100 | | | 200 | | | STEVEN B. SHIFFMAN | | | 37.5 | | | 75 | | | 175 | |
Mr. Chirico’s potential payouts were increased atapproved in 2020 are set forth below. The payout percentages for each of threshold (from 75% to 100%)the NEOs were set at half those included in their standard compensation packages, as more fully discussed above. The reduction reflected the shortened performance period (since we did not make bonus awards until the second quarter), target (from 150% to 200%),the compensation-related measures we took that affected our associates (such as temporary salary reductions, furloughs, work schedule reductions and, maximum (from 300% to 400%). There were no changesin most cases, reduced bonus payout opportunities (although generally not to the potential payoutsdegree of the decreases to the NEOs and the other senior executives)), our inability to estimate performance with the same level of credibility as in a typical year, and the recognition that, unlike in most years, the financial metrics and goals adopted for our other NEOs.
2020 were not tied to business growth.| | | 50% Reduced 2020 Payout Opportunities | | Standard Payout Opportunities | | (Percent of base salary) | | Threshold | | Target | | Maximum | | Threshold | | Target | | Maximum | | EMANUEL CHIRICO | | 50
| | 100
| | 200
| | 100
| | 200
| | 400 | | MICHAEL A. SHAFFER | | 25
| | 50
| | 100
| | 50
| | 100
| | 200 | | STEFAN LARSSON | | 37.5
| | 75
| | 150
| | 75
| | 150
| | 300 | | CHERYL ABEL-HODGES | | 18.75 | | 37.5 | | 87.5 | | 37.5 | | 75
| | 175 | | MARTIJN HAGMAN1 | | 25
| | 50
| | 87.5 | | 50
| | 100
| | 175 |
| 1 | The percentages shown are based on the compensation package awarded to Mr. Hagman in connection with his promotion to Chief Executive Officer, Tommy Hilfiger Global and PVH Europe. Mr. Hagman’s maximum potential payout opportunity (after giving effect to the 50% reduction in place for 2020) as a percentage of base salary was 83.4%, which is a blended rate for his maximum potential payouts under his compensation packages in effect before and after his promotion based on the portion of the year he spent in each of his positions. |
Financial metrics Annual bonuses for Mr.Messrs. Chirico, Larsson and Mr. Shaffer were based entirely upon earnings per share of our common stockcorporate performance for the year. Bonusessecond through fourth quarters of 2020, while bonuses for NEOs with divisional responsibilities were based on both corporate earnings per share and operating income for their respective business units,units’ performance for the same period, in the proportions shown below. We selected these two metrics because they are important to our investors. | Name | | | Earnings per share | | | Business unit operating income | | | EMANUEL CHIRICO | | | 100% | | | N/A | | | MICHAEL A. SHAFFER | | | 100% | | | N/A | | FRANCIS K. DUANE
Heritage Brands Portfolio | | | 50% | | | 50% | | Daniel Grieder
Tommy Hilfiger Global and Calvin
Klein/Heritage Brands Europe | | | 30% | | | 70% | | STEVEN B. SHIFFMAN
Calvin Klein Global and
The Underwear Group | | | 30% | | | 70% | |
Oversight of The Underwear Group was moved from Mr. Duane to Mr. Shiffman due to the importance of our Calvin Klein Underwear business to that group. Mr. Grieder’s responsibility for our Heritage Brands business activitiesfinancial measures we used in Europe was expanded beyond our Michael Kors dress furnishings business (his sole responsibility in 2017) to include an Izod sportswear business that was launched in Europe during 2018.
Non-financial criteria
Payouts for the NEOs also are based upon individual performance against pre-established non-financial strategic and performance criteria, which gives the Compensation Committee some flexibility to modify payouts (up or down) by up to 25% of an NEO’s base salary, so long as an adjusted award does not exceed the NEO’s maximum opportunity. We added this additional component to the bonus awards in 2017 to encourage and reward NEOs’ efforts to improve performance, develop and advance associates under their leadership, and lead progress against our corporate responsibility commitments. These items either do not get captured by the financial goals or are expected to yield benefits only in the future.
2018 results
Earnings per share
Payouts of bonuses for all the NEOsprevious years were contingent principally upon achievement of their respective earnings goals (earnings per share for all NEOsEPS and business unit operating incomeincome. However, the impact of the pandemic on our business and stock price performance meant that management’s focus — and the best measurement of our operating performance for certain NEOs).the year — would be different. The earnings per shareCompensation Committee chose EBITDA as the most appropriate measure since generating cash and business unit earningsreinforcing our financial position were particularly important at that time and in the near term. | | Corporate EBITDA | | Business unit EBITDA | | EMANUEL CHIRICO | | 100% | | N/A | | MICHAEL A. SHAFFER | | 100% | | N/A | | STEFAN LARSSON | | 100% | | N/A | | CHERYL ABEL-HODGES | | 25% | | | | Calvin Klein Global | | | | 25% | | Calvin Klein North America and The Underwear Group | | | | 50% | | MARTIJN HAGMAN | | 25% | | | Tommy Hilfiger Global | | | | 25% | | PVH Europe | | | | 50% |
Corporate EBITDA Corporate EBITDA goals at targetfor the nine-month measurement period were based on the budget approved byinternal business plans reviewed with the Board at the beginningtime the goals were established and were subject to adjustment for agreed upon exclusions. The plans were developed after business had resumed following the temporary closure of 2018“non-essential” retail stores (like ours and included a planned level of share repurchases. | | 38 | | | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | |
CD&A Compensation Decisions for 2018
The earnings per share goal at target also is typically at or near the midpoint of the earnings per share guidance range we give to investors at the beginning of each year. The earnings per share goal at target for 2018 was at the midpointthose of our guidance,customers and was inclusive of an expected $0.35 per share positive impact related to foreign currency exchange rates. The actual positive impact was only $0.05 per share.
franchisees) in virtually all markets where we operated. Once the target goal was established,determined, we set the threshold performance goal at approximately 90% of target and the maximum performance goal at approximately 110% of target, as was the case in 2018. The threshold-to-maximum range can vary from year to year based on the Compensation Committee’s evaluation of business but has been approximately 90% to 110% for each of the past three years. | | | | Threshold | | | Target | | | Maximum | | | 2018 earnings per share goal | | | $8.10 | | | $9.05 | | | $10.00 | | (Decrease) increase from 2017 bonus earnings per
share results of $8.141 | | | (0.5)% | | | 11.2% | | | 22.9% | | | 2018 earnings per share2 | | | | | | $9.60 | | | | | | Goal achieved (as a percentage of target) | | | | | | 106.1% | | | | |
1
This number is on a non-GAAP basis. Earnings per share on a GAAP basis for 2017 was $6.84.
2
This number is on a non-GAAP basis. Earnings per share on a GAAP basis for 2018 was $9.65.
Our earnings per share results were between the target and maximum goals. As a result, our NEOs received payouts on the EPS portion of their bonus awards calculated using straight-line interpolation between their respective target and maximum potential payouts.
Individual business units
Annual bonuses for Messrs. Duane, Grieder and Shiffman are based heavily on the operating income of the business units each leads. The threshold, target and maximum operating income goals applicable to each of these NEOs are set forth below, as well as the actual results and payout percentage for 2018. Threshold performance goals typically are set at approximately 90% of target, and maximum performance goals typically are set at approximately 110% of target, consistent with the awards based on earnings per share.goals. The threshold-to-maximum range can vary from year to year based on the Compensation Committee’s evaluation of business conditions, but has been approximately 90% to 110% of target for each of the past three years. The range for 2020 was much wider than normal, which we believe reflected the uncertain and volatile market conditions at the time. Specifically, the threshold performance goal was set at break-even EBITDA for the nine-month period, while the maximum performance goal48 | PVH CORP. 2021 PROXY STATEMENT | NEO | | | Business unit(s) | | | Threshold
($ and as %
of target) | | | Target
($ and as
% of target) | | | Maximum
($ and as
% of target) | | | Actual
($ and as %
of target) | | | FRANCIS K. DUANE | | | Heritage Brands Portfolio | | | | $ | 131,000,000 | | | | | $ | 153,525,000 | | | | | $ | 175,500,000 | | | | | $ | 157,982,000 | | | | | | | 85% | | | | | | 100% | | | | | | 114% | | | | | | 103% | | | | DANIEL GRIEDER | | | Tommy Hilfiger Global
and Calvin Klein/
Heritage Brands Europe | | | | € | 611,000,000 | | | | | € | 657,233,000 | | | | | € | 702,000,000 | | | | | € | 704,627,000 | | | | | | | 93% | | | | | | 100% | | | | | | 107% | | | | | | 107% | | | | STEVEN B. SHIFFMAN | | | Calvin Klein Global and The Underwear Group | | | | $ | 507,000,000 | | | | | $ | 554,070,000 | | | | | $ | 600,000,000 | | | | | $ | 539,461,000 | | | | | | | 92% | | | | | | 100% | | | | | | 108% | | | | | | 97% | | |
EachCompensation Discussion & Analysis Compensation Decisions for 2020 required stretch performance that was equal to three times target and required continued outperformance of Messrs. Duane, Grieder and Shiffman qualifiedthen current trends for a payoutthe remainder of the portionyear. We believed this approach reflected the role annual bonuses play in the context of their annual bonus awards attributable to the earnings performance of their business units. These payouts, subject to the adjustments described below, were calculated on a straight-line interpolation basis fromour compensation packages in incentivizing and retaining senior executives despite the potential payouts shown above. Payoutsunpredictable impact of the global pandemic on business performance. We also thought it important to continue using a quantified financial performance metric, rather than choosing to apply qualitative measures or taking a subjective approach using qualitative measures. The performance goals and actual results for the businessawards made in 2020 are set forth below. Business unit portionEBITDA A majority of the annual awardsbonus opportunities for Ms. Abel-Hodges and Mr. Hagman were betweenbased on the EBITDA of the business units they lead. As with corporate goals, threshold performance goals typically are set at approximately 90% of target and maximum performance goals typically are set at approximately 110% of target, although the range can vary from year to year based on the Compensation Committee’s evaluation of business conditions. As with the corporate EBITDA goals, the threshold-to-maximum range was significantly greater in 2020 given the unprecedented disruption caused by the pandemic and the inability to predict the pandemic’s impact on business unit performance. The performance goals applicable to each of these NEOs are set forth below, as well as the actual results for the awards made in 2020. Strategic performance criteria Payouts for the NEOs also are based upon an evaluation of individual performance against strategic performance criteria established at the time the awards are made. This provides the Compensation Committee some flexibility to modify payouts (up or down) by a maximum of 25% of a NEO’s base salary, so long as an adjusted award does not exceed the NEO’s maximum opportunity. This component encourages and rewards the NEOs’ efforts to improve performance, develop and advance associates under their leadership, and progress against our corporate responsibility commitments, as well as take other actions that may have a negative earnings impact in the year taken but are nonetheless considered beneficial. These items typically either do not get captured by the financial goals or are expected to yield benefits only in the future and may not be reflected directly in future bonus calculations. No adjustments were made to any 2020 payouts. 2020 annual bonus payouts Despite the significant challenges caused by the pandemic, we saw improved performance trends in the second half of the year as our management team led strategic efforts to position the company for future growth. Our Asia business was very strong, led by our performance in China. China emerged first and built upon 2019 performance with revenue through digital channels growing 55% and, when fully open, our European businesses drove high consumer and retailer demand and clear market share gains. In addition, we supercharged our digital business, including acting nimbly to use inventories from closed stores and using our own warehouses to supplement the work of our third-party digital commerce fulfillment provider. These actions led to our strongest-ever digital sales growth of 43%, including 69% growth on our own sites, while driving a significant improvement in our profitability in the channel. We also focused on rightsizing our cost base and tightly managed our discretionary spending to offset the impact that store closures and sales pressure around the world would have on profitability. As a result, our corporate EBITDA and applicable business unit EBITDA performance was above the maximum level performance goals, and all NEOs received corresponding payouts (at the reduced percentages of their base salaries in comparison to their standard compensation packages). These payouts were the equivalent of a standard target-level payout for Messrs. Chirico, Shaffer and Larsson, above Ms. Abel-Hodges’ standard target payout and below Mr. Duane, at maximum for Mr. Grieder, and between threshold and target for Mr. Shiffman. Corporate EBITDA Goals | | | Threshold | | Target | | Maximum | | EBITDA goal | | $0 | | $100,000,000 | | $300,000,000 | | EBITDA achieved | | | | | | $492,985,000 |
PVH CORP. 2021 PROXY STATEMENT | 49 | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | | | 39 | | |
CD&A Compensation Discussion & Analysis Compensation Decisions for 20182020
Business Unit EBITDA Goals
| NEO | | Business unit(s) (weight as a % of total bonus opportunity) | | Threshold | | Target | | Maximum | | Actual | | CHERYL ABEL-HODGES | | Calvin Klein Global (25%) | | $16,000,000 | | $93,000,000 | | $170,000,000 | | $250,713,000 | | | | Calvin Klein North America and The Underwear Group (50%) | | $(108,000,000) | | $(51,000,000) | | $6,000,000 | | $49,609,000 | | MARTIJN HAGMAN | | Tommy Hilfiger Global (25%) | | €136,404,000 | | €208,333,000 | | €280,263,000 | | €315,518,000 | | | | PVH Europe (50%) | | €179,386,000 | | €251,315,000 | | €323,246,000 | | €372,336,000 |
Discretionary adjustments for non-financial criteria In addition to the financial goals discussed above, each Each NEO’s bonus award potentially was subject to adjustment based on the NEO’s performance against prescribed non-financial strategic and performance criteria. The Compensation Committee adjusted Mr. Duane’s bonus upward based upon certain efforts he made in 2018no adjustments to grow the Heritage Brands business. Mr. Shiffman’s bonus was adjusted downward due to issues in the Calvin Klein business related to a strategy he had developed. See the discussion below.
2018 annual bonus amounts
Annual bonuses for 2020 attributable to the NEOs were calculated using the following formulas and were then subject to adjustmentprescribed strategic performance criteria.Annual bonus payout calculations for non-financial criteria, as described immediately above: For Messrs. Chirico, Shaffer and Shaffer:
For Messrs. Duane, GriederLarsson:| Base salary | X | individual bonus percentage |
Since corporate EBITDA of $492,985,000 exceeded the maximum goal of $300,000,000, the “individual bonus percentage” for each of these NEOs was their highest payout level (at the 50% reduced payout opportunities established for 2020), as shown below. Annual bonus payout calculations for Ms. Abel-Hodges and Shiffman: Mr. Hagman:| Base salary × individual bonus percentage based on corporate EBITDA × .25 | + | Base salary × individual bonus percentage
based on the EBITDA of the applicable
business units × .75 |
The calculation of the actual bonus payout amounts (at the reduced payout opportunities) is shown below. | | | | Earnings per share potential
payouts (% of base salary) | | | Payout on
earnings per
share ($ and
as % of base
salary) | | | Business unit operating
income potential payouts
(% of base salary) | | | Payout on
business unit
operating
income
($ and as % of
base salary) | | | Discretionary
adjustments
($ and as % of
base salary) | | | Total annual
bonus
($ and as %
of base
salary) | | | NEO | | | Threshold | | | Target | | | Maximum | | | Threshold | | | Target | | | Maximum | | | EMANUEL CHIRICO | | | 100.00 | | | 200.00 | | | 400.00 | | | $4,736,850 | | | | | | | | | | | | | | | $ — | | | $4,736,850 | | | | | | | | | | | | | 315.79% | | | | | | | | | | | | | | | | | | 315.79% | | | MICHAEL A. SHAFFER | | | 50.00 | | | 100.00 | | | 200.00 | | | $1,460,483 | | | | | | | | | | | | | | | $ — | | | $1,460,483 | | | | | | | | | | | | | 157.89% | | | | | | | | | | | | | | | | | | 157.89% | | | FRANCIS K. DUANE | | | 18.75 | | | 37.50 | | | 87.50 | | | $764,175 | | | 18.75 | | | 37.50 | | | 87.50 | | | $547,860 | | | $240,000 | | | $1,552,035 | | | | | | | | | | | | | 66.45% | | | | | | | | | | | | 47.64% | | | 20.87% | | | 134.96% | | DANIEL GRIEDER1 | | | 15.00 | | | 30.00 | | | 60.00 | | | €419,677 | | | 35.00 | | | 70.00 | | | 140.00 | | | €1,240,339 | | | € �� | | | €1,660,016 | | | | | | | | | | | | | 47.37% | | | | | | | | | | | | 140.00% | | | | | | 187.37% | | | STEVEN B. SHIFFMAN | | | 11.25 | | | 22.50 | | | 52.50 | | | $388,733 | | | 26.25 | | | 52.50 | | | 122.50 | | | $432,413 | | | $(82,115) | | | $739,031 | | | | | | | | | | | | | 39.87% | | | | | | | | | | | | 44.35% | | | -8.42% | | | 75.80% | |
1
Mr. Grieder’s bonus is paid in euros but is based on a salary level tied to Swiss francs, converted at a franc-to-euro exchange rate of 0.8860, which was the average rate for March 2019, the month in which the payout was certified.
Mr. Duane received an upward adjustment of his bonus of $240,000 (20.87% of his base salary) for his efforts leading our innovation program, the expansion of our digital efforts for the Heritage Brands business, including the launch of three owned e-commerce sites, and the licensing of IZOD for sales by our Europe team.
Mr. Shiffman received a downward adjustment of his bonus of $82,115 (8.42% of his base salary). This adjustment was to reflect that Mr. Shiffman’s strategy for the Calvin Klein business resulted in performance issues in parts of the business, leading to the decision to exit the high-end “halo” Collection business and restructure other parts of the organization.
| | | | | | | | | Payout on | | | | | | | | Payout on business | | Total annual | | | | Corporate EBITDA potential | | corporate EBITDA | | Business unit EBITDA potential | | unit EBITDA | | bonus | | | | payouts (% of base salary) | | ($/€ and as % of | | payouts (% of base salary) | | ($/€ and as % of | | ($/€ and as % of | | NEO | | Threshold | | Target | | Maximum | | base salary) | | Threshold | | Target | | Maximum | | base salary) | | base salary) | | EMANUEL CHIRICO | | 50.00
| | 100.00
| | 200.00
| | $3,000,000 | | | | | | | | | | $3,000,0002 | | | | | | | | | | 200% | | | | | | | | | | 00% | | MICHAEL A. SHAFFER | | 25.00
| | 50.00
| | 100.00
| | $950,000 | | | | | | | | | | $950,000 | | | | | | | | | | 100% | | | | | | | | | | 100% | | STEFAN LARSSON1 | | 37.50
| | 75.00
| | 150.00
| | $1,800,000 | | | | | | | | | | $1,800,000
150% | | | | | | | | | | 150% | | | | | | | | | | | | CHERYL ABEL-HODGES | | 4.688
| | 9.375
| | 21.875
| | $218,750 | | | | | | | | | | $875,000
87.50% | | | | | | | | | | 21.875% | | | | | | | | | | | | Calvin Klein Global | | | | | | | | | | 4.688 | | 9.375
| | 21.875 | | $218,750 | | | | | | | | | | | | | | | | | | | | 21.875% | | | | Calvin Klein North America and The Underwear Group | | | | | | | | | | 9.375 | | 18.75
| | 43.75
| | $437,500 | | | | | | | | | | | | | | | | | | | 43.75% | | | | MARTIJN HAGMAN2 | | 6.25
| | 12.50
| | 20.84
| | €166,735 | | | | | | | | | | €666,940 | | | | | | | | | | 20.84% | | | | | | | | | | 83.37% | | Tommy Hilfiger Global | | | | | | | | | | 6.25
| | 12.50
| | 20.84
| | €166,735 | | | | | | | | | | | | | | | | | | | | 20.84% | | | | PVH Europe | | | | | | | | | | 12.50
| | 25.00
| | 41.69
| | €333,470 | | | | | | | | | | | | | | | | | | | | 41.69% | | |
| | | 1 | Mr. Larsson received a payment of $1,440,000 in December 2020, which represented 80% of our good faith estimate of his 2020 bonus, as provided in his employment agreement. The remaining balance was paid in April 2021, at the same time as bonuses were paid to the other NEOs who received payouts. See page 66. | | | | 2 | Mr. Hagman’s bonus is based on a partial year at 75% of base salary and a partial year at 87.5% based on the highest level payout opportunities (after the 50% reduction of all payout opportunities for 2020) for periods before and after his promotion. |
50 | PVH CORP. 2021 PROXY STATEMENT | | 40 | | | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | |
CD&A Compensation Discussion & Analysis Compensation Decisions for 20182020
Long-Term Incentives—Incentives — Stock Options and Restricted Stock Units Annual grants under our 2006 Stock Incentive Plan of stock options and restricted stock units align the NEOs’ interests with those of our stockholders. The value of these awards is at risk and varies with the price of our common stock. We believe that stock options provide an incentive to recipients to increase stockholder value over the long term: the benefit of a stock option is determined by how much the price of the underlying stock appreciates over the life of the option, and an option has no value if that stock price does not increase. Moreover, we believe that stock options have the potential to deliver more value to an executive than restricted stock units.
We grant restricted stock units because they mimic the interests of stockholders, as both increases and decreases in our stock price have the same effect on holders of restricted stock units as they do on stockholders. Additionally, restricted stock units serve as a constant incentive, regardless of fluctuations in stock price. We believe that stock options provide an incentive to recipients to increase stockholder value over the uselong term. The benefit of a stock option is determined by how much the price of the underlying stock appreciates over the life of the option, and an option has no value if the stock price does not increase. Moreover, we believe that stock options have the potential to deliver more value to an executive than restricted stock units. We believe that using a combination of stock options and restricted stock units is consistent with our compensation philosophy, as each aligns our executives with stockholder interests in different ways. We granted bothtook a modified approach to making the 2020 annual grants of stock options and restricted stock units to our Named Executive Officers during 2018, except as noted belowOfficers. Consistent with regard to Mr. Duane. Thesehistorical grant practices, these awards vest at a rate of 25% on each of the first four anniversaries of the grant date except as noted below with regard to Mr. Duane.(provided the recipient remains employed by PVH). The stock options will expire 10 years after the grant date if not exercised. Grantees receive shares of our common stock upon the vesting of restricted stock units equal in a number equal to the number of restricted stock units that vest. Grantees may elect to have us withhold shares with a value on the vesting date equal to taxes thatthe associated taxes.  In a departure from historical grant practices, the annual awards (which typically are owed.
We entered into a three-year employment agreement with Mr. Duanemade in March 2018. April) were made in two tranches for 2020 — the first in April and the second in September to the approximately 1,300 participating PVH associates. The agreement provided for him to receive a one-time grantApril awards consisted of the same numbers of stock options and RSUs with a targetas were awarded in 2019. However, since the stock price on the April 2020 grant date value($47.96) was approximately 38% of $3,300,000, and for nothe stock options to be granted. The targetprice on the 2019 grant date value was equal to three times($127.26), the aggregate target grant date value of the annual RSUs and2020 awards was significantly less than the grant date value of the 2019 awards. The September awards consisted of a number of stock options and RSUs that, he had received previously. These RSUs will vestwhen combined with the April awards, would have an aggregate value equivalent to each NEO’s standard annual grant value for each type of award. The April grants were made in one-third increments onthe manner described because of the volatility in our stock price at the time and concerns that a full regular grant in that turbulent market might be seen as unfair to stockholders. (Our closing stock price ranged from $29.05 to $90.00 during the first secondquarter 2020.) The April grants were made to maintain some regularity in our compensation program. More importantly, they provided an incentive to our associates (including our NEOs), who were agreeing at the same time to significant salary reductions and thirdalso had been informed that bonus awards were not being made at that time (when they normally would be) and, that when the bonus awards were made, would be at a reduced payout opportunity (50% in the case of the NEOs). The September grants were made when the Compensation Committee determined that a sufficient level of stability had returned to the stock market and that making the awards at that time could not be misconstrued as taking advantage of a low stock price. The value of awards granted in 2020 was not adjusted to reflect the fact that the PSUs for the performance period that ended in April 2020 did not pay out and the awards for the performance cycle ending in April 2021 likely would not pay out, at least in part due to the impact of the pandemic on our stock performance. Mr. Hagman also received a grant of stock options and an additional grant of RSUs, each on standard terms, in June 2020 in connection with his promotion. Additionally, he received a special grant of RSUs in August 2020 that vests 25% on each of the first and second anniversaries of the grant date.date and 50% on the third anniversary. The August grant was made to further align his performance incentives with the interests of stockholders after assessing his compensation package and his outstanding stock awards. PVH CORP. 2021 PROXY STATEMENT | 51 Compensation Discussion & Analysis Compensation Decisions for 2020 Long-Term Incentives—Incentives — Performance Share Units Annual grants under our 2006 Stock Incentive Plan of performance share units provide compensation that is at risk and contingent on the achievement of pre-determined performance criteria over an extended period. Performance share units also link to our performance and align with stockholder interests because their value will increase if our stock price is higher at the end of the performance cycle than it was on the grant date (and will decrease if the stock price is lower). Performance share units have retentive value because they generally only pay out if the participant remains employed by PVH for the entire performance cycle. Performance share unit awards granted in 20182020 have a three-year performance cycle and will vest (or not) based on PVH’s performance against two financial metrics: absolute stock price performance (50% weight) and relative total stockholder return against the S&P 500 as constituted on the grant date (50% weight). We believe this structure for the awards provides a balanced focus on driving long-term financial performance, with the ultimate goal of creating value for our stockholders. WeThe Compensation Committee regularly reviewreviews the financial metrics and consider alternatives butconsiders alternatives. We determined in 2020 to continue to believe that relative total stockholder return and absolute stock price performance best reflect increases in value forusing these measures given their alignment with the long-term interests of our stockholders. We also believe it is important to use different financial measures for annual and long-term incentive awards. To reinforce the long-term focus these awards are meant to create, Mr. Chiricoour Chief Executive Officer is required to hold for one year the after-tax shares he receivesreceived upon payout. This holding requirement is in addition to histhe CEO’s stock ownership guideline. For 2020, only Mr. Chirico’s awards have this requirement, as Mr. Larsson was not Chief Executive Officer when the 2020 awards were made. 2020 decisions  See “Stock Ownership Requirements” on page 47.
| | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | | | 41 | | |
CD&A Compensation Decisions for 2018
2018 PSU awards
All of our Named Executive Officers received awards of performance share units in 20182020. As with respect tothe other stock awards, they were made in two tranches, one in April and one in September.The April award has a performance cycle generally covering the second quarter of 20182020 through the first quarter of 2021. Potential payouts2023, while the second award has a performance cycle generally covering the second half of these awards are determined by takingSeptember 2020 through the applicable monetary amounts at threshold, target, and maximum and converting each amount to a numberfirst half of shares based on the value of our common stock when the award is granted. September 2023.Performance measures The NEOs’ performance share unit awards are subject to achievement of absolute stock price growth and relative TSR against prescribed targets. The Compensation Committee set target performance for both metrics at levels higher than median performance by the S&P 500. (The median three-year return forsame level as grants over the S&P 500 averaged 8% for the last tenpast several years.) The performance goals are shown below. | | | | Threshold* | | | Target* | | | Maximum* | | | Compound annual growth in stock price (%) | | | 5 | | | 10 | | | 20 | | | Relative TSR (percentile) | | | 30th | | | 55th | | | 80th | |
*
| | Weight | Threshold* | Target* | Maximum* | | Compound annual growth in stock price (%) | 50% | 5 | 10 | 20 | | Relative TSR (percentile) | 50% | 30th | 55th | 80th |
| * | These goals are presented solely for the purpose of describing our compensation program. They are not management’s estimates of results or other guidance. Investors should not apply these goals to other contexts. |
Payouts for performance between goals are presented solelycalculated on a straight-line interpolation basis for the purpose of describing our compensation program. They are not management’s estimates of results or other guidance. Investors should not apply these goals to other contexts.above and below the performance achieved. 52 | PVH CORP. 2021 PROXY STATEMENT Compensation Discussion & Analysis Compensation Decisions for 2020 The following table shows the potential payouts and the aggregate number of shares each payout represents on the two grant date. | Name | | | Threshold
($)1 | | | Threshold
(# shares) | | | Target
($)1 | | | Target
(# shares) | | | Maximum
($)1 | | | Maximum
(# shares) | | | EMANUEL CHIRICO | | | | | 2,567,686 | | | | | | 16,022 | | | | | | 5,135,211 | | | | | | 32,043 | | | | | | 10,270,262 | | | | | | 64,085 | | | | MICHAEL A. SHAFFER | | | | | 285,423 | | | | | | 1,781 | | | | | | 570,846 | | | | | | 3,562 | | | | | | 1,141,532 | | | | | | 7,123 | | | | FRANCIS K. DUANE | | | | | 190,389 | | | | | | 1,188 | | | | | | 380,618 | | | | | | 2,375 | | | | | | 761,075 | | | | | | 4,749 | | | | DANIEL GRIEDER | | | | | 95,194 | | | | | | 594 | | | | | | 190,389 | | | | | | 1,188 | | | | | | 380,618 | | | | | | 2,375 | | | | STEVEN B. SHIFFMAN | | | | | 190,389 | | | | | | 1,188 | | | | | | 380,618 | | | | | | 2,375 | | | | | | 761,075 | | | | | | 4,749 | | |
1
dates.| NEO | | Grant Dates | | Threshold
($)1 | | Threshold
(# shares) | | Target
($)1 | | Target
(# shares) | | Maximum
($)1 | | Maximum
(# shares) | | EMANUEL CHIRICO | | 4/29/2020, 9/10/2020 | | 2,449,695 | | 40,370 | | 4,899,336 | | 80,739 | | 9,798,671 | | 161,478 | | MICHAEL A. SHAFFER | | 4/29/2020, 9/10/2020 | | 247,362 | | 4,121 | | 494,670 | | 8,241 | | 989,340 | | 16,482 | | STEFAN LARSSON | | 4/29/2020, 9/10/2020 | | 693,070 | | 12,053 | | 1,386,140 | | 24,106 | | 2,772,281 | | 48,212 | | CHERYL ABEL-HODGES | | 4/29/2020, 9/10/2020 | | 171,009 | | 2,849 | | 341,963 | | 5,697 | | 683,927 | | 11,394 | | MARTIJN HAGMAN2 | | 6/15/2020, 9/10/2020 | | 82,368 | | 1,414 | | 164,686 | | 2,827 | | 329,372 | | 5,654 |
| 1 | The award values are equal to the number of shares multiplied by $53.95 and $67.05, the closing price of our common stock on the applicable grant dates. The award values are not calculated in the same manner as the grant date fair values we are required to include in the Summary Compensation Table, which begins on page 61 | | | | 2 | Mr. Hagman was not eligible for a PSU grant in April. The June award was granted in connection with Mr. Hagman’s promotion, and the value is equal to the number of shares multiplied by $50.17, the closing price of our common stock on the grant date. The award value is not calculated in the same manner as the grant date fair values we are required to include in the Summary Compensation Table, which begins on page 61. |
PSUs granted in 2018 and 2019 We do not adjust performance goals for outstanding awards that we believe will not pay out. Consistent with that practice, we did not alter the numberperformance measures for PSU grants made in 2018 and 2019 despite the fact that the impact of shares multiplied by $160.26, the closingpandemic on our stock price of our common stock on the grant date. The award values are not calculated in the same manner as the grant date fair values we are required to include in the Summary Compensation Table, which begins on page 51.
2018 Results
We made it unlikely that these awards would pay out.There were no payouts of PSU awards for the three-year performance cycle that commenced April 26, 201623, 2018 and ended on April 25, 2019. 22, 2021, as the performance measures established at the time of grant were not achieved. We consider thesePSU awards to be part of the compensation paid to the NEOs asin the last full year of the end of 2018. ■
performance cycle even though the performance periods do not align fully with fiscal years.The TSR portionfollowing graphic demonstrates the rigor of the performance-based awards paid out between threshold and target levels, asmade to our TSR was in the 45NEOs based on historical payouts: 
PVH CORP. 2021 PROXY STATEMENT | 53 thCOMPENSATION DISCUSSION & ANALYSIS percentile against the S&P 500 companies asCOMPETITIVE PAY FOR PERFORMANCE
COMPETITIVE PAY FOR PERFORMANCE Peer Group All of the grant date.
■
The absolute stock performance portion of the awards paid out slightly below target level, as our stock price improved approximately 9.5% on an annualized basis over the period.
Long-Term Incentives—2017 GRIP Awards
We granted GRIP awards under our cash-based Long-Term Incentive Plan in 2017 to incentivize Messrs. Duane, Grieder and Shiffman to drive the long-term strategy of their respective businesses, stimulate an entrepreneurial culture and enhance retention. These awards are unique to each participant’s business or businesses and are dependent upon the participants’ individual performance and the performance of their respective teams. We made similar awards, with consistent goals, to other executives within these business units to reflect their roles. The performance measure used for each NEO’s GRIP award is the EBIT of the NEO’s business unit(s) tied to the applicable three-year plan.
| | 42 | | | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | |
CD&A Compensation Decisions for 2018
Competitive Pay for Performance
Peer Group
ClearBridge reviews with the Committee annually the compensation peer group used in the prior year, along with potential additions or deletions from the group. The companies in the proposed peer group are involved in the wholesale or retail sales of apparel and related products, use similar channels of distribution, and are of a comparable size to PVH. The Committee reviews, considers, and approves the peer group annually.annually after receiving input from ClearBridge regarding potential additions to or deletions from the group. Factors deliberated include changes to a peer company’s business that make our companies less comparable; pending acquisitions involving a peer company; a material change in a peer company’s financial condition or results of operations; and a diminution in the amount and quality of compensation information available regarding a peer company’s executives.
We use the peer group to provide market context for compensation decisions, both because these are the companies with which we compete for executive talent and because it helps the Compensation Committee assess the reasonableness of our compensation packages. Specifically, the Committee considers a study compiled each year by ClearBridge (using information culled from public filings and published compensation benchmark surveys) of compensation awarded to executives in the peer group as part of its review when considering compensation packages. The 20182020 peer group consisted of companies with wholesale or retail apparel, accessories or related products businesses, andas well as specialty retailers. The peer group companies had revenues for their most recently completed fiscal years between approximately 50% and 200% of our annual revenue, as shown below. We did not make any changes in our peer group for 2018 from the group used for 2017. | Company | Industry | Most Recent
Fiscal Year Revenue | Enterprise Value
(as of 1/31/21) | | The Estée Lauder Companies, Inc. | Personal Products | $14,294 | $89,417 | | The Gap, Inc. | Apparel Retail | $13,800 | $12,861 | | Ross Stores, Inc. | Apparel Retail | $12,532 | $41,029 | | L Brands, Inc. | Apparel Retail | $11,847 | $18,371 | | V.F. Corporation | Apparel, Accessories and Luxury Goods | $10,489 | $33,425 | | Foot Locker, Inc. | Apparel Retail | $7,548 | $6,400 | | PVH Corp. | Apparel, Accessories and Luxury Goods | $7,133 | $10,008 | | Hanesbrands Inc. | Apparel, Accessories and Luxury Goods | $6,664 | $9,076 | | Ralph Lauren Corporation | Apparel, Accessories and Luxury Goods | $6,160 | $8,549 | | Capri Holdings Limited | Apparel, Accessories and Luxury Goods | $5,551 | $10,031 | | Tapestry, Inc. | Apparel, Accessories and Luxury Goods | $4,961 | $11,636 | | Levi Strauss & Co. | Apparel, Accessories and Luxury Goods | $4,453 | $8,912 | | Tiffany & Co.1 | Specialty Stores | $4,424 | N/A |
| 1 | LVMH’s acquisition of Tiffany & Co. was closed on January 7, 2021 and, therefore, Tiffany & Co. will not be included in the peer group going forward. |
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54 | PVH CORP. 2021 PROXY STATEMENT | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | | | 43 | | |
CD&A COMPENSATION DISCUSSION & ANALYSIS Compensation Decisions for 2018COMPETITIVE PAY FOR PERFORMANCE
PVH Performance Compared to Peer Group Performance We have consistently been among the best inThe following shows our performance against our peer group in terms offor the one- and three-year periods ended 2020 based on revenue growth, earnings per shareEBITDA, and TSR,overall ranking, as shown below. 1
Earnings per share amounts used are on a non-GAAP basis,well as reported by us.
2
Total stockholder return vs. S&P 500 is based on TSR for the S&P 500 companies as of March 12, 2019, which differs fromthree-year period. It also shows our outperformance against our peers for the S&P 500 companies used to determine the performance share units payout fornine-month period corresponding the performance period ended April 25, 2019 (see discussion on page 41).
3
Overall percentile ranking excludes TSR vs. S&P 500.
PVH Executive Compensation Compared to Peer Group Compensation
The charts below, which compare the compensation awarded tofor our NEOs to the compensation awarded to their counterparts in our peer group, demonstrate that the compensation paid to our NEOs is generally consistent with our competitive performance.
“Total cash compensation” consists of salary and bonus.
For the NEOs, “total compensation” consists of salary, bonus, the value of stock option and restricted stock unit grants made in 2018, and the value of the payouts received on PSUs for the performance cycle ended April 25, 2019. For peer group executives, “total compensation” includes the value at target of the long-term incentive awards granted in 2018.
2020 bonuses.
1 | Included because performance period for 2020 bonus awards was the nine-month period. | | 2 | 44Earnings before interest, taxes, depreciation and amoritization amounts used are on a non-GAAP basis. | | 3 | Total Stockholder Return vs. S&P 500 is based on the S&P companies as of March 8, 2021, which differs from the S&P 500 companies used to determine the performance share unit achievement against goals for the performance period ended on April 22, 2021 (see page 53 for additional details). | | 4 | | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | Overall percentile ranking excludes Total Stockholder Return vs S&P 500. |
CD&A Compensation Decisions for 2018
Similarly, the distribution of our executive compensation among long- and short-term elements, and fixed and variable elements, is consistent with the distribution within our peer group. 
| 1 | Excludes Tapestry, Inc. CEO because specific pay mix not disclosed. |
PVH CORP. 2021 PROXY STATEMENT | 55 COMPENSATION DISCUSSION & ANALYSISOTHER BENEFITS CEO Compensation Compared to Total Stockholder Return The following graph illustrates the strong alignment of our compensation program with the creation of long-term stockholder value. It shows Mr. Chirico’s target total compensation and actual total compensation for each of 2016, 20172018, 2019 and 20182020 as compared to our one-year and cumulative three-year TSR for each of those years. The alignment of pay also is consistent with TSR for the S&P 500 index, as shown below the following graph. Target total The compensation consists of salary, target bonus,set forth below is not the value of stock option and restricted stock unit grants made in each year, and the target value of performance share unit awards for the performance cycle beginning in each year.
Actual total compensation includes actual salary, actual bonus paid, the value of stock option and restricted stock unit grants made in each year and, for 2018, the valuesame as of April 25, 2019, of the payout earnedshown on the PSUs for the performance cycle ended on that date.
Summary Compensation Table.
1 | For 2020, Target Total Compensation reflects the CEO's standard pay opportunities and does not take into account reductions due to the COVID-19 pandemic. | | | | 2 | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | | | 45 | | Actual Total Compensation reflects salary paid, bonus and PSUs earned, and stock options and RSUs vested in each year. |
Other Benefits
OTHER BENEFITSOur Named Executive Officers other than Mr. Grieder, participate in our Pension Plan, Supplemental Pension Plan, Associates Investment Plan (our 401(k) plan, “AIP”"401(k) plan"), Supplemental Savings Plan, and Executive Medical Reimbursement Insurance Plan. Mr. Grieder participates inPlan with the Zwitserleven Pensioen Plan (a defined contribution plan for associates in the PVH Europe headquarters in Amsterdam). following exceptions: | ◾ | Mr. Larsson has elected not to participate in the Supplemental Savings Plan and is not eligible to participate in the Executive Medical Reimbursement Insurance Plan, as it was closed to new participants in 2017; and | | | | ◾ | Mr. Hagman is not eligible to participate in any of the plans identified above. Mr. Hagman participates in the Zwitserleven Pensioen Plan, a defined contribution plan for associates in the PVH Europe headquarters in Amsterdam. |
In addition, Messrs.Mr. Chirico and Duane are partiesis a party to a capital accumulation program agreementsagreement with PVH. See “Pension Benefits,” “Defined Benefit Plans,” and “Non-qualified Deferred Compensation” for a description of the U.S. programs. We do not expect to enter into a capital accumulation program agreement with Mr. Larsson or any other NEO.We believe the benefits offered under our retirement, pension and welfare plans serve a different purpose than the other components of compensation. In general, these benefits are designed to provide a safety net against the financial catastrophes that can result from illness, disability or death, and to provide a reasonable level of retirement income based on compensation and years of service. Benefits offered to our executive officers are similar to those that are offered to the general associate population, with some variation to promote tax efficiency and replace benefit opportunities lost due to regulatory limits. Perquisites are limited and generally consist of discounts in our retail stores available to all associates and, in certain cases, clothing allowances and gym memberships. Clothing allowances. We provided clothing allowances for purchases of CALVIN KLEIN apparel to key executives of our Calvin Klein business, including Mr. Shiffman, as well as certain other executives who regularly speak publicly in order for them to portray the image of PVH and the CALVIN KLEIN brand.
associates.Car and driver.driver. We own a car and employ a driver who drives executives to and from meetings, including among our four New York City and five New York metropolitan area offices, and provides other services (such as messenger services). Although the majority of the driver’s services (and, therefore, the costs associated with the car) are for business purposes, we allow Mr. Chirico and Mr. 56 | PVH CORP. 2021 PROXY STATEMENT COMPENSATION DISCUSSION & ANALYSIS ADMINISTRATION OF OUR COMPENSATION PROGRAMS Larsson to use the car and driver for personal purposes — generally for histheir daily commutecommutes — as we believe this accommodation enables himthem to be more productive during this time. The executives’ business and personal use of this amenity were significantly reduced during the pandemic, and we also covered commuting costs for all associates while our offices were closed.We also lease a car and employ a driver who drives executives to and from meetings, and provides other services (such as messenger services), in Amsterdam, where our European headquarters is located. The majority of the driver’s services (and, therefore, the costs associated with the car) are for business purposes, although we allowpurposes. Mr. Grieder to useHagman utilizes services of the car and driver, forincluding occasional personal purposes, which he has done onuse. Mr. Hagman also receives a limited basis. monthly car allowance.Sporting events. As part of certain marketing activities, including sponsorships of the New York Giants and the Brooklyn Nets, we havepreviously had a limited number of tickets (including use of a suite) to Giants football games at MetLife Stadium and events at the Barclays Center. These arewere provided at no cost to us and arewere available to all of our associates on a non-discriminatory basis, so, at times, they may at times behave been used personally by our NEOs. We also own rights to suitespreviously owned seats at Amsterdam Arena (home of Ajax Amsterdam, a team in the Eredivisie, the top soccer league in the Netherlands) and MetLife Stadium for the New York Jets as well asand rights for a box at Arthur Ashe Stadium for the United States Tennis Association’s U.S. Open. Although primarily used for business purposes, tickets to the suitesgames, events and box maymatches were, on occasion, be used personally by associates, including our NEOs. | | SPECIAL NOTE ABOUT BENEFITS FOR MR. GRIEDER | | | | | Mr. Grieder is a resident of Switzerland and receives an allowance to cover housing expenses while working in Amsterdam. We believe this to be a common employment practice for key executives in Europe who work outside their home countries and return to their home countries for weekends. We also pay for Mr. Grieder’s personal travel costs between Amsterdam and Zurich, subject to an annual cap, in accordance with the practice of our Amsterdam office for all executives who commute to and from a home country. Finally, we reimburse Mr. Grieder for annual tax services, subject to an annual cap. This is another benefit we provide to senior executives in Amsterdam who live in other countries. | | |
| | 46 | | | | | | | PVH CORP. 2019 PROXY STATEMENT
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The sponsorships were ended in 2020 and all sporting events that took place did so without fans in attendance.TABLEADMINISTRATION OF CONTENTS
OUR COMPENSATION PROGRAMSStock Ownership Requirements CD&A AdministrationOur Chief Executive Officer is required to hold shares of our Compensation Programs Administration of our Compensation Programs
Stock Ownership Requirements
Requirement Multiples 
| Our Chief Executive Officer is required to hold shares of our common stock with an aggregate value equal to six times his annual base salary. Our other NEOs must hold our common stock with an aggregate value equal to three times their respective annual base salaries. In addition, Mr. Chirico must hold for one year the after-tax payouts of his PSU awards. NEOs who are not in compliance with their ownership guideline must hold 50% of their after-tax shares received upon vesting or exercise of awards until they are in compliance. As of the date of this Proxy Statement, all of the NEOs are in compliance with our stock ownership guidelines. | | | | |
Executive officers are required to meet the ownership requirements within five years of becoming subject to them. As of the record date for the meeting, all of the NEOs and Mr. Larsson are in compliance with our stock ownership guidelines. Use of Non-GAAP Results Performance targets based on corporate or business unit performance are typically measured on a non-GAAP basis. The Compensation Committee determines at the time it establishes the targets certain types of expenses, costs, and other matters (such as acquisitionacquisitions, divestitures, restructurings and related restructuring and integration costs and subsequentany discrete tax events, including changes in tax rates or accounting rules)tax laws) that it believes should not affect the calculation of the achievement of a performance goal. Business unit performance targets also typically exclude corporate allocations, costs associated with corporate initiatives, and other matters that management recommends to the Committee should not be considered. The corporate and business unit earningsEBITDA targets discussed in this Proxy Statement all include adjustments and exclusions of the type discussed above. These adjustments and exclusions may differ from those used by management when providing guidance and discussing results. As a result, the earnings results and targets discussed in this sectionCD&A may differ from, or may not in the future be aligned with, our reported earnings. results.Timing of Equity Awards Our equity award policy provides that the annual grant of stock options and restricted stock units to our senior executives, including our NEOs, generally will be approved by the Compensation Committee at a meeting held during the period commencing two days after the public release of the prior year’s earnings results and ending two weeks before the end of the first fiscal quarter of the current year. PSU awards are made later in the first quarter to provide time to finalize financial goals and, because the goals include stock price performance, so that the end of the performance cycle occurs shortly after we report our year-end earnings. PVH CORP. 2021 PROXY STATEMENT | 57 COMPENSATION DISCUSSION & ANALYSIS ADMINISTRATION OF OUR COMPENSATION PROGRAMS Equity awards may be made to our NEOs outside of the annual grant process in connection with a promotion or assumption of new or additional duties, or for another appropriate reason. All such grants to our NEOs must be approved by the Committee and generally will be made on the first business day of the month following the effective date of the precipitating event (or on the effective date, if it is the first business day of a month). The Committee retains the discretion not to make grants at the times provided in the equity award policy if the members determine the timing is not appropriate, such as if they are in possession of material non-public information. Additionally, the Committee retains the discretion to make grants, including an annual equity grant, at times other than as provided in the policy if the members determine circumstances, such as changes in accounting and tax regulations, warrant taking such an action. As discussed above, in 2020, we varied from the policy by granting equity awards in two tranches rather than one.Prohibition on Pledging and Hedging We have a comprehensive Insider Trading Policy that includes a prohibition on pledging our securities or holding our securities in a margin account oraccount. Additionally, the policy prohibits engaging in hedging, monetization and similar transactions in respect of our securities. This policy, applicable to all officers, directors and directors,associates, was put in place to ensure that the interests of these individuals remain aligned with those of our stockholders, and that they continue to have the incentive to execute our long-term plans and achieve the performance for which their equity awards are intended. | | | | | PVH CORP. 2019 PROXY STATEMENT
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CD&A Administration of our Compensation Programs
Through 2017, all of our incentive compensation plans had provisions that allow us to seek recovery against individual executive officers for incentive compensation paid in certain events due to fraud or misconduct. In 2018, we adopted aOur Clawback Policy that permits us to recover compensation in the event of a restatement of our financial statements or a material violation of a material company policy. Awards made under our stock and incentive compensation plans are subject to the Clawback Policy.Internal Pay Equity We do not have a policy regarding internal pay equity but we do review compensation levels to ensure that appropriate internal pay equity exists. In some cases, there are differences in the compensation packages awarded to our Named Executive Officers, such as differences in the percentage of base salary payable under our incentive awards. These differences are largely the result of benchmarking but also reflect considerations such as the NEO’s seniority relative pay and tenure. With these exceptions, our policies and decisions relating to our NEO compensation packages are substantially identical. The following graphs show the ratios of Mr. Chirico’s target total direct compensation to that of the next highest paid executive officer and to that of all the other NEOs for each of the past three years. CEO Target Total Direct Compensation vs.
2nd Highest Paid Named Executive Officer
($ in millions) | | CEO Target Total Direct Compensation vs.
All Other Named Executive Officers
($ in millions) | | | |  | |  |
Federal Income Tax Deductibility of Executive Compensation Through 2017, Section 162(m) of the Code generally limited to $1 million per year the amount a publicly held corporation could deduct as a business expense in respect of compensation paid to the company’s chief executive officer and the three other most highly compensated executive officers, other than the chief financial officer. The limit was subject to certain exceptions, including an exclusion for qualified performance-based compensation. Compensation paid or received under our incentive plans (other than solely time-based restricted stock and restricted stock units) has been generally was intended to satisfy the requirements for deductibility. 58 | PVH CORP. 2021 PROXY STATEMENT COMPENSATION DISCUSSION & ANALYSISRISK CONSIDERATIONS IN COMPENSATION PROGRAMS Nonetheless, our compensation philosophy and decisions were and are driven by factors other than deductibility. In some instances, we determined it was in our best interest to provide compensation that was not fully deductible. This was the case, for example, when Mr. Chirico’s and Mr. Duane’s base salaries were set. The U.S. Tax Cuts and Jobs Act of 2017 made certain changes to Section 162(m), effective for tax years beginning after December 31, 2017. These changes include in part, subjecting the compensation of a company’s chief financial officer to the $1 million per year deduction limit and generally eliminating the exclusion for qualified performance-based compensation (though there was some transition relief for certain performance-based compensation paid pursuant to a written agreement that was in effect on November 2, 2017).compensation. We have not made any material changes to our compensation program in response to the legislation, although we did eliminate from our annual restricted stock unit and bonus awards granted in 2018 the adjusted net income goals that had been implemented solely to satisfy Section 162(m). | | 48 | | | | | | | PVH CORP. 2019 PROXY STATEMENT
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CD&A Risk Considerations in Compensation Programs
legislation.Employment Agreements, Termination of Employment, and Severance We have employment agreements with all of our actively employed Named Executive Officers that generally provide them with severance benefits and provide usPVH with the protections of restrictive covenants. We use employment agreements to attract and retain qualified executives who could have job alternatives they might otherwise accept. Mr. Duane is the only NEO with an agreement for a fixed term. All the agreements, other agreementsthan Mr. Chirico’s and Mr. Hagman’s, are evergreen, althoughevergreen. Mr. Grieder’sChirico’s agreement terminates on December 31, 2021, and Mr. Hagman’s is subject to a statutory retirement age. The material terms of these agreements are described under the heading “Employment Contracts,” beginning on page 55. 65. Exhibit B provides a list of the SEC filings that have an NEO employment agreement as an exhibit. ClearBridge has advised us that the employment agreements for our U.S.-based executives provide benefits that are generally “market,” particularly within our industry peer group. The severance multipliers under the NEOs’ agreements are as follows: | NEO | | | Ordinary termination | | | Termination following change in control | EMANUEL CHIRICO1 | Remaining portion of base salary through 12/31/2021 | Remaining portion of base salary through 12/31/2021 | EMANUEL CHIRICOMICHAEL A. SHAFFER | | | 2x1.5x base salary and target bonus | 2x base salary and target bonus | | STEFAN LARSSON | | 3x2x base salary and target bonus | 2x base salary and target bonus | MICHAEL A. SHAFFERCHERYL ABEL-HODGES | | | 1.5x2x base salary and target bonus | 2x base salary and target bonus | | MARTIJN HAGMAN | | 2x1x base salary and target bonus | | FRANCIS K. DUANE | | | Remainder of the compensation due under his employment contract | | | Remainder of the compensation due under his employment contract | | DANIEL GRIEDER | | | 1x base salary or, if greater, statutory severance, plus a prorated portion of target bonus | | | 1x base salary or, if greater, statutory severance, plus a prorated portion of target bonus | | STEVEN B. SHIFFMAN | | | 2xbase salary and target bonus |
| | | 1 | 2x base salaryRepresents Mr. Chirico’s right to severance under his current employment agreement and target bonus | not the employment agreement in effect on the last day of 2020. It differs from the severance presented elsewhere, including on the Potential Payments Upon Termination and Change in Control Provisions table. |
Change in Control Provisions in Equity Plans and Awards Our 2006Awards under our Stock Incentive Plan was amended in 2014 to provide that awards vest after a change in control (provided the awards are assumed by the acquirer) upon the earlier of the original vesting date and a termination of employment (other than for cause or voluntarily without good reason) within two years of the change in control (i.e.(i.e., double trigger). The equity awards we granted prior to 2014 automatically vest upon a change in control (i.e., single trigger). Risk Considerations in Compensation Programs
RISK CONSIDERATIONS IN COMPENSATION PROGRAMS Our compensation program is a pay-for-performance model; performance-based incentives constitute a significant portion of the compensation packages awarded to executives. We believe it is important to ensure that these incentives do not indirectly encourage our associates to take actions that may conflict with our long-term best interests. We address this concern in several ways. Pay mix. We believe that base salaries, which do not engender risky behavior, are a sufficient component of total compensation to retain and motivate our executives. Incentive compensation consists of both short-term and long-term incentives, which encourages associates to focus on both short-term results and long-term sustainable performance. Although the majority of pay is variable, incentive compensation is heavily weighted towards long-term components. These factors discourage risk-taking. Capped awards. The payouts on annual bonus and performance share unit awards are capped, even if our performance exceeds the predetermined goals. This mitigates the risk that associates may take unwise actions to enhance our performance. PVH CORP. 2021 PROXY STATEMENT | 59 COMPENSATION DISCUSSION & ANALYSIS COMPENSATION COMMITTEE REPORT Long-term performance. Performance share unit awards are based upon our performance over a three-year period, which reduces any incentive to take short-term risks. In addition, the performance measures we use align management and stockholder interests. The outstanding awards are subject to goals for absolute stock price appreciation and relative total stockholder return goals. return.Vesting over extended periods. Stock options and restricted stock units generally do not vest fully for four years. This longerlengthy vesting period discourages unnecessary or excessive risk-taking. Additionally, our Insider Trading Policy prohibits hedging and other activities that could offset the benefits of having these as long-term awards. | | | | | PVH CORP. 2019 PROXY STATEMENT
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CD&A Compensation Committee Report
Performance metrics and goals. The earnings goals for annual bonus awards made to our senior executives, including the NEOs, are based upon our annual budgets, which are reviewed and approved by the Board. (The unique circumstances in 2020 required a different process, which is described on page 47). We believe these goals are sufficiently challenging but attainable without the need to take inappropriate risks or make material changes to our business or strategy. The bonuses payable under the annual management bonus programs, in which certain other executives participate, are based on the same performance measures as those that apply to NEO bonuses, which means that all of our associates are pursuing complementary goals, and all of those goals are consistent with stockholder interests. The one bonus plan we have in which associates may receive bonuses based upon financial metrics that differ from those in our Performance Incentive Bonus Plan and our annual management bonus program provides de minimis bonuses. bonuses. Recoupment. We adopted a Clawback Policy in 2018 that allows us to recover any incentive compensation paid or granted to any current or former Section 16 officer (the executives whose compensation is subject to Compensation Committee review and approval) in the event of a restatement of our financial statements or a material breach of a material company policy. Previously, our incentive plans provided for the recovery or cancellation of part or all of a particular participant’s bonuses and awards in the event we restated our financial results to correct a material error or inaccuracy resulting in whole or in part from the fraud or intentional misconduct of that participant. Equity ownership. Incentive compensation has a large stock component to it. The value of equity awards is best realized through long-term appreciation of stockholder value, especially when coupled with our stock ownership guidelines. Since our NEOs are required to hold a prescribed amount of our common stock, it is in their interest not to jeopardize stock appreciation. ClearBridge identified the above items in a risk assessment of each component of the compensation program for our NEOs that was presented to the Compensation Committee. We believe the assessment is applicable to the potential risks arising in connection with compensating our associates as well, since the programs and metrics are similar. Accordingly, we do not believe there are any risks arising from our overall compensation program that are reasonably likely to have a material adverse effect on PVH. Compensation Committee Report
COMPENSATION COMMITTEE REPORT The Compensation Committee of the Board of Directors has reviewed and discussed with management the Compensation Discussion and Analysis section of this Proxy Statement. Based on this review and discussion, the Committee has recommended to the Board that the Compensation Discussion and Analysis section be included in this Proxy Statement. Compensation Committee Amanda Sourry, Chair Henry Nasella Chairman
Allison Peterson Craig Rydin
Amanda Sourry 60 | PVH CORP. 2021 PROXY STATEMENT | | 50 | | | | | | | PVH CORP. 2019 PROXY STATEMENT
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Executive Compensation Tables Summary Compensation Table
SUMMARY COMPENSATION TABLE The Summary Compensation Table includes the 2016, 20172018, 2019 and 20182020 compensation data for our Named Executive Officers. Name
and Principal Position | | | Fiscal
Year | | | Salary
($) | | | Bonus
($) | | | Stock
Awards1
($) | | | Option
Awards2
($) | | | Non-Equity
Incentive Plan
Compensation3
($) | | | Change in
Pension Value and
Non-qualified
Deferred
Compensation
Earnings4
($) | | | All Other
Compensation5
($) | | | Total
($) | | EMANUEL CHIRICO,
Chairman and Chief Executive
Officer, PVH Corp. | | | | | 2018 | | | | | | 1,450,000 | | | | | | 0 | | | | | | 8,008,708 | | | | | | 2,054,910 | | | | | | 4,736,850 | | | | | | 609,305 | | | | | | 205,831 | | | | | | 17,065,604 | | | | | | | 2017 | | | | | | 1,350,000 | | | | | | 0 | | | | | | 6,846,778 | | | | | | 2,280,669 | | | | | | 4,050,000 | | | | | | 2,493,110 | | | | | | 197,008 | | | | | | 17,217,565 | | | | | | | 2016 | | | | | | 1,350,000 | | | | | | 0 | | | | | | 6,867,719 | | | | | | 2,491,935 | | | | | | 4,050,000 | | | | | | 1,184,388 | | | | | | 150,488 | | | | | | 16,094,530 | | | MICHAEL A. SHAFFER,
Executive Vice President and Chief Operating & Financial Officer, PVH Corp. | | | | | 2018 | | | | | | 916,667 | | | | | | 0 | | | | | | 1,399,812 | | | | | | 809,280 | | | | | | 1,460,483 | | | | | | 233,719 | | | | | | 89,336 | | | | | | 4,909,297 | | | | | | | 2017 | | | | | | 900,000 | | | | | | 0 | | | | | | 1,350,940 | | | | | | 619,565 | | | | | | 1,800,000 | | | | | | 797,833 | | | | | | 81,563 | | | | | | 5,549,901 | | | | | | | 2016 | | | | | | 891,667 | | | | | | 0 | | | | | | 1,251,912 | | | | | | 673,785 | | | | | | 1,575,000 | | | | | | 349,103 | | | | | | 61,320 | | | | | | 4,802,787 | | | FRANCIS K. DUANE,
Vice Chairman, PVH Corp. and Chief Executive Officer, Heritage Brands | | | | | 2018 | | | | | | 1,141,667 | | | | | | 0 | | | | | | 3,699,810 | | | | | | 0 | | | | | | 1,552,035 | | | | | | 377,725 | | | | | | 101,148 | | | | | | 6,872,385 | | | | | | | 2017 | | | | | | 1,116,667 | | | | | | 0 | | | | | | 950,696 | | | | | | 452,115 | | | | | | 1,968,750 | | | | | | 1,427,958 | | | | | | 40,861 | | | | | | 5,957,047 | | | | | | | 2016 | | | | | | 1,091,667 | | | | | | 0 | | | | | | 1,051,384 | | | | | | 584,660 | | | | | | 1,925,000 | | | | | | 700,633 | | | | | | 72,561 | | | | | | 5,425,905 | | | DANIEL GRIEDER6,
Chief Executive Officer, Tommy Hilfiger Global and PVH Europe | | | | | 2018 | | | | | | 997,686 | | | | | | 0 | | | | | | 900,127 | | | | | | 708,120 | | | | | | 1,948,029 | | | | | | N/A | | | | | | 122,478 | | | | | | 4,676,440 | | | | | | | 2017 | | | | | | 1,014,044 | | | | | | 0 | | | | | | 1,400,498 | | | | | | 576,028 | | | | | | 1,903,249 | | | | | | N/A | | | | | | 147,328 | | | | | | 5,041,147 | | | | | | | 2016 | | | | | | 937,209 | | | | | | 0 | | | | | | 900,790 | | | | | | 631,005 | | | | | | 1,682,014 | | | | | | N/A | | | | | | 152,971 | | | | | | 4,303,989 | | | STEVEN B. SHIFFMAN,
Chief Executive Officer, Calvin Klein | | | | | 2018 | | | | | | 966,667 | | | | | | 0 | | | | | | 1,000,135 | | | | | | 606,960 | | | | | | 739,031 | | | | | | 262,996 | | | | | | 123,891 | | | | | | 3,699,680 | | | | | | | 2017 | | | | | | 941,667 | | | | | | 0 | | | | | | 1,000,831 | | | | | | 495,652 | | | | | | 1,172,410 | | | | | | 750,317 | | | | | | 87,369 | | | | | | 4,448,246 | | | | | | | 2016 | | | | | | 908,333 | | | | | | 0 | | | | | | 1,201,661 | | | | | | 538,315 | | | | | | 1,081,788 | | | | | | 367,852 | | | | | | 72,167 | | | | | | 4,170,116 | | |
1
The compensation reported representsOfficers, for the aggregate grant date fair value of RSUs and PSUs grantedyears in the fiscal year listed. These are multi-year awards that pay out in future years if performance objectives and/or service requirements are met. The reported compensation includes the full grant date value of each award in accordance with SEC rules, but we expense the cost over the period during which performance is measured or service is required.
The following sets forth the breakdown between RSUs and PSUs of the referenced stock awards:
| Name | | | Fiscal
Year | | | Restricted
Stock Units
($) | | | Performance Share
Unit Awards
($) | | | Total
Stock Awards
($) | | | EMANUEL CHIRICO | | | | | 2018 | | | | | | 3,000,067 | | | | | | 5,008,641 | | | | | | 8,008,708 | | | | | | | 2017 | | | | | | 1,850,096 | | | | | | 4,996,682 | | | | | | 6,846,778 | | | | | | | 2016 | | | | | | 1,850,244 | | | | | | 5,017,475 | | | | | | 6,867,719 | | | | MICHAEL A. SHAFFER | | | | | 2018 | | | | | | 800,577 | | | | | | 599,235 | | | | | | 1,399,812 | | | | | | | 2017 | | | | | | 750,392 | | | | | | 600,548 | | | | | | 1,350,940 | | | | | | | 2016 | | | | | | 750,196 | | | | | | 501,716 | | | | | | 1,251,912 | | | | FRANCIS K. DUANE | | | | | 2018 | | | | | | 3,300,264 | | | | | | 399,546 | | | | | | 3,699,810 | | | | | | | 2017 | | | | | | 550,260 | | | | | | 400,436 | | | | | | 950,696 | | | | | | | 2016 | | | | | | 650,011 | | | | | | 401,373 | | | | | | 1,051,384 | | | | DANIEL GRIEDER | | | | | 2018 | | | | | | 700,270 | | | | | | 199,857 | | | | | | 900,127 | | | | | | | 2017 | | | | | | 1,200,280 | | | | | | 200,218 | | | | | | 1,400,498 | | | | | | | 2016 | | | | | | 700,103 | | | | | | 200,687 | | | | | | 900,790 | | | | STEVEN B. SHIFFMAN | | | | | 2018 | | | | | | 600,589 | | | | | | 399,546 | | | | | | 1,000,135 | | | | | | | 2017 | | | | | | 600,395 | | | | | | 400,436 | | | | | | 1,000,831 | | | | | | | 2016 | | | | | | 800,288 | | | | | | 401,373 | | | | | | 1,201,661 | | |
| Name and Principal Position | Fiscal Year | Salary
($) | Bonus1
($) | Stock
Awards2
($) | Option
Awards3
($) | Non-Equity
Incentive Plan
Compensation4
($) | Change in Pension
Value and Non-
qualified Deferred
Compensation
Earnings5
($) | All Other
Compensation6
($) | Total
($) | EMANUEL CHIRICO7,
Chairman and Chief Executive Officer, PVH Corp. | 2020 | 1,125,000 | 0 | 8,000,143 | 2,000,364 | 3,000,000 | 2,168,800 | 114,628 | 16,408,935 | | 2019 | 1,500,000 | 0 | 8,000,329 | 2,024,580 | 1,965,000 | 3,720,516 | 253,888 | 17,464,313 | | 2018 | 1,450,000 | 0 | 8,008,708 | 2,054,910 | 4,736,850 | 609,305 | 205,831 | 17,065,604 | MICHAEL A. SHAFFER,
Executive Vice President and Chief Operating & Financial Officer, PVH Corp. | 2020 | 890,625 | 0 | 1,400,225 | 802,274 | 950,000 | 743,344 | 59,629 | 4,846,097 | | 2019 | 941,667 | 0 | 6,400,307 | 810,655 | 622,250 | 1,326,467 | 89,669 | 10,191,015 | | 2018 | 916,667 | 0 | 1,399,812 | 809,280 | 1,460,483 | 233,719 | 89,336 | 4,909,297 | STEFAN LARSSON7,
President, PVH Corp.
| 2020 | 1,095,000 | 0 | 3,333,533 | 1,669,116 | 1,800,000 | 210,989 | 9,975 | 8,118,613 | | 2019 | 800,000 | 1,198,440 | 3,000,044 | 1,644,055 | 0 | N/A | 13,300 | 6,655,839 | CHERYL ABEL-HODGES,
Chief Executive Officer,
Calvin Klein | 2020 | 937,500 | 0 | 1,007,629 | 593,148 | 875,000 | 472,288 | 59,503 | 3,945,068 | | 2019 | 880,625 | 0 | 850,395 | 502,360 | 1,487,500 | 606,666 | 337,093 | 4,664,639 | MARTIJN HAGMAN8,
Chief Executive Officer, Tommy Hilfiger Global and PVH Europe | 2020 | 770,372 | 0 | 1,750,124 | 352,606 | 767,515 | N/A | 33,228 | 3,673,845 |
| 1 | Mr. Larsson’s employment agreement provided that his 2019 annual bonus would be paid out at target level, prorated for the number of days actually employed. | | 2 | The compensation reported represents the aggregate grant date fair value of RSUs and PSUs granted in the fiscal year listed. These are multi-year awards that pay out in future years only if performance objectives and/or service requirements are met. The reported compensation includes the full grant date value of each award in accordance with SEC rules but we expense the cost over the period during which performance is measured or service is required. | | The following sets forth the breakdown between RSUs and PSUs of the referenced stock awards: |
| Name | Fiscal Year | Restricted
Stock Units
($) | Performance Share
Unit Awards
($) | | Total Stock
Awards
($) | | EMANUEL CHIRICO | 2020 | 3,000,059 | 5,000,084 | | 8,000,143 | | | 2019 | 3,000,282 | 5,000,047 | | 8,000,329 | | | 2018 | 3,000,067 | 5,008,641 | a | 8,008,708 | | | | | | | | | MICHAEL A. SHAFFER | 2020 | 800,156 | 600,069 | | 1,400,225 | | | 2019 | 5,800,251 | 600,056 | | 6,400,307 | | | 2018 | 800,577 | 599,235 | a | 1,399,812 | | | | | | | | | STEFAN LARSSON | 2020 | 1,666,720 | 1,666,813 | | 3,333,533 | | | 2019 | 1,500,012 | 1,500,032 | | 3,000,044 | | | | | | | | | CHERYL ABEL-HODGES | 2020 | 592,805 | 414,824 | | 1,007,629 | | | 2019 | 500,319 | 350,076 | | 850,395 | | | | | | | | | MARTIJN HAGMAN | 2020 | 1,550,057b | 200,067 | | 1,750,124 | | | | | | | |
| a | Reflects grant date value. The performance cycle for these awards ended April 22, 2021. As certified on May 3, 2021, the performance criteria were not satisfied and therefore no shares were earned. | | b | Includes special RSU grants. See discussion on page 51. |
PVH CORP. 2021 PROXY STATEMENT | 61 | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | | | 51 | | |
Executive Compensation Tables Summary Compensation Table
The fair value of RSUs is equal to the closing price of our common stock on the grant date multiplied by the number of units granted. The PSUs granted are subject to market conditions. The fair value of each suchPSU award was established on the grant date using the Monte Carlo simulation model, which was based on the following assumptions: | | | | 2018 | | | 2017 | | | 2016 | | | Weighted average grant date fair value per PSU | | | | $ | 159.04 | | | | | $ | 96.26 | | | | | $ | 86.96 | | | | Risk-free interest rate | | | | | 2.62% | | | | | | 1.49% | | | | | | 1.04% | | | | Expected annual dividends per share | | | | $ | 0.15 | | | | | $ | 0.15 | | | | | $ | 0.15 | | | | Expected Company volatility | | | | | 29.78% | | | | | | 31.29% | | | | | | 28.33% | | |
| | 2020 | 2019 | 2018 | | Weighted Average Grant Date Fair Value Per PSU | $64.81 | $119.20 | $159.04 | | Weighted Average Risk-Free Interest Rate | 0.19% | 2.13% | 2.62% | | Expected Annual Dividends Per Share | $0.15 | $0.15 | $0.15 | | Weighted Average Company Volatility | 52.05% | 30.26% | 29.78% |
The fair value of PSUs reflects the value of the award at the grant date based on the probable outcome of the performance conditions. Mr. Chirico’sChirico's awards granted in 2020, 2019 and 2018 2017 and 2016 are each subject to a holding period of one year after the applicable vesting date. For such awards, the grant date fair value was discounted 7.09%15.94%, 12.67%6.20% and 12.99%,7.09% respectively, for the restriction of liquidity, which we calculate using the Chaffe model. The value of PSUs on the grant date at the maximum performance payout level is shown in the following table and was calculated by multiplying the maximum number of shares payable by the closing price of our common stock on the grant date. | Name | | | 2018 | | | 2017 | | | 2016 | | | Emanuel Chirico | | | | $ | 10,270,262 | | | | | $ | 11,018,303 | | | | | $ | 11,621,984 | | | | Michael A. Shaffer | | | | | 1,141,532 | | | | | | 1,156,465 | | | | | | 1,010,994 | | | | Francis K. Duane | | | | | 761,075 | | | | | | 771,011 | | | | | | 808,776 | | | | Daniel Grieder | | | | | 380,618 | | | | | | 385,557 | | | | | | 404,437 | | | | Steven B. Shiffman | | | | | 761,075 | | | | | | 771,011 | | | | | | 808,776 | | |
2
| Name | 2020 | 2019 | 2018 | | EMANUEL CHIRICO | $9,798,672 | $10,256,024 | $10,270,262 | | MICHAEL A. SHAFFER | 989,340 | 1,154,596 | 1,141,532 | | STEFAN LARSSON | 2,772,281 | 2,867,040 | N/A | | CHERYL ABEL-HODGES | 683,927 | 669,011 | N/A | | MARTIJN HAGMAN | 329,372 | N/A | N/A |
| | | 3 | The compensation reported represents the aggregate grant date fair value of stock options granted to each of our NEOs in the fiscal year listed. The fair value of each award is estimated as of the grant date using the Black-Scholes-Merton option valuation model.
The following summarizes the assumptions used to estimate the fair value of stock options granted in the fiscal year listed:
| | | | 2018 | | | 2017 | | | 2016 | | | Weighted average grant date fair value per option | | | | $ | 51.60 | | | | | $ | 33.49 | | | | | $ | 35.65 | | | | Weighted average risk-free interest rate | | | | | 2.78% | | | | | | 2.10% | | | | | | 1.44% | | | | Expected annual dividends per share | | | | $ | 0.15 | | | | | $ | 0.15 | | | | | $ | 0.15 | | | | Weighted average Company volatility | | | | | 26.93% | | | | | | 29.46% | | | | | | 34.67% | | | | Weighted average expected option term, in years | | | | | 6.25 | | | | | | 6.25 | | | | | | 6.25 | | |
3
The compensation reported consists of payouts in 2019 of the annual awards granted in 2018 under our Performance Incentive Bonus Plan.
4
The compensation reported consists of the changes in values under our Pension Plan, our Supplemental Pension Plan and each U.S.-based NEO’s capital accumulation program agreement, if any, as follows:
| Name | | | Fiscal Year | | | Change in
Pension Plan Value
($) | | | Change in
Supplemental
Pension Plan Value
($) | | | Change in Capital
Accumulation
Program Value
($) | | | Change in Pension Value
and Non-qualified
Deferred Compensation
Earnings†
($) | | | EMANUEL CHIRICO | | | | | 2018 | | | | | | 21,923 | | | | | | 555,942 | | | | | | 31,440 | | | | | | 609,305 | | | | | | | 2017 | | | | | | 133,366 | | | | | | 2,190,995 | | | | | | 168,749 | | | | | | 2,493,110 | | | | | | | 2016 | | | | | | 70,979 | | | | | | 985,601 | | | | | | 127,808 | | | | | | 1,184,388 | | | | MICHAEL A. SHAFFER | | | | | 2018 | | | | | | 8,248 | | | | | | 225,471 | | | | | | N/A | | | | | | 233,719 | | | | | | | 2017 | | | | | | 125,466 | | | | | | 672,367 | | | | | | N/A | | | | | | 797,833 | | | | | | | 2016 | | | | | | 60,200 | | | | | | 288,903 | | | | | | N/A | | | | | | 349,103 | | | | FRANCIS K. DUANE | | | | | 2018 | | | | | | 25,409 | | | | | | 321,528 | | | | | | 30,788 | | | | | | 377,725 | | | | | | | 2017 | | | | | | 120,192 | | | | | | 1,151,634 | | | | | | 156,132 | | | | | | 1,427,958 | | | | | | | 2016 | | | | | | 65,797 | | | | | | 515,489 | | | | | | 119,347 | | | | | | 700,633 | | | | STEVEN B. SHIFFMAN | | | | | 2018 | | | | | | 21,873 | | | | | | 241,123 | | | | | | N/A | | | | | | 262,996 | | | | | | | 2017 | | | | | | 132,231 | | | | | | 618,086 | | | | | | N/A | | | | | | 750,317 | | | | | | | 2016 | | | | | | 70,372 | | | | | | 297,480 | | | | | | N/A | | | | | | 367,852 | | |
†
The amounts reported represent the aggregate change in the actuarial value of the NEOs’ accumulated benefits under all defined benefit plans.
Mr. Grieder is not a participant in either plan, nor does he have a capital accumulation program agreement. See discussion on page 46. Additional information regarding the two pension plans and our capital accumulation program is included in this section under the Pension Benefits table and under the heading “Defined Benefit Plans.” See page 64.
| | The following summarizes the assumptions used to estimate the fair value of stock options granted in the fiscal year listed: | | |
| | 2020 | 2019 | 2018 | | Weighted Average Grant Date Fair Value Per Option | $23.26 | $37.14 | $51.60 | | Weighted Average Risk-Free Interest Rate | 0.48% | 2.15% | 2.78% | | Expected Annual Dividends Per Share | $0.15 | $0.15 | $0.15 | | Weighted Average Company Volatility | 45.10% | 29.88% | 26.93% | | Weighted Average Expected Option Term, In Years | 6.25 | 6.25 | 6.25 |
| | | 4 | The compensation reported consists of payouts under our Performance Incentive Bonus Plan and our Long-Term Incentive Plan earned with respect to performance cycles ended with the fiscal year listed, as follows: | | |
| Name | Fiscal Year | Performance Incentive
Bonus Plan
($) | Long-Term
Incentive Plan
($) | Total Non-Equity Incentive
Plan Compensation
($) | | EMANUEL CHIRICO | 2020 | 3,000,000 | N/A | 3,000,000 | | | 2019 | 1,965,000 | N/A | 1,965,000 | | | 2018 | 4,736,850 | N/A | 4,736,850 | | | | | | | | MICHAEL A. SHAFFER | 2020 | 950,000 | N/A | 950,000 | | | 2019 | 622,250 | N/A | 622,250 | | | 2018 | 1,460,483 | N/A | 1,460,483 | | | | | | | | STEFAN LARSSON | 2020 | 1,800,000 | N/A | 1,800,000 | | | 2019 | 0 | N/A | 0 | | | | | | | | CHERYL ABEL-HODGES | 2020 | 875,000 | N/A | 875,000 | | | 2019 | 550,000 | 937,500 | 1,487,500 | | | | | | | | MARTIJN HAGMAN | 2020 | 767,515 | N/A | 767,515 | | | | | | |
62 | PVH CORP. 2021 PROXY STATEMENT | | 52 | | | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | |
Executive Compensation Tables Summary Compensation Table5
The following table provides additional information about the amounts that appear in the All Other Compensation column:
| | | | Perquisites | | | | | | Name | | | Fiscal
Year | | | Clothing
Allowancea
($) | | | Personal
Travelb
($) | | | Housing
($) | | | Otherc
($) | | | Contributions
to Defined
Contribution Plansd
($) | | | Executive
Medical
Premiums
($) | | | Other
Pension-Related
Paymentse
($) | | | Total
($) | | | EMANUEL CHIRICO | | | | | 2018 | | | | | | 0 | | | | | | 32,943 | | | | | | 0 | | | | | | 0 | | | | | | 166,438 | | | | | | 6,450 | | | | | | 0 | | | | | | 205,831 | | | | | | | 2017 | | | | | | 0 | | | | | | 27,658 | | | | | | 0 | | | | | | 0 | | | | | | 163,350 | | | | | | 6,000 | | | | | | 0 | | | | | | 197,008 | | | | | | | 2016 | | | | | | 0 | | | | | | 26,725 | | | | | | 0 | | | | | | 0 | | | | | | 117,763 | | | | | | 6,000 | | | | | | 0 | | | | | | 150,488 | | | | MICHAEL A. SHAFFER | | | | | 2018 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 82,886 | | | | | | 6,450 | | | | | | 0 | | | | | | 89,336 | | | | | | | 2017 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 75,563 | | | | | | 6,000 | | | | | | 0 | | | | | | 81,563 | | | | | | | 2016 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | — | | | | | | 55,320 | | | | | | 6,000 | | | | | | 0 | | | | | | 61,320 | | | | FRANCIS K. DUANE | | | | | 2018 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 94,698 | | | | | | 6,450 | | | | | | 0 | | | | | | 101,148 | | | | | | | 2017 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 34,861 | | | | | | 6,000 | | | | | | 0 | | | | | | 40,861 | | | | | | | 2016 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | — | | | | | | 66,561 | | | | | | 6,000 | | | | | | 0 | | | | | | 72,561 | | | | DANIEL GRIEDER | | | | | 2018 | | | | | | 0 | | | | | | 27,649 | | | | | | 56,328 | | | | | | 654 | | | | | | 14,105 | | | | | | 0 | | | | | | 23,742 | | | | | | 122,478 | | | | | | | 2017 | | | | | | 0 | | | | | | 40,283 | | | | | | 54,893 | | | | | | 3,431 | | | | | | 13,513 | | | | | | 0 | | | | | | 35,208 | | | | | | 147,328 | | | | | | | 2016 | | | | | | 0 | | | | | | 40,942 | | | | | | 53,035 | | | | | | 2,762 | | | | | | 10,552 | | | | | | 0 | | | | | | 45,680 | | | | | | 152,971 | | | | STEVEN B. SHIFFMAN | | | | | 2018 | | | | | | 47,941 | | | | | | 0 | | | | | | 0 | | | | | | 3,942 | | | | | | 65,558 | | | | | | 6,450 | | | | | | 0 | | | | | | 123,891 | | | | | | | 2017 | | | | | | 15,634 | | | | | | 0 | | | | | | 0 | | | | | | 3,672 | | | | | | 62,063 | | | | | | 6,000 | | | | | | 0 | | | | | | 87,369 | | | | | | | 2016 | | | | | | 17,152 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 49,015 | | | | | | 6,000 | | | | | | 0 | | | | | | 72,167 | | |
a
Mr. Shiffman had an allowance for purchases of CALVIN KLEIN apparel. See discussion on page 46. The amount reported in 2018 includes $36,347 for 2018 purchases and $11,594 for 2017 purchases reimbursed in 2018.
b
For Mr. Chirico, this represents personal use of a company car and driver. For Mr. Grieder, this represents personal use of a company car and driver and personal travel expense relating to travel between| 5 | The compensation reported consists of the changes in values under our Pension Plan, our Supplemental Pension Plan and for Mr. Chirico’s capital accumulation program agreement as follows: | | |
| Name | Fiscal Year | Change in Pension
Plan Value
($) | Change in Supplemental
Pension Plan Value
($) | Change in Capital
Accumulation
Program Value
($) | Change in Pension Value and
Non-qualified Deferred
Compensation Earnings†
($) | | EMANUEL CHIRICO | 2020 | 124,706 | 1,993,631 | 50,463 | 2,168,800 | | | 2019 | 217,911 | 3,330,178 | 172,427 | 3,720,516 | | | 2018 | 21,923 | 555,942 | 31,440 | 609,305 | | | | | | | | | MICHAEL A. SHAFFER | 2020 | 113,739 | 629,605 | N/A | 743,344 | | | 2019 | 234,020 | 1,092,447 | N/A | 1,326,467 | | | 2018 | 8,248 | 225,471 | N/A | 233,719 | | | | | | | | | STEFAN LARSSON | 2020 | 19,734 | 191,255 | N/A | 210,989 | | | 2019 | N/A | N/A | N/A | N/A | | | | | | | | | CHERYL ABEL-HODGES | 2020 | 80,588 | 391,700 | N/A | 472,288 | | | 2019 | 139,021 | 467,645 | N/A | 606,666 | | | | | | | |
| † | The amounts reported represent the aggregate change in the actuarial value of the NEOs’ accumulated benefits under all defined benefit plans. | | | Mr. Hagman is not a participant in either plan, nor does he have a capital accumulation program agreement. See discussion on page 56. Mr. Larsson became eligible to be a participant in the pension plans on July 1, 2020. Additional information regarding the two pension plans and our capital accumulation program is included in this section under the Pension Benefits table and under the heading "Defined Benefit Plans." See page 76. |
| | | 6 | The following table provides additional information about the amounts that appear in the All Other Compensation column: | | |
| Name | Fiscal Year | Perquisitesa
($) | Contributions to Defined
Contribution Plansb
($) | Executive Medical
Premiums
($) | Total
($) | | EMANUEL CHIRICOC | 2020 | — | 107,188 | 7,440 | 114,628 | | | 2019 | 30,151 | 217,152 | 6,585 | 253,888 | | | 2018 | 32,943 | 166,438 | 6,450 | 205,831 | | | | | | | | | MICHAEL A. SHAFFER | 2020 | 0 | 52,189 | 7,440 | 59,629 | | | 2019 | 0 | 83,084 | 6,585 | 89,669 | | | 2018 | 0 | 82,886 | 6,450 | 89,336 | | | | | | | | | STEFAN LARSSON | 2020 | 0 | 9,975 | 0 | 9,975 | | | 2019 | 0 | 13,300 | 0 | 13,300 | | | | | | | | | CHERYL ABEL-HODGES | 2020 | 0 | 52,063 | 7,440 | 59,503 | | | 2019 | — | 330,508 | 6,585 | 337,093 | | | | | | | | | MARTIJN HAGMANd | 2020 | 20,202 | 13,026 | 0 | 33,228 | | | | | | | |
| | | | a | A dash indicates that the NEO received a personal benefit but the amount was not required to be disclosed under SEC rules. | | b | For U.S.-based NEOs, this represents contributions to our our 401(k) plan and our Supplemental Savings Plan. For Mr. Hagman, this represents contributions to Zwitserleven Pensioen Plan (a defined contribution plan for our associates in our European headquarters in Amsterdam). | | c | The amount in the perquisite column represents personal use of a company car and driver. See discussion on page 56. | | d | The amount in the perquisite column represents a car allowance. See discussion on page 57. |
| | | 7 | For all of 2020, Mr. Chirico was the Chief Executive Officer and Mr. Larsson was President of PVH Corp. Mr. Larsson succeeded Mr. Chirico, who remains Chairman of the Board, effective February 1, 2021. | | 8 | Mr. Hagman’s cash compensation was paid in euros and has been converted at average euro-to-U.S. dollar exchange rates for the applicable fiscal year. The rate for 2020 was 1.1508. |
PVH Europe headquarters in Amsterdam and his home in Zurich. See discussion on page 46.
c
Other perquisites include gym memberships and personal tax services. A dash indicates that the NEO received a personal benefit but the amount was not required to be disclosed under SEC rules.
d
For our U.S.-based NEOs, this represents contributions to our AIP and our Supplemental Savings Plan. For Mr. Grieder, this represents contributions to Zwitserleven Pensioen Plan (a defined contribution plan for associates in our European headquarters in Amsterdam).
e
A change in Dutch law that became effective in 2015 limits the allowed contributions to a defined contribution plan. As a result, we implemented a plan to pay decreasing amounts to associates who participate in that plan, including Mr. Grieder, to compensate them for the difference in the amounts that would otherwise have been contributed on their behalf to the Zwitserleven Pensioen Plan. These amounts are being paid over the five-year period ending in 2019.
6
Mr. Grieder’s cash compensation was paid in euros and has been converted at euro-to-U.S. dollar exchange rates of 1.1735 for 2018, 1.1436 for 2017 and 1.1049 for 2016, which were the average exchange rates for the applicable fiscal years.
CORP. 2021 PROXY STATEMENT | 63 | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | | | 53 | | |
Executive Compensation Tables Grants of Plan-Based AwardsGrants of Plan-Based Awards
| | | | | | | | | | Estimated Future Payouts
Under Non-Equity Incentive
Plan Awards | | | Estimated Future
Payouts Under
Equity Incentive Plan Awards1 | | | All Other
Stock
Awards:
Number of
Shares of
Stock or
Units2
(#) | | | All Other
Option
Awards:
Number of
Securities
Underlying
Options3
(#) | | | Exercise or
Base Price
of Option
Awards
($/sh) | | | Grant Date
Fair Value
of Stock
and Option
Awards
($) | | | Name | | | Grant
Date | | | Threshold
($) | | | Target
($) | | | Maximum
($) | | | Threshold
(#) | | | Target
(#) | | | Maximum
(#) | | | EMANUEL CHIRICO | | | | | 4/23/2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 39,000 | | | | | | 160.26 | | | | | | 2,054,910 | | | | | | | 4/23/2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 18,720 | | | | | | | | | | | | | | | | | | 3,000,067 | | | | | | | 4/23/2018 | | | | | | | | | | | | | | | | | | | | | | | | 16,022 | | | | | | 32,043 | | | | | | 64,085 | | | | | | | | | | | | | | | | | | | | | | | | 5,008,641 | | | | | | | 4/23/20184 | | | | | | 1,500,000 | | | | | | 3,000,000 | | | | | | 6,000,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | MICHAEL A. SHAFFER | | | | | 4/6/2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 16,000 | | | | | | 156.73 | | | | | | 809,280 | | | | | | | 4/6/2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 5,108 | | | | | | | | | | | | | | | | | | 800,577 | | | | | | | 4/23/2018 | | | | | | | | | | | | | | | | | | | | | | | | 1,781 | | | | | | 3,562 | | | | | | 7,123 | | | | | | | | | | | | | | | | | | | | | | | | 599,235 | | | | | | | 4/23/20184 | | | | | | 462,500 | | | | | | 925,000 | | | | | | 1,850,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | FRANCIS K. DUANE | | | | | 4/6/2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 21,057 | | | | | | | | | | | | | | | | | | 3,300,264 | | | | | | | 4/23/2018 | | | | | | | | | | | | | | | | | | | | | | | | 1,188 | | | | | | 2,375 | | | | | | 4,749 | | | | | | | | | | | | | | | | | | | | | | | | 399,546 | | | | | | | 4/23/20184 | | | | | | 431,250 | | | | | | 862,500 | | | | | | 2,012,500 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | DANIEL GRIEDER | | | | | 4/6/2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 14,000 | | | | | | 156.73 | | | | | | 708,120 | | | | | | | 4/6/2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4,468 | | | | | | | | | | | | | | | | | | 700,270 | | | | | | | 4/23/2018 | | | | | | | | | | | | | | | | | | | | | | | | 594 | | | | | | 1,188 | | | | | | 2,375 | | | | | | | | | | | | | | | | | | | | | | | | 199,857 | | | | | | | 4/23/20184,5 | | | | | | 519,835 | | | | | | 1,039,670 | | | | | | 2,079,339 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | STEVEN B. SHIFFMAN | | | | | 4/6/2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 12,000 | | | | | | 156.73 | | | | | | 606,960 | | | | | | | 4/6/2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 3,832 | | | | | | | | | | | | | | | | | | 600,589 | | | | | | | 4/23/2018 | | | | | | | | | | | | | | | | | | | | | | | | 1,188 | | | | | | 2,375 | | | | | | 4,749 | | | | | | | | | | | | | | | | | | | | | | | | 399,546 | | | | | | | 4/23/20184 | | | | | | 365,625 | | | | | | 731,250 | | | | | | 1,706,250 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1
These amounts represent potential payouts of PSU awards. See discussion on pages 41–42.
2
These amounts represent RSU awards. See discussion on page 41.
3
These amounts represent stock option awards. See discussion on page 41.
4
These amounts represent potential payouts of cash awards under our Performance Incentive Bonus Plan with respect to 2018 performance.
5
Potential cash payouts for Mr. Grieder have been converted at a euro-to-U.S. dollar exchange rate of 1.1735, which was the average exchange rate for 2018.
GRANTS OF PLAN-BASED AWARDS| | | | Estimated Future
Payouts Under Non-Equity
Incentive Plan Awards | | Estimated Future
Payouts Under Equity
Incentive Plan Awards1 | All Other
Stock Awards: | All Other
Option
Awards
Number of: | Exercise or | Grant Date
Fair Value of | | Name | Grant Date | | Threshold
($) | Target
($) | Maximum
($) | | Threshold
(#) | Target
(#) | Maximum
(#) | Number of
Shares of
Stock or Units2
(#) | Securities
Underlying
Options3
(#) | Base Price
of Option
Awards
($/sh) | Stock and
Options
Awards
($) | | EMANUEL | 4/14/2020 | | | | | | | | | | 49,200 | 47.96 | 990,888 | | CHIRICO | 9/10/2020 | | | | | | | | | | 35,100 | 67.05 | 1,009,476 | | | 4/14/2020 | | | | | | | | | 23,576 | | | 1,130,705 | | | 9/10/2020 | | | | | | | | | 27,880 | | | 1,869,354 | | | 4/29/2020 | | | | | | 19,627 | 39,253 | 78,506 | | | | 2,133,401 | | | 9/10/2020 | | | | | | 20,743 | 41,486 | 82,972 | | | | 2,866,683 | | | 7/28/2020 | 4 | 750,000 | 1,500,000 | 3,000,000 | | | | | | | | | | | | | | | | | | | | | | | | | MICHAEL | 4/14/2020 | | | | | | | | | | 19,700 | 47.96 | 396,758 | | A. SHAFFER | 9/10/2020 | | | | | | | | | | 14,100 | 67.05 | 405,516 | | | 4/14/2020 | | | | | | | | | 6,288 | | | 301,572 | | | 9/10/2020 | | | | | | | | | 7,436 | | | 498,584 | | | 4/29/2020 | | | | | | 2,210 | 4,419 | 8,838 | | | | 282,728 | | | 9/10/2020 | | | | | | 1,911 | 3,822 | 7,644 | | | | 317,341 | | | 7/28/2020 | 4 | 237,500 | 475,000 | 950,000 | | | | | | | | | | | | | | | | | | | | | | | | | STEFAN | 4/14/2020 | | | | | | | | | | 57,600 | 47.96 | 1,160,064 | | LARSSON | 9/10/2020 | | | | | | | | | | 17,700 | 67.05 | 509,052 | | | 4/14/2020 | | | | | | | | | 18,412 | | | 883,040 | | | 9/10/2020 | | | | | | | | | 11,688 | | | 783,680 | | | 4/29/2020 | | | | | | 8,785 | 17,570 | 35,140 | | | | 1,124,129 | | | 9/10/2020 | | | | | | 3,268 | 6,536 | 13,072 | | | | 542,684 | | | 7/28/2020 | 4 | 450,000 | 900,000 | 1,800,000 | | | | | | | | | | | | | | | | | | | | | | | | | CHERYL | 4/14/2020 | | | | | | | | | | 14,600 | 47.96 | 294,044 | | ABEL-HODGES | 9/10/2020 | | | | | | | | | | 10,400 | 67.05 | 299,104 | | | 4/14/2020 | | | | | | | | | 4,660 | | | 223,494 | | | 9/10/2020 | | | | | | | | | 5,508 | | | 369,311 | | | 4/29/2020 | | | | | | 1,528 | 3,055 | 6,110 | | | | 195,459 | | | 9/10/2020 | | | | | | 1,321 | 2,642 | 5,284 | | | | 219,365 | | | 7/28/2020 | 4 | 187,500 | 375,000 | 875,000 | | | | | | | | | | | | | | | | | | | | | | | | | MARTIJN | 6/15/2020 | | | | | | | | | | 8,600 | 50.17 | 182,922 | | HAGMAN | 9/10/2020 | | | | | | | | | | 5,900 | 67.05 | 169,684 | | | 4/14/2020 | | | | | | | | | 2,360 | | | 113,186 | | | 6/15/2020 | | | | | | | | | 396 | | | 19,867 | | | 8/3/2020 | | | | | | | | | 24,376 | | | 1,200,030 | | | 9/10/2020 | | | | | | | | | 3,236 | | | 216,974 | | | 6/15/2020 | | | | | | 737 | 1,473 | 2,946 | | | | 87,644 | | | 9/10/2020 | | | | | | 677 | 1,354 | 2,708 | | | | 112,423 | | | 7/28/2020 | 4,5 | 230,160 | 460,320 | 767,515 | | | | | | | | | | | | | | | | | | | | | | | |
| 1 | These amounts represent potential payouts of PSU awards. See discussion on page 52. | | 2 | These amounts represent RSU awards. See discussion on page 51. | | 3 | These amounts represent stock option awards. See discussion on page 51. | | 4 | These amounts represent potential payout opportunities for awards under our Performance Incentive Bonus Plan with respect to 2020 performance. Non-equity incentive payout opportunity reflects a 50% reduction of the payout opportunity as part of the company’s actions taken in response to the COVID-19 pandemic. | | 5 | Potential cash payouts for Mr. Hagman have been converted at a euro-to-U.S. dollar exchange rate of 1.1508, which was the average exchange rate for 2020. |
64 | PVH CORP. 2021 PROXY STATEMENT | | 54 | | | | | | | PVH CORP. 2019��PROXY STATEMENT
| | | | | |
Executive Compensation Tables Narrative Disclosure to Summary Compensation Table and Grants of Plan-Based Awards TableNARRATIVE DISCLOSURE TO SUMMARY COMPENSATION TABLE AND GRANTS OF PLAN-BASED AWARDS TABLE Narrative Disclosure to Summary Compensation Table and Grants of Plan-Based Awards Table
Emanuel Chirico, Michael A. Shaffer, Francis K. DuaneStefan Larsson, and Steven B. Shiffman Cheryl Abel-HodgesSummary of Employment Agreements Messrs. Chirico and Larsson were parties to the employment agreements described below for all of fiscal year 2020. Mr. Chirico entered into a transition agreement that commenced on February 1, 2021 and is described in the section entitled “Emanuel Chirico — Transition Agreement” on page 67. Mr. Larsson entered into an amendment to his employment agreement that was effective February 1, 2021 and is described in the section entitled “Stefan Larsson — Amendment to Employment Agreement” on page 67. For ease of reading, the description immediately below is in the present tense even as applied to Messrs. Chirico and Larsson. Our employment agreements with each of Messrs. Chirico, Shaffer, Duane and ShiffmanLarsson, and Ms. Abel-Hodges, outline the compensation and benefits to be paid to these executives during their employment and set forth their rights to severance upon termination of employment. The agreements also include certain restrictive covenants in favor of PVH. The covenants include prohibitions during and after employment against the use of confidential information, soliciting our associates for employment by themselves or anyone else, and, other than following a termination without cause or for good reason, competing against usPVH by accepting employment or being otherwise affiliated with a competitor (for Messrs. Chirico and Duane)Larsson and Ms. Abel-Hodges) and, other than following a termination without cause or for good reason, interfering with our business relationships.relationships (for Messrs. Chirico and Larsson and Ms. Abel-Hodges, the non-interference covenant applies following a termination of employment for any reason). The agreements for Messrs. Chirico, Shaffer and Duane provide for an annual review of their respectivebase salaries and permit only upward adjustments of salary. Mr. Duane was a party to the described employment agreement for approximately the first month of 2018. Mr. Duane entered into a new employment agreement effective March 1, 2018, as described immediately below. For ease of reading, the description is in the present tense even as applied to Mr. Duane.
Termination for “cause” or “good reason.” Generally, each executive is entitled to severance only if histhe executive’s employment is terminated by PVH without “cause” or if hethe executive terminates histhe executive’s employment for “good reason.” “Cause” is generally defined as: | ◾ | for Messrs. Chirico and Larsson and Ms. Abel-Hodges only, gross negligence or willful misconduct (a) in the executive’s performance of the material responsibilities of the executive’s position that results in material economic harm to us or our affiliates or (b) that results in reputational harm causing demonstrable injury to us or our affiliates; |
■
gross negligence or willful misconduct in the executive’s performance of the material responsibilities of his position, which results in material economic harm to us or our affiliates or in reputational harm causing demonstrable injury to us or our affiliates;
■
the executive’s willful and continued failure to perform substantially his duties (other than any such failure resulting from incapacity due to physical or mental illness);
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the executive’s conviction of, or plea of guilty or nolo contendere to, a felony within the meaning of U.S. Federal, state or local law (other than a traffic violation);
■
the executive’s having willfully divulged, furnished, or made accessible any confidential information (as defined in the employment agreement); or
■
any act or failure to act by the executive that, under the provisions of applicable law, disqualifies him from acting in his position.
| ◾ | for Mr. Shaffer only, gross negligence or willful misconduct in his performance of the material responsibilities of his position, which results in material economic harm to us or our affiliates or in reputational harm causing demonstrable injury to us or our affiliates; |
| ◾ | the executive’s willful and continued failure to perform substantially the executive’s duties (other than any such failure resulting from incapacity due to physical or mental illness); |
| ◾ | the executive’s conviction of, or plea of guilty or nolo contendere to, a felony within the meaning of U.S. Federal, state or local law (other than a traffic violation) or, for Messrs. Chirico and Larsson and Ms. Abel-Hodges only, a crime of moral turpitude; |
| ◾ | the executive’s having willfully divulged, furnished or made accessible any confidential information (as defined in the employment agreement); |
| ◾ | any act or failure to act by the executive that, under the provisions of applicable law, disqualifies the executive from acting in the executive’s position; or |
| ◾ | for Messrs. Chirico and Larsson and Ms. Abel-Hodges only, any material breach of the employment agreement, our Code of Business Conduct and Ethics or any other material policy of PVH and its subsidiaries. |
“Good reason” is generally defined as: | ◾ | the assignment to the executive of any duties inconsistent in any material respect with the executive’s position or any other action that results in a material diminution in such position; |
| ◾ | for Ms. Abel-Hodges only, a change in her reporting relationship such that she no longer reports directly to the Board, Chief Executive Officer or President of PVH; |
| ◾ | a reduction of base salary; |
| ◾ | the taking of any action that substantially diminishes (a) the aggregate value of the executive’s total compensation opportunity or (b) the aggregate value of the employee benefits provided to the executive; |
| ◾ | for Mr. Larsson only, a person other than Mr. Larsson is named as the successor Chief Executive Officer to Mr. Chirico; |
| ◾ | requiring that the executive’s services be rendered primarily at a location or locations more than 35 miles (75 miles for Mr. Shaffer and Ms. Abel-Hodges) from PVH’s principal executive offices; |
| ◾ | for Mr. Chirico only, solely after a change in control of PVH, a change in the Chair of the Board of Directors such that |
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PVH CORP. 2021 PROXY STATEMENT | 65 Executive Compensation Tables Narrative Disclosure to the executiveSummary Compensation Table and Grants of any duties inconsistent in any material respect with his position or any other action that results in a material diminution in such position;
■
a reduction of base salary;
■
the taking of any action that substantially diminishes (a) the aggregate value of the executive’s total compensation opportunity or (b) the aggregate value of the employee benefits provided to him;
■
requiring that the executive’s services be rendered primarily at a location or locations more than 35 miles (75 miles for Messrs. Shaffer and Shiffman) from PVH’s principal executive offices;
■
for Mr. Chirico only, solely after a change in control of PVH, a change in the Chairman of the Board of Directors such that neither the person holding such position immediately prior to the change in control nor Mr. Chirico is not serving as the executive or non-executive Chairman at any time during the one-year period following such change in control (other than as a result of such person’sMr. Chirico’s cessation of service due to death or disability); or
■
for Messrs. Chirico and Duane, our failure to require any successor to assume expressly and agree to perform the executive’s employment agreement.
| ◾ | for Messrs. Chirico and Larsson and Ms. Abel-Hodges only, our failure to require any successor to assume expressly and agree to perform the executive’s employment agreement. |
Generally, in the event of a termination of employment without cause or for good reason, each of these executives is entitled to a multiple (one and a half times for Messrs. Shaffer and Duane;Mr. Shaffer; two times for Messrs. Chirico, and Shiffman)Larsson and Ms. Abel-Hodges) of the sum of histhe executive’s base salary plus an amount equal to the bonus that would be payable if target level performance were achieved under the annual bonus plan (if any) in respect of the fiscal year during which the termination occurs (or the prior fiscal year, if bonus levels have not yet been established for the year of termination). Messrs. Chirico, Shaffer, Duane and Shiffman are requiredAll of the agreements require the applicable NEO to execute a release of claims in our favor in order to receive these payments. All such amounts are payable in accordance with our payroll schedule in 36 (for Messrs. Shaffer and Duane)Mr. Shaffer) or 48 (for Messrs. Chirico and Shiffman)Larsson and Ms. Abel-Hodges) substantially equal installments. The agreements provide that for a period of time (18 months for Messrs.Mr. Shaffer, and Duane, two years for Mr.Messrs. Chirico and 12 months for Mr. Shiffman)Larsson, and Ms. Abel-Hodges) following the termination of the executive’s employment without cause or for good reason, medical, dental life, and disabilitylife insurance coverages are continued for the executive (and histhe executive’s family, to the extent participating prior to termination of employment), subject to cessation if the executive obtains replacement coverage from another employer (although there is no duty to seek employment
| | | | | PVH CORP. 2019 PROXY STATEMENT
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Executive Compensation Tables
Narrative Disclosure to Summary Compensation Table and Grants of Plan-Based Awards Table
or mitigate damages). The executive is required to pay the active employee rate, if any, for such coverage. Mr. Larsson’s agreement provides that we would pay to him, by no later than December 31, 2020, a bonus in an amount equal to 80% of our good faith estimate of the bonus amount that he will earn for our 2020 fiscal year. If the actual bonus amount earned by Mr. Larsson for fiscal year 2020 was less than the estimated amount, then he was obligated to repay promptly the difference. If the actual bonus earned was greater than the estimated amount, the difference was to be paid to him at the same time as other payouts are made to the other participants in the Plan. Mr. Larsson’s agreement provides that he will receive, in respect of the PSUs granted to him if his employment is terminated without “cause” or for “good reason,” then the number of shares of our common stock, if any, that would otherwise have been delivered to him in settlement of the PSUs based on actual performance for the applicable performance period, prorated to the portion of the applicable performance period that he actually worked, unless the date of termination occurs prior to the last day of the first fiscal year of the applicable performance period, in which case no shares will be delivered to Mr. Larsson and the applicable PSU award will be forfeited. In addition, in such circumstances, Mr. Larsson’s stock options will become fully vested as of the termination date and will remain exercisable until the earlier to occur of the original expiration date of each stock option and the date three months following his date of termination, and all of the RSUs granted to him on that date will become fully vested as of such date. However, if Mr. Larsson is named the successor Chief Executive Officer to Mr. Chirico, then, from and after the date on which he is named the successor Chief Executive Officer, the treatment of awards described in the preceding two sentences will not apply and Mr. Larsson’s then-outstanding equity awards will be treated in the same manner upon any such termination of his employment as the standard awards of the same type granted in the same year to the other executive officers of PVH. For more information about such treatment, see “Other Arrangements,” which begins on page 69. Termination following a change in control. Messrs. Chirico, Shaffer, Duane and ShiffmanEach of the NEOs also areis entitled, in lieu of the above and subject to executing a release of claims in our favor, to severance upon the termination of their employment without cause or for good reason within two years after a change in control of PVH (as defined in the agreements). In either such case, the executive will receive an aggregate amount equal to two times (three times for Mr. Chirico) the sum of histhe executive’s base salary plus an amount equal to the bonus that would be payable if target level performance were achieved under the annual bonus plan (if any) in respect of the fiscal year during which the termination occurs (or the prior fiscal year, if bonus levels have not yet been established for the year of termination). This amount will be paid in a lump sum if the change in control constitutes a “change in the ownership” or a “change in the effective control” of PVH or a “change in the ownership of a substantial portion of [PVH’s]PVH’s assets” (each within the meaning of Section 409A of the Code). Otherwise, this amount will be paid in 48 (72 for Mr. Chirico) substantially equal payments. These executives also would receive comparable medical, dental life and disabilitylife insurance coverage for themselves and their families for the two-year (three-year for Mr. Chirico) period immediately following such a termination, without a duty to mitigate or obtain replacement coverage from a subsequent employer. Under her agreement, Ms. Abel-Hodges will not be entitled to severance if PVH’s Calvin Klein business is sold, spun off or otherwise disposed of by PVH, regardless of the form or nature of such transaction, and either (i) she continues her employment in substantially the same or a greater capacity in regard to the Calvin Klein business as immediately prior to the transaction, regardless of the terms of such employment, or (ii) she is offered continued employment in connection with such transaction (whether or not she accepts the offer) and either (A) the employment agreement is to be assumed by the 66 | PVH CORP. 2021 PROXY STATEMENT Executive Compensation Tables Narrative Disclosure to Summary Compensation Table and Grants of Plan-Based Awards Table purchaser or other acquirer of the Calvin Klein business or is to be continued as a result of the purchase, spin off or other transaction involving a change in control of the entity then employing her or (B) she is offered employment in substantially the same or a greater capacity in regard to the Calvin Klein business and (1) her base salary would be no less than the base salary then in effect and (2) all other compensation and benefits offered to her are consistent with similarly situated executives with her new employer (including in comparable affiliates). Mr. Larsson’s agreement provides that in respect of the PSUs granted to him, the applicable performance goals will be deemed satisfied (a) based on the level of performance achieved as of the date of the change in control, if determinable, or (b) at the target level, if not determinable, provided that if less than 50% of the applicable performance period has elapsed as of the date of the change in control, then the performance goals applicable to the PSUs will be deemed satisfied at the target level, and such PSUs will become fully vested as of Mr. Larsson’s date of termination. In addition, Mr. Larsson’s agreement provides for the same treatment of his outstanding stock options and RSU awards in the event of a termination of employment without cause or for good reason as is described above when not occurring within two years of a change in control. The lapse of such acceleration of Mr. Larsson’s PSUs, stock options and RSUs upon being named Mr. Chirico’s successor also applies. For more information, see “Other Arrangements,” which begins on page 69. All of the employment agreements provide that if the receipt of the foregoing severance would subject anythe executive to the excise tax on excess parachute payments under Section 4999 of the Code, histhe executive’s severance would be reduced by the amount required to avoid the excise tax if such a reduction would give himthe executive a better after-tax result than if hethe executive received the full severance amount. Stefan Larsson — Amendment to Employment Agreement PVH and Mr. Larsson entered into an amendment to his employment agreement on January 27, 2021 in connection with his appointment as Chief Executive Officer. The amendment increases Mr. Larsson’s base salary to $1,300,000 per annum. The amendment also reflects the lapse of certain rights in respect of equity incentive awards set forth in his employment agreement, which are discussed above, that Mr. Larsson would have been entitled to if he had not been named Chief Executive Officer. The amendment provides that during Mr. Larsson’s employment, we will cause Mr. Larsson to be nominated for reelection to the Board at the expiration of each Board term. Francis K. Duane
The amendment also modifies the definition of “good reason” included in his employment agreement. Pursuant to the amendment, “good reason” generally is defined as: | ◾ | the assignment to him of any duties inconsistent in any material respect with his position or any other action that results in a material diminution in such position; |
| ◾ | a reduction of base salary, unless the Board imposes similar reductions in base salaries for other executive officers; |
| ◾ | the taking of any action that substantially diminishes (a) the aggregate value of his total compensation opportunity or (b) the aggregate value of the employee benefits provided to him; |
| ◾ | our failure to cause Mr. Larsson to be nominated for reelection to the Board at the expiration of each Board term during his employment; |
| ◾ | requiring that his services be rendered primarily at a location or locations more than 35 miles from PVH’s principal executive offices; |
| ◾ | solely after a change in control of PVH, Mr. Larsson is not serving as the Chief Executive Officer and a member of the Board of Directors of the top-most company in the chain of companies resulting from such change in control at any time during the one-year period following such change in control (other than as a result of Mr. Larsson’s termination of employment for any reason or cessation of service as a director due to death or disability); and |
| ◾ | our failure to require any successor to assume expressly and agree to perform Mr. Larsson’s employment agreement. |
Emanuel Chirico — Transition Agreement We entered intoin a newtransition agreement with Mr. Chirico on January 31, 2021 in connection with Mr. Chirico’s plans to step down from the position of Chief Executive Officer. The transition agreement superseded his employment agreement with Mr. Duane on March 29, 2018. PVH, which is described above. The employmenttransition agreement became effective as of March 1, 2018, and expires on February 28, 2021. It provides that heMr. Chirico will continue to serve as the Chief Executive Officer, Heritage Brands,Chairman of the Board for the remainder of his current term as a director, and, Viceif re-elected to the Board at PVH’s 2021 Annual Meeting of Stockholders, will be reappointed by the Board as Chairman PVH Corp., in which roles hefor such term. The Board will have no obligation to nominate Mr. Chirico for reelection to the Board beyond the term ending at the Company’s 2022 Annual Meeting of Stockholders and Mr. Chirico has no obligation to continue to serve beyond such term. The transition agreement provides that Mr. Chirico will be employed as an employee at will from the overall management of our North America wholesale customer relationships“transition period” commencing on February 1, 2021 and workending on corporate strategic initiatives. PVH hasDecember 31, 2021. During the right, on or after February 3, 2020, to modifytransition period, Mr. Duane’s titles,Chirico will have such duties and responsibilities so as may be reasonably assigned to enable him by the Board, including, but not limited to, focus onproviding advice and support to Mr. Larsson to ensure a smooth and effective PVH CORP. 2021 PROXY STATEMENT | 67 Executive Compensation Tables Narrative Disclosure to Summary Compensation Table and Grants of Plan-Based Awards Table transition and serving as a liaison between Mr. Larsson and the smooth transition of his duties asindependent directors of the end ofBoard. Mr. Chirico's base salary during the term of the agreement. Intransition period will be $1,200,000 per annum. Thereafter, so long as he remains a director, Mr. Chirico will be entitled to compensation in accordance with Mr. Duane’s employment agreement, his base salary was fixed at $1,150,000 per year effective June 1, 2018,the compensation package and will continue at that level untilpractices approved by the agreement expires. Mr. Duane’s base salary cannot be reduced.
Board for non-employee Board members.The employmenttransition agreement also provides that Mr. Chirico will not be eligible to receive an annual bonus award for Mr. Duane’s continued participationPVH’s 2021 fiscal year or otherwise participate in ourany of PVH’s bonus and stock plans and other incentive compensation programs for similarly situated executives. It further provides thatPVH’s senior executives, other than (i) with respect to awards granted prior to the only equity awards he will be eligible to receive are a single grantdate of the transition agreement, and (ii) an award of restricted stock units with a fair market(“FY2021 RSUs”) having an aggregate grant date value of $3,000,000 that will vest on December 31, 2021, subject to his continued employment from the grant date of the FY2021 RSUs to the end of the transition period. Additionally, if Mr. Chirico’s employment is terminated prior to December 31, 2021 due to his death or disability, or the termination of his employment by PVH without cause, the FY2021 RSUs will become fully vested on the date of grant of approximately $3.3 million,9 andtermination. The transition agreement also provides that if Mr. Chirico’s employment with PVH terminates for any reason other than his death or for cause (as defined in the performance share unit awards described below. The restricted stock unit grant was made on the same date during 2018 on which annual awards were made to other executive officers and is subject to ratable annual vesting over a three-year period. Mr. Duane also received in 2018 and 2019, and will receive in 2020, annual awards of performance share units with a target value of $400,000. The 2018 and 2019 performance share unit awards were, and the 2020 awardstransition agreement), such termination will be granted attreated as a “retirement” (as defined in the same time and with similar terms and conditions as performance share unitStock Incentive Plan) for purposes of his then-outstanding equity incentive awards granted to the other Named Executive Officers, with the actual number of shares and their value determined on the date of grant in accordance with our standard grant practices. No performance share unit award will be granted tounder such Stock Incentive Plan. In addition, Mr. Duane in 2021. Mr. Duane alsoChirico is eligible to participate in all employee benefitsbenefit and insurance plans sponsored or maintained by PVH for similarly situated executives of PVH and he is entitled to reimbursement of reasonable business expenses. Termination for “cause”expenses incurred or “good reason.” Mr. Duane’s employmentpaid by him in the performance of his duties.The transition agreement sets forth hisMr. Chirico’s rights to severance and other payments upon termination of employment. Generally, Mr. Duane is entitled to severance only if his employment is terminated by PVH without “cause” or by him for “good reason” prior to February 3, 2020. The definitions of each term are substantiallyDecember 31, 2021. In the same as under his prior agreement, as discussed above. event that we terminate Mr. Duane’s right to terminate hisChirico’s employment for good reason is only exercisable prior to February 3, 2020, and will not be exercisable if his compensation is reduced by the Board pursuant to our Clawback Policy described on page 48. If Mr. Duane’s employment is terminated by us without cause, or by him prior to February 3, 2020, for good reason, he isMr. Chirico will be entitled, subject to executing a release of claims in our favor, to (1) an aggregate amount equal to the sum of (A) base salary through the end of the term of the employment agreement and (B) an amount equal to the bonus that would be payable if target level performance were achieved under our annual bonus plan (if any) through the end of the term; (2) $400,000 in lieu of any annual performance share unit award that has not yet been made in accordance with the agreement; (3) full vesting of his 2018 restricted stock unit award; and (4) payment with respect to any annual performance share unit award granted in accordance with the employment agreement, calculated as if Mr. Duane retired. The severance amount payable under clause
9 The actual value of the award was determined in accordance with our standard grant practice.
| | 56 | | | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | |
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(1) would be paid in equal installments on the same schedule that base salary was paid immediately prior to the date of the termination of employment. Any amount payable under clause (2) would be paid within 30 days after Mr. Duane’s termination of employment. The employment agreement also provides that during the period that the severance amount payable under clause (1) is paid (or, if less, for the 18-month period following the date of the termination of Mr. Duane’s employment without cause or for good reason), medical, dental, life and disability insurance coverages will be continued for Mr. Duane (and his family, to the extent participating prior to termination of employment), subject to cessation if he obtains replacement coverage from another employer (although there is no duty to seek employment or mitigate damages). Mr. Duane is required to pay the active employee rate, if any, for such coverage.
In the event of Mr. Duane’s retirement or the termination of his employment upon the scheduled expiration of the employment agreement, he is entitled to (1)receive the portion of his base salary for periods prior to the effective date of termination that is accrued but unpaid (if any) , (2) any; all unreimbursed expenses (if any); continued payment of his base salary through December 31, 2021, payable in substantially equal installments on the same schedule that his base salary was paid immediately prior to the date of termination; and (3) the payment or provision of certainany other benefits. Additionally, ifbenefits as to which Mr. Chirico holds rights to on the date of the termination of employment is on or after December 31, 2020, any unvested portion of the 2018 restricted stock unit award will accelerate and become fully vested as of such date. If the date of the termination of employment is between December 31, 2019, and December 31, 2020, 66.66% of the award will vest and the unvested portion will be forfeited. If the date of the termination of employment is between December 31, 2018, and December 31, 2019, 33.33% of the award granted will vest and the unvested portion will be forfeited. Lastly, any performance share unit award will be subject to full vesting based on actual performance without any proration, and will be payable attermination.The transition agreement includes the same time as performance share unit awards are payable to other participants, unless the date of the termination of Mr. Duane’s employment is before the last day of the first fiscal year of the performance period with respect to a specific award, in which case the award will be forfeited. If the receipt of any of the foregoing payments and benefits would subject Mr. Duane to the excise tax on parachute payments under Section 4999 of the Code, such amounts would be reduced by the amount required to avoid the excise tax if such a reduction would give him a better after-tax result than if he received such amounts otherwise payable to him.
Mr. Duane’s employment agreement also includes certain restrictive covenants in PVH’s favor. The covenants includefavor of us as the employment agreement replaced, including prohibitions during and afterfollowing employment against theMr. Chirico’s use of confidential information, interfering with our business relationships, soliciting our associatesemployees for employment by himself or anyone else, interfering with business relationships, and, with certain exceptions, competing against us orby accepting employment or
being otherwise affiliated with a competitor. Daniel Grieder
direct competitor of our primary businesses or products as of the date of termination.Martijn Hagman Our employment agreement with Mr. GriederHagman outlines the compensation and benefits to be paid to him and sets forth the parties’ rights to terminate Mr. Grieder’sHagman’s employment and the restrictive covenants to which he has agreed. Mr. Grieder’sHagman’s employment agreement provides that he will serve as the Chief Executive Officer of Tommy Hilfiger Global and PVH Europe, or in such other position or positions as our Executive Chairman, Chief Executive Officer, President or Board of Directors may designate. It also provides that his compensationbase salary is subject to annual review and upward adjustment. The terms include payment or reimbursement of personal expenses relating to annual housing costs, personal taxadjustment, and accounting support, and costs related to travel between Mr. Grieder’s home country and our PVH Europe headquartersmay not be reduced without his consent unless the Board imposes similar reductions in Amsterdam. We believe the payment and reimbursement of these types of costs is common practice for key executives in Europe who work in one country and regularly travel to their residence in their home country, and also is consistent with provisions madebase salaries for other senior executives in our Amsterdam office who travel back to their home country residences. similarly situated executives. Mr. Hagman’s employment agreement also provides for a car allowance of €1,800 gross per month.Termination for “cause” or “good reason.” The employment agreement also sets forth Mr. Grieder’sHagman’s rights to severance upon termination of employment. Generally, Mr. GriederHagman is entitled to severance only if his employment is terminated without “cause” or if he terminates employment for “good reason.” “Cause” is generally defined as an urgent cause within the meaning of Dutch law and, to the extent not covered thereby, includes:following: | ◾ | gross negligence or willful misconduct by Mr. Hagman (a) in his performance of the material responsibilities of his office or position, which results in material economic harm to us or our affiliates or (b) that results in material reputational harm to us or our affiliates; |
| ◾ | Mr. Hagman’s willful and continued failure to perform substantially his duties (other than any such failure resulting from incapacity due to physical or mental illness); |
| ◾ | Mr. Hagman’s conviction of, or plea of guilty or nolo contendere to, a felony or comparable crime within the meaning of European Union, Dutch national, U.S. Federal, state or local law (other than a traffic violation) or a crime of moral turpitude; |
| ◾ | Mr. Hagman’s having willfully divulged, furnished or made accessible confidential information (as defined in the employment agreement); |
| ◾ | any act or failure to act by Mr. Hagman that, under the provisions of applicable law, disqualifies him from acting in any or all capacities in which he is then acting for us; |
| ◾ | Mr. Hagman’s having materially breached his employment agreement, our Code of Business Conduct and Ethics or any other material policy of PVH and its subsidiaries; or |
| ◾ | other urgent reason within the meaning of the Dutch Civil Code. |
■
gross negligence or willful misconduct by Mr. Grieder in his performance of the material responsibilities of his office or position, which results in material economic harm to 68 | PVH or in material reputational harm causing demonstrable injury to us;
■
Mr. Grieder’s willful and continued failure to perform substantially his duties (other than any such failure resulting from incapacity due to physical or mental illness), after delivery of a written demand for substantial performance and Mr. Grieder’s failure to cure such performance failure to our reasonable satisfaction within 20 days following his receipt of such written demand;
■
Mr. Grieder’s conviction of, or plea of guilty or nolo contendere to, a felony within the meaning of U.S. Federal, state or local law or the equivalent under the law of any foreign jurisdiction (other than a traffic violation);
■
Mr. Grieder’s having willfully divulged, furnished or made accessible confidential information (as defined in the employment agreement); or
■
any act or failure to act by Mr. Grieder that, under the provisions of applicable law, disqualifies him from acting in any or all capacities in which he is then acting for us.
CORP. 2021 PROXY STATEMENT | | | | | PVH CORP. 2019 PROXY STATEMENT
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Executive Compensation Tables Narrative Disclosure to Summary Compensation Table and Grants of Plan-Based Awards Table“Good reason” is generally defined as: ■
the assignment to Mr. Grieder of any duties inconsistent in any material respect with his position, or any other action by us that results in a material diminution in such position;
■
a reduction of base salary;
■
the taking of any action by us that substantially diminishes (A) the aggregate value of Mr. Grieder’s total compensation opportunity or (B) the aggregate value of the employee benefits provided to him relative to all other similarly situated senior executives; or
■
requiring that Mr. Grieder’s services be rendered primarily at a location or locations more than 75 miles from our principal office in Amsterdam.
| ◾ | the assignment to Mr. Hagman of any duties inconsistent in any material respect with his position, or any other action by us that results in a material diminution in such position; |
| ◾ | a change in Mr. Hagman’s reporting relationship such that he no longer reports directly to the Board, the Executive Chairman, Chief Executive Officer or President of PVH, or any person serving in the role of principal executive officer, PVH’s Chief Operating Officer or a comparable role; |
| ◾ | a reduction of base salary, unless the Board imposes similar reductions in base salaries for other similarly situated executives; |
| ◾ | the taking of any action by us that substantially diminishes (a) the aggregate value of Mr. Hagman’s total compensation opportunity or (b) the aggregate value of the employee benefits provided to him, in each case relative to all other similarly situated senior executives; |
| ◾ | requiring that Mr. Hagman’s services be rendered primarily at a location or locations more than 75 miles from our principal office in Amsterdam; or |
| ◾ | our failure to require any successor to assume expressly and agree to perform Mr. Hagman’s employment agreement. |
Either party may terminate Mr. Grieder’sHagman’s employment agreement, subject to a notice period of six months for Mr. GriederHagman and 12 months for us, in the event of a termination without cause by us or for good reason by Mr. Grieder or a termination by voluntary resignation (without good reason) by Mr. Grieder.us. The agreement automatically terminates at the end of the month in which Mr. GriederHagman turns the statutory pension age under Dutch law (currently 6568 and twothree months). If Mr. Grieder’sHagman’s employment is terminated without cause or for good reason (other than during the two-year period following a change in control (as defined in his agreement)), he is entitled to a severance payment equal to the greatersum of (x) his base salary for 12 months and (y) an amount equal to the bonus that would be payable if “target” level performance were achieved under PVH’s annual bonus plan (if any) in respect of the fiscal year during which the termination occurs (or the prior fiscal year, if bonus levels have not yet been established for the year of termination). This severance payment will be deemed to include the statutory severance amount and/or benefits provided for under Dutch law. The severance amount is payable in accordance with the Amsterdam office’s regular payroll schedule in 12 substantially equal payments, commencing on the first scheduled payroll date that occurs on or following the date that is 30 days after Mr. Grieder’sHagman’s termination of employment. It is payable only ifemployment, subject to Mr. Grieder’s employment is terminated amicably through the execution and delivery by the parties ofHagman delivering a settlement agreement acceptable under Dutch law.to us. If Mr. Grieder will receive the transition payment provided for under Dutch law if a settlement agreementHagman’s employment is not entered into. In the event of a termination of employmentterminated without cause or for good reason Mr. Grieder alsowithin two years after a “change in control”, he is eligible to receive a pro rata payout of any bonus award granted with respectentitled to the performance cycle duringabove severance payment, which notice of termination is given, basedwill be paid in a 12 monthly installments commencing on the actual performance level achieved forfirst scheduled payroll date that occurs on or following the entire cycle against the performance measures established for his award. Any pro rata payoutdate that is payable at the same time that bonuses for the performance cycle are paid30 days after Mr. Hagman’s’s termination of employment, subject to similarly situated executives. Mr. Hagman delivering a settlement agreement to us.If Mr. GriederHagman voluntarily resigns without good reason, he is generally entitled to receive base salary for six12 months after the conclusion of the notice period, paid in six12 substantially equal payments, in consideration of his covenant not to compete. Mr. Grieder’sHagman’s employment agreement also provides that in the event of his disability which means his inabilitypursuant to work for a 104-week period, Mr. Grieder is entitled to receive 70%article 7:669, paragraph 3(b) of his base salary for the 104-week period, andDutch Civil Code, we would be entitled to terminate his employment, in which case Mr. Hagman would be entitled to receive the statutory severance amount provided for under Dutch law.Under his agreement, Mr. Hagman will not be entitled to severance if the business or operating unit or division in which he is then employed (the “Business”) is sold, spun off or otherwise disposed of by PVH, regardless of the form or nature of such transaction, and when permittedeither (i) he continues his employment in substantially the same or a greater capacity in regard to the Business as immediately prior to the transaction, regardless of the terms of such employment, or (ii) he is offered continued employment in connection with such transaction (whether or not he accepts the offer) and either (A) the employment agreement is to be assumed by applicable lawthe purchaser or other acquirer of the Business or is to be continued as a result of the purchase, spin off or other transaction involving a change in control of the entity then employing him or (B) he is offered employment in substantially the same or a greater capacity in regard to the Business and our short-term and long-term disability policies(1) his base salary is no less than the base salary then in effect for the Amsterdam office. and (2) all other compensation and benefits offered to him are consistent with similarly situated executives with his new employer (including in comparable affiliates).The restrictive covenants in Mr. Grieder’sHagman’s agreement include prohibitions during and following employment against Mr. Grieder’sHagman’s use of confidential information, soliciting PVH associates for employment by himself or anyone else, interfering with our business relationships and, other than following a termination of employment without cause or for good reason, competing against us by accepting employment or being otherwise affiliated with a direct competitor of our primary businesses or products as of the date of termination. termination or any business that we are planning to engage in or products that we are planning to develop or launch.Other Arrangements There are a number of other arrangements that would result in payments or other benefits to some or all of our Named Executive Officers upon a termination of employment or in the event of a change in control, in addition to the severance arrangements described above. 2006
PVH CORP. 2021 PROXY STATEMENT | 69 Executive Compensation Tables Narrative Disclosure to Summary Compensation Table and Grants of Plan-Based Awards Table Stock Incentive Plan Our 2006 Stock Incentive Plan enables us to grant stock options, restricted stock units, performance share units and other stock-based awards. To date, we have granted to the NEOs (i) service-based incentive and non-qualified stock options, restricted stock and restricted stock units; and (ii) contingently issuable performance share units and restricted stock units. The following describes the effect upon stock option, restricted stock unit, and performance share unit awards of a termination of employment or change in control (the only types of awards currently outstanding). UnvestedThe following sets forth the effect of certain triggering events on stock options that are assumed by an acquirer upon a change in control will continueprior to vest on their original schedule and only become immediately exercisable in full after termination of employment (other than for “cause”exercise or without “good reason,” as and if such terms are defined in a participant’s employment agreement) within two years of the change in control (i.e., double trigger). All unvested stock options that are not assumed by an acquirer upon a change in control will become immediately exercisable in full upon a change in control. In the event of death, all unvested stock options generally become immediately exercisable. In the event of retirement, unvested stock options granted in the year of retirement are forfeited immediately if the recipient retires before December 31; all other unvested stock options generally become immediately exercisable upon retirement. Stock options, if unexercised, generally will expire three months after the qualification of the representative of a recipient’s estate
expiration.Death | | 58Unvested stock options become exercisable and, together with already exercisable options, expire three months after the qualification of the representative of the participant’s estate (or such earlier date on which they are scheduled to expire). | | Change In Control | | Unvested stock options that are assumed by the acquirer continue on the same terms. Unvested stock options that are not assumed by the acquirer become immediately exercisable. | | Disability | | Unvested stock options become immediately exercisable and, together with already exercisable options, expire three months after the termination of employment (or such earlier date on which they are scheduled to expire). | | Retirement1 | | Unvested stock options become immediately exercisable, except that awards granted in the year of retirement are forfeited if the participant retires prior to the last day of the calendar year of the grant. Stock options that vest, together with already exercisable options, expire three years after the retirement (or such earlier date on which they are scheduled to expire). | | Voluntar y Termination/ Termination Without Cause/Termination For “Good Reason”2 | PVH CORP. 2019 PROXY STATEMENT
| | | | | Unvested stock options are forfeited. Vested stock options expire three months after the termination of employment (or such earlier date on which they are scheduled to expire). |
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Narrative Disclosure to Summary Compensation Table and Grants of Plan-Based Awards Table
(in the event of a recipient’s death) or in three years (in the event of a recipient’s retirement). In all other circumstances, all unvested stock options will expire upon the termination of the recipient’s employment. If an option holder leaves our employ other than in the case of death, retirement or termination for cause, any then-exercisable stock options previously granted to but not yet exercised by such recipient generally will expire within 90 days of such termination of employment. If a recipient is terminated for cause, all of the recipient’s exercisable stock options will immediately expire.
| | | 1 | All stock options granted to Mr. Chirico starting in 2018 expire 10 years after grant, regardless of when he retires (other than retirement prior to the last day of the year of grant, in which case they are forfeited). |
| 2 | “Good reason” is as defined in a participant’s employment agreement (if any). “Cause” is as defined in the Stock Incentive Plan unless a participant’s employment agreement (if any) provides it controls. |
Restricted stock units Unvested restricted stock units that are assumed by an acquirer upon a change in control will continue to vest on their original schedule and only vest in full on an accelerated basis after termination of employment (other than for “cause” or without “good reason,” as and if such terms are defined in a participant’s employment agreement)agreement, if any) within two years of the change in control (i.e., double trigger). All outstanding restricted stock units that are not assumed by an acquirer upon a change in control will vest in full on an accelerated basis upon the change in control. All outstanding restricted stock units vest in full in the event the recipient dies.dies or the recipient’s employment terminates due to disability. In the event of retirement, restricted stock units generally vest in full, except that restricted stock units granted in the year of retirement are forfeited immediately if the recipient retires before December 31. When a recipient’s employment terminates for any other reason, unvested restricted stock units are forfeited immediately. 70 | PVH CORP. 2021 PROXY STATEMENT Executive Compensation Tables Narrative Disclosure to Summary Compensation Table and Grants of Plan-Based Awards Table Performance share units The following sets forth the effect uponon performance share units of certain triggering events occurring during a performance cycle. | Death | | | The participant’s estate will receive the target level payout, prorated to reflect the portion of the performance cycle worked by the participant. | | | Change in controlControl | | | Awards assumed by the acquirer upon a change in control will be deemed to have satisfied the performance level achieved (if calculable at the time of the change in control) or target performance (if performance is not calculable or less than half the performance cycle has elapsed). The awards then will be deemed to be time-based and will vest upon the earlier of the participant’s termination of employment (other than for “cause” or without “good reason,” as and if such terms are defined in the participant’s employment agreement, if any) or the scheduled end of the performance cycle (i.e., double trigger). The participant will receive the target leveltarget-level payout, prorated to reflect the portion of the performance cycle worked by the participant, for awards not assumed by the acquirer upon a change in control. | | | Disability | | | The participant will receive the payout, if any, that would have been payable for the performance cycle, prorated to reflect the portion of the performance cycle worked by the participant. | Retirement | | The participant will receive the full payout, if any, that would have been payable for the performance cycle if the participant retires on or after the first anniversary of the grant date. A participant who retires before the first anniversary of the grant date will not receive a payout. | Termination Without Cause/Termination For “Good Reason”1 | Termination without
cause/termination
for “good reason”1 | | | The participant will receive the payout, if any, that would have been payable for the performance cycle, prorated to reflect the portion of the performance cycle worked by the participant, if at leastthe participant’s employment terminated on or after the first fiscal year duringanniversary of the performance cycle has been completed.grant date. A participant whowhose employment is terminated duringbefore the first fiscal yearanniversary of grant will not receive a payout. |
| | 1 | Retirement | | | The participant will receive“Good reason” is as defined in a participant’s employment agreement (if any). “Cause” is defined in the full payout, if any, that would have been payable for the performance cycle if the participant retires on or after the last day of the fiscal year during which the award was granted. A participant who retires before the last day of such fiscal year will not receiveStock Incentive Plan unless a payout. | participant’s employment agreement (if any) provides it controls. |
1
“Good reason” is as defined under the participant’s employment agreement.
In all other cases, a participant must be employed by us on the last day of the performance cycle in order to remain eligible to receive an award. Payouts in the event of death or a change in control will be paid within 30 days of the triggering event unless to do so would prompt the imposition of additional taxes under Section 409A of the Code, in which case payment will be delayed for six months and the amounts owed will accrue interest at a rate based on the 10-year Treasury bill. | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | | | 59 | | |
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Performance Incentive Bonus Plan The following sets forth the effect uponon annual bonuses of certain triggering events occurring during a performance cycle. | Death | | | The participant’s estate will receive the target level bonus, prorated to reflect the portion of the performance cycle worked by the participant. | | | Change in controlControl | | | The participant will receive the target level bonus, prorated to reflect the portion of the performance cycle worked by the participant. | | Disability/Retirement/ Termination Without Cause/Termination For “Good Reason”1 | Disability/retirement/
termination without
cause/termination
for “good reason”1 | | | The participant will receive the payout, if any, that would have been payable for the performance cycle, prorated to reflect the portion of the performance cycle worked by the participant. |
| | | 1 | “Good reason” is as defined under the participant’s employment agreement (if any). “Cause” is as defined in the Plan unless a participant’s employment agreement (if any) provides it controls. |
1
“Good reason” is as defined under the participant’s employment agreement.
In all other cases, a participant must be employed by us on the last day of the performance cycle in order to remain eligible to receive an award. The bonus, in the event of death or a change in control, will be paid within 30 days of the triggering event unless to do so would prompt the imposition of additional taxes under Section 409A of the Code, in which case payment will be delayed for six months and the amounts owed will accrue interest at a rate based on the 10-year Treasury bill. PVH CORP. 2021 PROXY STATEMENT | 71 Executive Compensation Tables Narrative Disclosure to Summary Compensation Table and Grants of Plan-Based Awards Table Long-Term Incentive Plan The following sets forth the effect uponon Long-Term Incentive Plan awards (including GRIP awards) of certain triggering events occurring during a performance cycle. | Death | | | The participant’s estate will receive the target level payout, prorated to reflect the portion of the performance cycle worked by the participant. | | | Change in controlControl | | | The award will be deemed time-based and will be payable at the target level of performance upon the earlier of the participant’s termination of employment (other than for cause or without good reason (as defined in the participant’s employment agreement, if any)) or the scheduled end of the performance cycle (i.e., double trigger). | | | Disability | | | The participant will receive the payout, if any, that would have been payable for the performance cycle, prorated to reflect the portion of the performance cycle worked by the participant. | | Retirement/Termination Without Cause/ Termination For “Good Reason”1 | Retirement/
termination without
cause/termination
for “good reason”1 | | | If after the first fiscal year of the performance cycle, the participant will receive the payout, if any, that would have been payable for the performance cycle, prorated to reflect the portion of the performance cycle worked by the participant. A participant who is terminated during the first fiscal year will not receive a payout. |
| | | 1 | “Good reason” is as defined under the participant’s employment agreement (if any). “Cause” is as defined in the Plan unless a participant’s employment agreement (if any) provides it controls. |
1
“Good reason” is as defined under the participant’s employment agreement.
In all other cases, a participant must be employed by us on the last day of the performance cycle in order to remain eligible to receive an award. The payout, in the event of death or a change in control, will be paid within 30 days of the triggering event unless to do so would prompt the imposition of additional taxes under Section 409A of the Code, in which case payment will be delayed for six months and the amounts owed will accrue interest at a rate based on the 10-year Treasury bill. 72 | PVH CORP. 2021 PROXY STATEMENT | | 60 | | | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | |
Executive Compensation Tables Outstanding Equity at Fiscal Year-End
Outstanding Equity at Fiscal Year-End
| | | | | | | | | | Option Awards1 | | | Stock Awards | | | Name | | | Date of Grant | | | Number of
Securities
Underlying
Unexercised
Options
Exercisable
(#) | | | Number of
Securities
Underlying
Unexercised
Options
Unexercisable
(#) | | | Option
Exercise
Price
($) | | | Option
Expiration
Date | | | Number of
Shares or
Units of Stock
That Have
Not Vested2
(#) | | | Market Value
of Shares or
Units of Stock
That Have
Not Vested3
($) | | | Equity Incentive
Plans Awards: Number
of Unearned Shares,
Units or Other Rights
That Have Not Vested
(#) | | | Equity Incentive
Plans Awards: Market
or Payout Value of
Unearned Shares,
Units or Other Rights
That Have Not Vested3
($) | | | EMANUEL CHIRICO | | | | | 4/5/2012 | | | | | | 46,300 | | | | | | 0 | | | | | | 91.88 | | | | | | 4/5/2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 5/1/2013 | | | | | | 50,000 | | | | | | 0 | | | | | | 115.05 | | | | | | 5/1/2023 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4/3/2014 | | | | | | 46,200 | | | | | | 0 | | | | | | 124.53 | | | | | | 4/3/2024 | | | | | | | | | | | | | | | | | | | | | �� | | | | | | | | | | 4/2/2015 | | | | | | 40,200 | | | | | | 13,400 | | | | | | 107.47 | | | | | | 4/2/2025 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4/1/2016 | | | | | | 34,950 | | | | | | 34,950 | | | | | | 99.39 | | | | | | 4/1/2026 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4/7/2017 | | | | | | 17,025 | | | | | | 51,075 | | | | | | 101.90 | | | | | | 4/7/2027 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4/23/2018 | | | | | | 0 | | | | | | 39,000 | | | | | | 160.26 | | | | | | 4/23/2028 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4/2/2015 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 7,096 | | | | | | 771,761 | | | | | | | | | | | | | | | | | | | 4/1/2016 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 9,308 | | | | | | 1,012,338 | | | | | | | | | | | | | | | | | | | 4/7/2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 13,617 | | | | | | 1,480,985 | | | | | | | | | | | | | | | | | | | 4/23/2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 18,720 | | | | | | 2,035,987 | | | | | | | | | | | | | | | | | | | 4/26/20164 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 29,742 | | | | | | 3,234,740 | | | | | | | 4/25/20175 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 26,778 | | | | | | 2,912,375 | | | | | | | 4/23/20186 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 16,022 | | | | | | 1,742,553 | | | | MICHAEL A. SHAFFER | | | | | 4/2/2015 | | | | | | 0 | | | | | | 3,500 | | | | | | 107.47 | | | | | | 4/2/2025 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4/30/2015 | | | | | | 625 | | | | | | 625 | | | | | | 103.35 | | | | | | 4/30/2025 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4/1/2016 | | | | | | 0 | | | | | | 9,450 | | | | | | 99.39 | | | | | | 4/1/2026 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4/7/2017 | | | | | | 4,625 | | | | | | 13,875 | | | | | | 101.90 | | | | | | 4/7/2027 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4/6/2018 | | | | | | 0 | | | | | | 16,000 | | | | | | 156.73 | | | | | | 4/6/2028 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4/2/2015 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2,094 | | | | | | 227,743 | | | | | | | | | | | | | | | | | | | 4/30/2015 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 484 | | | | | | 52,640 | | | | | | | | | | | | | | | | | | | 4/1/2016 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 3,774 | | | | | | 410,460 | | | | | | | | | | | | | | | | | | | 4/7/2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 5,523 | | | | | | 600,681 | | | | | | | | | | | | | | | | | | | 4/6/2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 5,108 | | | | | | 555,546 | | | | | | | | | | | | | | | | | | | 4/26/20164 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2,588 | | | | | | 281,471 | | | | | | | 4/25/20175 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2,811 | | | | | | 305,724 | | | | | | | 4/23/20186 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 1,781 | | | | | | 193,702 | | | | FRANCIS K. DUANE | | | | | 4/2/2015 | | | | | | 0 | | | | | | 3,800 | | | | | | 107.47 | | | | | | 4/2/2025 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4/1/2016 | | | | | | 0 | | | | | | 8,200 | | | | | | 99.39 | | | | | | 4/1/2026 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4/7/2017 | | | | | | 0 | | | | | | 10,125 | | | | | | 101.90 | | | | | | 4/7/2027 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4/2/2015 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2,094 | | | | | | 227,743 | | | | | | | | | | | | | | | | | | | 4/1/2016 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 3,270 | | | | | | 355,645 | | | | | | | | | | | | | | | | | | | 4/7/2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4,050 | | | | | | 440,478 | | | | | | | | | | | | | | | | | | | 4/6/2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 21,057 | | | | | | 2,290,159 | | | | | | | | | | | | | | | | | | | 4/26/20164 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2,070 | | | | | | 225,133 | | | | | | | 4/25/20175 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 1,874 | | | | | | 203,816 | | | | | | | 4/23/20186 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 1,188 | | | | | | 129,207 | | | | DANIEL GRIEDER | | | | | 4/3/2014 | | | | | | 6,146 | | | | | | 0 | | | | | | 124.53 | | | | | | 4/3/2024 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 7/1/2014 | | | | | | 550 | | | | | | 0 | | | | | | 117.71 | | | | | | 7/1/2024 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4/2/2015 | | | | | | 0 | | | | | | 2,925 | | | | | | 107.47 | | | | | | 4/2/2025 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4/1/2016 | | | | | | 0 | | | | | | 8,850 | | | | | | 99.39 | | | | | | 4/1/2026 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4/7/2017 | | | | | | 0 | | | | | | 12,900 | | | | | | 101.90 | | | | | | 4/7/2027 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4/6/2018 | | | | | | 0 | | | | | | 14,000 | | | | | | 156.73 | | | | | | 4/6/2028 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4/2/2015 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2,328 | | | | | | 253,193 | | | | | | | | | | | | | | | | | | | 4/1/2016 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 3,522 | | | | | | 383,053 | | | | | | | | | | | | | | | | | | | 4/7/2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 5,154 | | | | | | 560,549 | | | | | | | | | | | | | | | | | | | 4/6/2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4,468 | | | | | | 485,940 | | | | | | | | | | | | | | | | | | | 4/26/20164 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 1,035 | | | | | | 112,567 | | | | | | | 4/25/20175 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 937 | | | | | | 101,908 | | | | | | | 4/23/20186 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 594 | | | | | | 64,603 | | |
| | | | | Option Awards1 | | Stock Awards | | | | | | | | | | | | | | | | | | | | | | Name | | Date of
Grant | | Number of
Securities
Underlying
Unexercised
Options
Exercisable
(#) | | Number of
Securities
Underlying
Unexercised
Options
Unexercisable
(#) | | Option
Exercise
Price
($) | | Option
Expiration
Date | | Number of
Shares or Units
of Stock That
Have Not Vested2
(#) | | Market Value of
Shares or Units
of Stock That
Have Not Vested3
($) | | Equity Incentive Plans
Awards: Number of
Unearned Shares,
Units or Other Rights
That Have Not Vested
(#) | | Equity Incentive
Plans Awards:
Market or Payout
Value of Unearned
Shares, Units or
Other Rights That
Have Not Vested3
($) | | EMANUEL | | 4/5/2012 | | 46,300 | | 0 | | 91.88 | | 4/5/2022 | | | | | | | | | | CHIRICO | | 5/1/2013 | | 50,000 | | 0 | | 115.05 | | 5/1/2023 | | | | | | | | | | | | 4/3/2014 | | 46,200 | | 0 | | 124.53 | | 4/3/2024 | | | | | | | | | | | | 4/2/2015 | | 53,600 | | 0 | | 107.47 | | 4/2/2025 | | | | | | | | | | | | 4/1/2016 | | 69,900 | | 0 | | 99.39 | | 4/1/2026 | | | | | | | | | | | | 4/7/2017 | | 51,075 | | 17,025 | | 101.90 | | 4/7/2027 | | | | | | | | | | | | 4/23/2018 | | 19,500 | | 19,500 | | 160.26 | | 4/23/2028 | | | | | | | | | | | | 4/5/2019 | | 12,300 | | 36,900 | | 127.26 | | 4/5/2029 | | | | | | | | | | | | 4/14/2020 | | 0 | | 49,200 | | 47.96 | | 4/14/2030 | | | | | | | | | | | | 9/10/2020 | | 0 | | 35,100 | | 67.05 | | 9/10/2030 | | | | | | | | | | | | 4/7/2017 | | | | | | | | | | 4,339 | | 369,943 | | | | | | | | 4/23/2018 | | | | | | | | | | 8,948 | | 762,906 | | | | | | | | 4/5/2019 | | | | | | | | | | 16,904 | | 1,441,235 | | | | | | | | 4/14/2020 | | | | | | | | | | 22,539 | | 1,921,675 | | | | | | | | 9/10/2020 | | | | | | | | | | 26,653 | | 2,272,435 | | | | | | | | 4/23/20184 | | | | | | | | | | | | | | 16,022 | | 1,366,036 | | | | 4/29/20195 | | | | | | | | | | | | | | 19,627 | | 1,673,398 | | | | 4/29/20207 | | | | | | | | | | | | | | 78,506 | | 6,693,422 | | | | 9/10/20209 | | | | | | | | | | | | | | 82,972 | | 7,074,193 | | | | | | | | | | | | | | | | | | | | | | MICHAEL | | 4/2/2015 | | 3,500 | | 0 | | 107.47 | | 4/2/2025 | | | | | | | | | | A. SHAFFER | | 4/30/2015 | | 1,250 | | 0 | | 103.35 | | 4/30/2025 | | | | | | | | | | | | 4/7/2017 | | 0 | | 4,625 | | 101.90 | | 4/7/2027 | | | | | | | | | | | | 4/6/2018 | | 8,000 | | 8,000 | | 156.73 | | 4/6/2028 | | | | | | | | | | | | 4/5/2019 | | 4,925 | | 14,775 | | 127.26 | | 4/5/2029 | | | | | | | | | | | | 4/14/2020 | | 0 | | 19,700 | | 47.96 | | 4/14/2030 | | | | | | | | | | | | 9/10/2020 | | 0 | | 14,100 | | 67.05 | | 9/10/2030 | | | | | | | | | | | | 4/7/2017 | | | | | | | | | | 1,841 | | 156,964 | | | | | | | | 4/6/2018 | | | | | | | | | | 2,554 | | 217,754 | | | | | | | | 4/5/2019 | | | | | | | | | | 4,716 | | 402,086 | | | | | | | | 6/3/2019 | | | | | | | | | | 51,300 | | 4,373,838 | | | | | | | | 4/14/2020 | | | | | | | | | | 6,288 | | 536,115 | | | | | | | | 9/10/2020 | | | | | | | | | | 7,436 | | 633,993 | | | | | | | | 4/23/20184 | | | | | | | | | | | | | | 1,781 | | 151,848 | | | | 4/29/20195 | | | | | | | | | | | | | | 2,210 | | 188,425 | | | | 4/29/20207 | | | | | | | | | | | | | | 8,838 | | 753,528 | | | | 9/10/20209 | | | | | | | | | | | | | | 7,644 | | 651,727 | | | | | | | | | | | | | | | | | | | | | | STEFAN | | 6/3/2019 | | 13,375 | | 40,125 | | 87.72 | | 6/3/2029 | | | | | | | | | | LARSSON | | 4/14/2020 | | 0 | | 57,600 | | 47.96 | | 4/14/2030 | | | | | | | | | | | | 9/10/2020 | | 0 | | 17,700 | | 67.05 | | 9/10/2030 | | | | | | | | | | | | 6/3/2019 | | | | | | | | | | 12,825 | | 1,093,460 | | | | | | | | 4/14/2020 | | | | | | | | | | 18,412 | | 1,569,807 | | | | | | | | 9/10/2020 | | | | | | | | | | 11,688 | | 996,519 | | | | | | | | 6/3/20196 | | | | | | | | | | | | | | 16,342 | | 1,393,319 | | | | 4/29/20207 | | | | | | | | | | | | | | 35,140 | | 2,996,036 | | | | 9/10/20209 | | | | | | | | | | | | | | 13,072 | | 1,114,519 | | | | | | | | | | | | | | | | | | | | |
PVH CORP. 2021 PROXY STATEMENT | 73 | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | | | 61 | | |
EXECUTIVE COMPENSATION TABLES Executive Compensation TablesOUTSTANDING EQUITY AT FISCAL YEAR-END Outstanding Equity at Fiscal Year-End | | | | Option Awards1 | | | Stock Awards | | | Name | | | Date of Grant | | | Number of
Securities
Underlying
Unexercised
Options
Exercisable
(#) | | | Number of
Securities
Underlying
Unexercised
Options
Unexercisable
(#) | | | Option
Exercise
Price
($) | | | Option
Expiration
Date | | | Number of
Shares or
Units of Stock
That Have Not
Vested2
(#) | | | Market Value
of Shares or
Units of Stock
That Have Not
Vested3
($) | | | Equity Incentive Plans
Awards: Number of
Unearned Shares,
Units or Other Rights
That Have Not Vested
(#) | | | Equity Incentive Plans
Awards: Market or
Payout Value of
Unearned Shares, Units
or Other Rights That
Have Not Vested3
($) | | | STEVEN B. SHIFFMAN | | | | | 4/6/2010 | | | | | | 3,500 | | | | | | 0 | | | | | | 60.08 | | | | | | 4/6/2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4/7/2011 | | | | | | 3,200 | | | | | | 0 | | | | | | 64.97 | | | | | | 4/7/2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4/5/2012 | | | | | | 3,100 | | | | | | 0 | | | | | | 91.88 | | | | | | 4/5/2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 5/1/2013 | | | | | | 3,300 | | | | | | 0 | | | | | | 115.05 | | | | | | 5/1/2023 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4/3/2014 | | | | | | 3,100 | | | | | | 0 | | | | | | 124.53 | | | | | | 4/3/2024 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 7/1/2014 | | | | | | 3,200 | | | | | | 0 | | | | | | 117.71 | | | | | | 7/1/2024 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4/2/2015 | | | | | | 5,250 | | | | | | 1,750 | | | | | | 107.47 | | | | | | 4/2/2025 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4/1/2016 | | | | | | 7,550 | | | | | | 7,550 | | | | | | 99.39 | | | | | | 4/1/2026 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4/7/2017 | | | | | | 3,700 | | | | | | 11,100 | | | | | | 101.90 | | | | | | 4/7/2027 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4/6/2018 | | | | | | 0 | | | | | | 12,000 | | | | | | 156.73 | | | | | | 4/6/2028 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4/2/2015 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 1,396 | | | | | | 151,829 | | | | | | | | | | | | | | | | | | | 4/1/2016 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4,026 | | | | | | 437,868 | | | | | | | | | | | | | | | | | | | 4/7/2017 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4,419 | | | | | | 480,610 | | | | | | | | | | | | | | | | | | | 4/6/2018 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 3,832 | | | | | | 416,768 | | | | | | | | | | | | | | | | | | | 4/26/20164 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2,070 | | | | | | 225,133 | | | | | | | 4/25/20175 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 1,874 | | | | | | 203,816 | | | | | | | 4/23/20186 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 1,188 | | | | | | 129,207 | | |
1
These awards consist of stock options that vest in four equal installments on each of the first four anniversaries of the grant date.
2
These awards consist of RSUs. Awards granted in 2015 vest in increments of 25.0%, 25.0% and 50.0% on the second, third and fourth anniversaries of the grant date. Awards granted in or after 2016 vest in four equal installments on each of the first four anniversaries of the grant date, except for the award granted to Mr. Duane in 2018, which vests in three equal installments on each of the first three anniversaries of the grant date. Awards granted prior to 2018, other than those granted to Mr. Grieder, also are subject to the requirement that we achieve a specific level of adjusted net income for any one of the fiscal years during the performance cycle before they vest. The required level was achieved for all applicable awards as of February 3, 2019.
3
The market value of unvested RSUs and unvested PSUs was calculated by multiplying the number of units by $108.76, the closing stock price of our common stock on February 1, 2019, the last business day of 2018.
4
These awards consist of PSU awards. The after-tax shares received by Mr. Chirico are subject to a holding period of one year after the vesting date. The above table shows the number of shares at the threshold level, as the estimated payout as of the end of 2018 was below threshold-level performance. The awards vested in April 2019 upon the certification of the satisfaction of the performance criteria. The number of shares earned was 52,001 for Mr. Chirico, 4,524 for Mr. Shaffer, 3,619 for Mr. Duane, 1,810 for Mr. Grieder and 3,619 for Mr. Shiffman.
5
These awards consist of PSU awards that will vest in April 2020 if the performance criteria are satisfied. The after-tax shares received by Mr. Chirico in the event his award pays out will be subject to a holding period of one year after the vesting date. The above table shows the number of shares at threshold level, as the estimated payout as of the end of 2018 is below threshold-level performance. The number of shares also assumes service for the entire three-year performance cycle; the awards generally pay out on a pro rata basis if the NEO does not work for the entire cycle.
6
| | | | | Option Awards1 | | Stock Awards | | Name | | Date of
Grant | | Number of
Securities
Underlying
Unexercised
Options
Exercisable
(#) | | Number of
Securities
Underlying
Unexercised
Options
Unexercisable
(#) | | Option
Exercise
Price
($) | | Option
Expiration
Date | | Number of
Shares or Units
of Stock That
Have Not Vested2
(#) | | Market Value of
Shares or Units
of Stock That
Have Not Vested3
($) | | Equity Incentive Plans
Awards: Number of
Unearned Shares,
Units or Other Rights
That Have Not Vested
(#) | | Equity Incentive
Plans Awards:
Market or Payout
Value of Unearned
Shares, Units or
Other Rights That
Have Not Vested3
($) | | CHERYL | | 4/1/2016 | | 950 | | 0 | | 99.39 | | 4/1/2026 | | | | | | | | | | ABEL-HODGES | | 7/1/2019 | | 3,800 | | 11,400 | | 95.26 | | 7/1/2029 | | | | | | | | | | | | 4/14/2020 | | 0 | | 14,600 | | 47.96 | | 4/14/2030 | | | | | | | | | | | | 9/10/2020 | | 0 | | 10,400 | | 67.05 | | 9/10/2030 | | | | | | | | | | | | 4/7/2017 | | | | | | | | | | 737 | | 62,837 | | | | | | | | 4/6/2018 | | | | | | | | | | 1,278 | | 108,962 | | | | | | | | 4/5/2019 | | | | | | | | | | 2,358 | | 201,043 | | | | | | | | 7/1/2019 | | | | | | | | | | 1,052 | | 89,694 | | | | | | | | 4/14/2020 | | | | | | | | | | 4,660 | | 397,312 | | | | | | | | 9/10/2020 | | | | | | | | | | 5,508 | | 469,612 | | | | | | | | 7/1/20196 | | | | | | | | | | | | | | 1,756 | | 149,717 | | | | 4/29/20207 | | | | | | | | | | | | | | 6,110 | | 520,939 | | | | 9/10/20209 | | | | | | | | | | | | | | 5,284 | | 450,514 | | | | | | | | | | | | | | | | | | | | | | MARTIJN | | 4/28/2015 | | 625 | | 0 | | 103.24 | | 4/28/2025 | | | | | | | | | | HAGMAN | | 4/1/2016 | | 1,450 | | 0 | | 99.39 | | 4/1/2026 | | | | | | | | | | | | 6/15/2020 | | 0 | | 8,600 | | 50.17 | | 6/15/2030 | | | | | | | | | | | | 9/10/2020 | | 0 | | 5,900 | | 67.05 | | 9/10/2030 | | | | | | | | | | | | 4/7/2017 | | | | | | | | | | 553 | | 47,149 | | | | | | | | 4/6/2018 | | | | | | | | | | 958 | | 81,679 | | | | | | | | 4/5/2019 | | | | | | | | | | 1,770 | | 150,910 | | | | | | | | 7/1/2019 | | | | | | | | | | 10,500 | | 895,230 | | | | | | | | 4/14/2020 | | | | | | | | | | 2,360 | | 201,214 | | | | | | | | 6/15/2020 | | | | | | | | | | 396 | | 33,763 | | | | | | | | 8/3/2020 | | | | | | | | | | 24,376 | | 2,078,298 | | | | | | | | 9/10/2020 | | | | | | | | | �� | 3,236 | | 275,901 | | | | | | | | 6/15/20208 | | | | | | | | | | | | | | 2,946 | | 251,176 | | | | 9/10/20209 | | | | | | | | | | | | | | 2,708 | | 230,884 | | | | | | | | | | | | | | | | | | | | |
| 1 | These awards consist of stock options that vest in four equal installments on each of the first four anniversaries of the grant date. | | | | 2 | These awards consist of RSUs. Awards vest in four equal installments on each of the first four anniversaries of the grant date, except for the award granted to (1) Mr. Shaffer in June 2019, which vests 10% on each of the first and second anniversary of the grant date, 15% on each of the third and fourth anniversary of the grant date and 50% on the fifth anniversary of the grant date; and (2) Mr. Hagman in August 2020, which vests 25% on each of the first and second anniversary of the grant date and 50% on the third anniversary of the grant date. Awards granted to Messrs. Chirico and Shaffer in 2017 are also subject to the requirement that we achieve a specific level of adjusted net incomefor any one of the fiscal years during the performance cycle before they vest. The required level was achieved for all applicable awards as of January 31, 2021. | | | | 3 | The market value of unvested RSUs and unvested PSUs was calculated by multiplying the number of units by $85.26, the closing stock price of our common stock on January 29, 2021, the last business day of 2020. | | | | 4 | These awards consist of PSU awards that would have vested April 2021 if the performance criteria were satisfied. The above table shows the number of shares at threshold level, as the estimated payout as of the end of 2020 was below threshold-level performance. As certified on May 3, 2021, the performance criteria were not satisfied and therefore no shares were earned. | | | | 5 | These awards consist of PSU awards that will vest in April 2022 if the performance criteria are satisfied. The after-tax shares received by Mr. Chirico in the event his award pays out will be subject to a holding period of one year after the vesting date. The above table shows the number of shares at threshold level, as the estimated payout as of the end of 2020 was below threshold-level performance. The number of shares also assumes service for the entire three-year performance cycle; the awards generally pay out on a pro rata basis if the NEO does not work for the entire cycle. See discussion on page 71. | | | | 6 | These awards consist of PSU awards that will vest in June 2022 if the performance criteria are satisfied. The above table shows the number of shares at target level for Mr. Larsson, as the estimated payout as of the end of 2020 was between threshold- and target-level performance. The above table shows the number of shares at threshold level for Ms. Abel-Hodges, as the estimated payout as of the end of 2020 was below threshold-level performance. The number of shares also assumes service for the entire three-year performance cycle; the awards generally pay out on a pro rata basis if the NEO does not work for the entire cycle. See discussion on page 71. | | | | 7 | These awards consist of PSU awards that will vest in April 2023 if the performance criteria are satisfied. The after-tax shares received by Mr. Chirico in the event his award pays out will be subject to a holding period of one year after the vesting date. The above table shows the number of shares at maximum level, as the estimated payout as of the end of 2020 was at maximum-level performance. The number of shares also assumes service for the entire three-year performance cycle; the awards generally pay out on a pro rata basis if the NEO does not work for the entire cycle. See discussion on page 71. | | | | 8 | These awards consist of PSU awards that will vest in June 2023 if the performance criteria are satisfied. The above table shows the number of shares at maximum level, as the estimated payout as of the end of 2020 was at maximum-level performance. The number of shares also assumes service for the entire three-year performance cycle; the awards generally pay out on a pro rata basis if the NEO does not work for the entire cycle. See discussion on page 71. | | | | 9 | These awards consist of PSU awards that will vest in September 2023 if the performance criteria are satisfied. The after-tax shares received by Mr. Chirico in the event his award pays out will be subject to a holding period of one year after the vesting date. The above table shows the number of shares at maximum level, as the estimated payout as of the end of 2020 was at maximum-level performance. The number of shares also assumes service for the entire three-year performance cycle; the awards generally pay out on a pro rata basis if the NEO does not work for the entire cycle. See discussion on page 71. |
74 | PVH CORP. 2021 if the performance criteria are satisfied. The after-tax shares received by Mr. Chirico in the event his award pays out will be subject to a holding period of one year after the vesting date. The above table shows the number of shares at threshold level, as the estimated payout as of the end of 2018 is below threshold-level performance. The number of shares also assumes service for the entire three-year performance cycle; the awards generally pay out on a pro rata basis if the NEO does not work for the entire cycle.
PROXY STATEMENT | | 62 | | | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | |
EXECUTIVE COMPENSATION TABLES OPTION EXERCISES AND STOCK VESTED TABLE OF CONTENTSOPTION EXERCISES AND STOCK VESTED
| | Option Awards | | Stock Awards | | Name | Number of Shares
Acquired on Exercise (#) | Value Realized
on Exercise1 ($) | | Number of Shares
Acquired on Vesting (#) | Value Realized
on Vesting2 ($) | | EMANUEL CHIRICO | 0 | 0 | | 21,163 | 912,825 | | MICHAEL A. SHAFFER | 23,325 | 164,070 | | 12,277 | 560,586 | | STEFAN LARSSON | 0 | 0 | | 4,275 | 235,168 | | CHERYL ABEL-HODGES | 0 | 0 | | 2,540 | 96,507 | | MARTIJN HAGMAN | 0 | 0 | | 1,905 | 72,381 |
| 1 | The value realized on exercise equals the stock price of our common stock on the date of exercise less the exercise price, multiplied by the number of shares acquired upon exercise. | | | | 2 | The value realized on vesting equals the stock price of our common stock on the date of vesting multiplied by the number of shares vested. |
Executive Compensation Tables Option Exercises and Stock Vested
Option Exercises and Stock Vested
| | | | Option Awards | | | Stock Awards | | | Name | | | Number of Shares
Acquired on Exercise
(#) | | | Value Realized on
Exercise1
($) | | | Number of Shares
Acquired on Vesting
(#) | | | Value Realized on
Vesting2
($) | | | Emanuel Chirico | | | | | 0 | | | | | | 0 | | | | | | 84,479 | | | | | | 13,378,404 | | | | Michael A. Shaffer | | | | | 46,400 | | | | | | 2,089,016 | | | | | | 10,776 | | | | | | 1,682,327 | | | | Francis K. Duane | | | | | 38,575 | | | | | | 1,631,625 | | | | | | 9,001 | | | | | | 1,402,433 | | | | Daniel Grieder | | | | | 34,229 | | | | | | 1,727,225 | | | | | | 11,584 | | | | | | 1,793,953 | | | | Steven B. Shiffman | | | | | 0 | | | | | | 0 | | | | | | 8,587 | | | | | | 1,334,989 | | |
1
The value realized on exercise equals the stock price of our common stock on the date of exercise less the exercise price, multiplied by the number of shares acquired upon exercise.
2
The value realized on vesting equals the stock price of our common stock on the date of vesting multiplied by the number of shares vested.
Pension Benefits
| Name | | | Plan name | | | Number of Years
Credited Service
(#) | | | Present Value of
Accumulated Benefit1
($) | | | Payments During Last
Fiscal Year
($) | | | Emanuel Chirico | | | Pension Plan2 | | | | | 24.1667 | | | | | | 804,050 | | | | | | 0 | | | | | Supplemental Pension Plan2 | | | | | 24.1667 | | | | | | 10,230,761 | | | | | | 0 | | | | | Capital Accumulation Program3 | | | | | 10.0000 | | | | | | 1,791,183 | | | | | | 0 | | | | Michael A. Shaffer | | | Pension Plan2 | | | | | 27.5833 | | | | | | 655,087 | | | | | | 0 | | | | | Supplemental Pension Plan2 | | | | | 27.5833 | | | | | | 2,547,323 | | | | | | 0 | | | | Francis K. Duane | | | Pension Plan2 | | | | | 19.6667 | | | | | | 700,188 | | | | | | 0 | | | | | Supplemental Pension Plan2 | | | | | 19.6667 | | | | | | 5,305,002 | | | | | | 0 | | | | | Capital Accumulation Program3 | | | | | 10.0000 | | | | | | 1,689,645 | | | | | | 0 | | | | Daniel Grieder | | | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | Steven B. Shiffman | | | Pension Plan2 | | | | | 25.1667 | | | | | | 793,449 | | | | | | 0 | | | | | Supplemental Pension Plan2 | | | | | 25.1667 | | | | | | 2,581,966 | | | | | | 0 | | |
1
Please see Note 12, “Retirement and Benefit Plans,” in the Notes to Consolidated Financial Statements included in Item 8 of our Annual Report on Form 10-K for the year ended February 3, 2019, for the assumptions used in calculating the present value of the accumulated benefit. The present value of the accumulated benefit of Messrs. Chirico and Duane for the capital accumulation program was calculated using settlement rates based on the 10-year Treasury bill rates applicable under their agreements.
2
Pension Plan and Supplemental Pension Plan service credit and actuarial values are calculated as of February 3, 2019, which is the pension plan measurement date that we used for financial statement reporting purposes. Retirement age is the applicable plan’s “normal” retirement age or the earliest time when a participant may retire without an age-based reduction. The present values as of February 3, 2019, are calculated based on the following assumptions: (i) for annuity payments in the qualified plan, the RP-2014 mortality table, and the MP-2018 mortality improvement projection scale, as published by the Society of Actuaries; (ii) a 4.35% discount rate; (iii) form of payment in the qualified plan for males (60% assumed to elect a life annuity, 20% assumed to elect a 50% joint and survivor, and 20% assumed to elect a 100% joint and survivor); and (iv) Supplemental Pension Plan lump sum values based on the assumptions prescribed under the Pension Protection Act of 2006 (including, for payments projected to be made after 2019, the newly mandated unisex mortality table specified by IRS Notice 2017-60, based on the RP-2014 table, with projected mortality improvements, and December 2018 segment rates of 3.38% for payments expected to be made for the first five years, 4.32% for payments between five and 20 years, and 4.69% for payments made after 20 years).
3
Capital accumulation program credited service relates to the number of full years of vesting credit accrued by each applicable NEO based on the effective date of his underlying agreement. The benefit is fully vested after 10 years. Retirement age is the program’s “normal” retirement age or the earliest time when a participant may retire without an age-based reduction.
PENSION BENEFITS| Name | Plan name | Number of Years
Credited Service
(#) | Present Value of
Accumulated Benefit1
($) | Payments During
Last Fiscal Year
($) | | EMANUEL CHIRICO | Pension Plan2 | 26.0833 | 1,146,667 | 0 | | | Supplemental Pension Plan2 | 26.0833 | 15,554,570 | 0 | | | Capital Accumulation Program3 | 10.0000 | 2,014,073 | 0 | | | | | | | | MICHAEL A. SHAFFER | Pension Plan2 | 29.5000 | 1,002,846 | 0 | | | Supplemental Pension Plan2 | 29.5000 | 4,269,375 | 0 | | | | | | | | STEFAN LARSSON | Pension Plan2 | 0.5833 | 19,734 | 0 | | | Supplemental Pension Plan2 | 0.5833 | 191,255 | 0 | | | | | | | | CHERYL ABEL-HODGES | Pension Plan2 | 13.0833 | 558,414 | 0 | | | Supplemental Pension Plan2 | 13.0833 | 1,820,741 | 0 | | | | | | | | MARTIJN HAGMAN | Pension Plan2 | N/A | N/A | N/A | | | Supplemental Pension Plan2 | N/A | N/A | N/A | | | | | | |
| 1 | Please see Note 12, “Retirement and Benefit Plans,” in the Notes to Consolidated Financial Statements included in Item 8 of our Annual Report on Form 10-K for the year ended January 31, 2021 for the assumptions used in calculating the present value of the accumulated benefit. The present value of the accumulated benefit for Mr. Chirico for the capital accumulation program was calculated using settlement rates based on the 10-year Treasury bill rates currently applicable under his agreement. | | | | 2 | Pension and Supplemental Pension Plan credited service and actuarial values are calculated as of January 31, 2021, which is the pension plan measurement date that we use for financial statement reporting purposes. Retirement age is the plan’s “normal” retirement age or the earliest time when a participant may retire without an age-based reduction. The present values as of January 31, 2021 are calculated based on the following assumptions: (i) for annuity payments in the qualified plan, the PRI-2012 mortality table, and the MP-2020 mortality improvement projection scale, as published by the Society of Actuaries; (ii) a 3.04% discount rate; (iii) form of payment in the qualified plan for males as follows: 50% assumed to elect a lump sum; 30% assumed to elect a life annuity; 10% assumed to elect a 50% joint and survivor, and 10% assumed to elect a 100% joint and survivor; for females, 50% assumed to elect a lump sum, 42.5% assumed to elect a life annuity, 5% assumed to elect a 50% joint and survivor; and 2.5% assumed to elect 100% joint and survivor; and (iv) SPP lump sum values based on the assumptions prescribed under the Pension Protection Act of 2006 (these include the newly mandated unisex mortality table specified by IRS Notice 2017-60, based on the RP-2014 table, with projected mortality improvements, and December 2020 segment rates of 0.51% for payments expected to be made for the first five years, 2.26% for payments between five and 20 years, and 3.01% for payments made after 20 years). | | | | 3 | Capital accumulation program credited service relates to the number of full years of vesting credit accrued by Mr. Chirico based on the effective date of his underlying agreement. The benefit is fully vested after 10 years. Retirement age is the program’s “normal” retirement age or the earliest time when a participant may retire without an age-based reduction. |
PVH CORP. 2021 PROXY STATEMENT| 75 | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | | | 63 | | |
Executive Compensation Tables Defined Benefit Plans
Defined Benefit Plans
DEFINED BENEFIT PLANSPension Plan Our Pension Plan is a qualified defined benefit plan. The Pension Plan is open to U.S.-based salaried, hourly clerical, and production, warehouse and distribution associates, with a few exceptions. For example, associates are not eligible to participate in the Plan if they are members of a collective bargaining unit that has not negotiated participation, they are independent contractors or consultants, or they are covered by another Company-provided pension plan. Salaried associates are eligible to participate beginning on the first day of the calendar quarter after they have completed one year of service in which they have worked at least 1,000 hours. Hourly associates are eligible to participate beginning on the first day of the calendar quarter after they have completed three months of service, provided thatif it is anticipated they will work at least 1,000 hours in the year. The benefits under the Pension Plan generally are based on a participant’s career average compensation, excluding relocation pay, sign-on bonus, stay bonus, clothing allowance, Long-Term Incentive Plan pay and education expenses. Pre-2000 benefits for current salaried associates are based on pre-2000 last five years’ average compensation, unless the participant’s career average compensation is greater than the last five years’ average. The participant’s prior service benefit and future service benefit are added together to determine the total retirement benefit. The prior service benefit is calculated by taking 1.00% of the past service compensation, plus 0.50% of the past service compensation over the Social Security average breakpoint (dollar amount determined by the year in which the participant reaches Social Security Normal Retirement Age), multiplied by the prior benefit service at December 31, 1999. The future service benefit is calculated by taking 1.00% of each year’s future service compensation, plus 0.50% of each year’s future service compensation over the Social Security-covered compensation breakpoint for each year of benefit service, assuming that the total benefit service (including prior service) does not exceed 35 years. Benefits under the Pension Plan are vested after five years of service or, if earlier, when the participant becomes totally and permanently disabled or reaches age 65. TheWith the exception of Mr. Larsson, the benefits of our U.S.-based NEOs are fully vested. Any participant who would be credited with fewer than 501 hours in a plan year due to a leave associated with the birth or adoption of a child or related childcare will be credited with 501 hours of service to prevent a break in service. A participantParticipants will not incur a break in service due to any leave of absence in accordance with the provisions of the Family and Medical Leave Act of 1993 or on account of military duty, provided they return to work within the re-employment period under Federal law. Pension benefits become payable on the first day of the month following retirement, which is normally at age 65. Participants who have completed tenfive or more years of service are eligible for early retirement benefits, but they must wait until they attain age 55 before benefit payments commence.a lump sum distribution (or an immediate annuity form of distribution) at termination, regardless of age. Participants who terminate employment prior to age 55 and have worked less than ten or more years will receiveare eligible for an unsubsidized early retirement benefitsbenefit based on the factors in the following table: | Age at Commencement | | | Early Retirement Factor | | | 55 | | | | | 40.00% | | | | 56 | | | | | 43.00% | | | | 57 | | | | | 46.00% | | | | 58 | | | | | 50.00% | | | | 59 | | | | | 55.00% | | | | 60 | | | | | 60.00% | | | | 61 | | | | | 66.00% | | | | 62 | | | | | 73.00% | | | | 63 | | | | | 81.00% | | | | 64 | | | | | 90.00% | | | | 65 | | | | | 100.00% | | |
| Age at Commencement | Early Retirement Factor | | 55 | 40.00% | | 56 | 43.00% | | 57 | 46.00% | | 58 | 50.00% | | 59 | 55.00% | | 60 | 60.00% | | 61 | 66.00% | | 62 | 73.00% | | 63 | 81.00% | | 64 | 90.00% | | 65 | 100.00% |
76 | PVH CORP. 2021 PROXY STATEMENT | | 64 | | | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | |
EXECUTIVE COMPENSATION TABLES Executive Compensation TablesDEFINED BENEFIT PLANS Defined Benefit Plans We subsidize the early retirement benefit for participants who retire when they are over age 55 or over and have worked more than ten years by making benefit payments in the applicable percentage shown below based on actual age and years of service. | | | | | | | | | | | | | | Age at
Commencement | | | Years of Service | | | | 10 | | | 11 | | | 12 | | | 13 | | | 14 | | | 15 | | | 16 | | | 17 | | | 18 | | | 19 | | | 20 | | | 64 | | | | | 95.00% | | | | | | 95.15% | | | | | | 95.30% | | | | | | 95.45% | | | | | | 95.60% | | | | | | 95.75% | | | | | | 95.90% | | | | | | 96.05% | | | | | | 96.20% | | | | | | 96.35% | | | | | | 96.50% | | | | 63 | | | | | 90.00% | | | | | | 90.30% | | | | | | 90.60% | | | | | | 90.90% | | | | | | 91.20% | | | | | | 91.50% | | | | | | 91.80% | | | | | | 92.10% | | | | | | 92.40% | | | | | | 92.70% | | | | | | 93.00% | | | | 62 | | | | | 85.00% | | | | | | 85.45% | | | | | | 85.90% | | | | | | 86.35% | | | | | | 86.80% | | | | | | 87.25% | | | | | | 87.70% | | | | | | 88.15% | | | | | | 88.60% | | | | | | 89.05% | | | | | | 89.50% | | | | 61 | | | | | 80.00% | | | | | | 80.60% | | | | | | 81.20% | | | | | | 81.80% | | | | | | 82.40% | | | | | | 83.00% | | | | | | 83.60% | | | | | | 84.20% | | | | | | 84.80% | | | | | | 85.40% | | | | | | 86.00% | | | | 60 | | | | | 75.00% | | | | | | 75.75% | | | | | | 76.50% | | | | | | 77.25% | | | | | | 78.00% | | | | | | 78.75% | | | | | | 79.50% | | | | | | 80.25% | | | | | | 81.00% | | | | | | 81.75% | | | | | | 82.50% | | | | 59 | | | | | 70.00% | | | | | | 70.90% | | | | | | 71.80% | | | | | | 72.70% | | | | | | 73.60% | | | | | | 74.50% | | | | | | 75.40% | | | | | | 76.30% | | | | | | 77.20% | | | | | | 78.10% | | | | | | 79.00% | | | | 58 | | | | | 65.00% | | | | | | 66.05% | | | | | | 67.10% | | | | | | 68.15% | | | | | | 69.20% | | | | | | 70.25% | | | | | | 71.30% | | | | | | 72.35% | | | | | | 73.40% | | | | | | 74.45% | | | | | | 75.50% | | | | 57 | | | | | 60.00% | | | | | | 61.20% | | | | | | 62.40% | | | | | | 63.60% | | | | | | 64.80% | | | | | | 66.00% | | | | | | 67.20% | | | | | | 68.40% | | | | | | 69.60% | | | | | | 70.80% | | | | | | 72.00% | | | | 56 | | | | | 55.00% | | | | | | 56.35% | | | | | | 57.70% | | | | | | 59.05% | | | | | | 60.40% | | | | | | 61.75% | | | | | | 63.10% | | | | | | 64.45% | | | | | | 65.80% | | | | | | 67.15% | | | | | | 68.50% | | | | 55 | | | | | 50.00% | | | | | | 51.50% | | | | | | 53.00% | | | | | | 54.50% | | | | | | 56.00% | | | | | | 57.50% | | | | | | 59.00% | | | | | | 60.50% | | | | | | 62.00% | | | | | | 63.50% | | | | | | 65.00% | | |
| | | | | | | | | | | | | Age at
Commencement | | | Years of Service | | | | 21 | | | 22 | | | 23 | | | 24 | | | 25 | | | 26 | | | 27 | | | 28 | | | 29 | | | 30 | | | 64 | | | | | 96.65% | | | | | | 96.80% | | | | | | 96.95% | | | | | | 97.10% | | | | | | 97.25% | | | | | | 97.40% | | | | | | 97.55% | | | | | | 97.70% | | | | | | 97.85% | | | | | | 98.00% | | | | 63 | | | | | 93.30% | | | | | | 93.60% | | | | | | 93.90% | | | | | | 94.20% | | | | | | 94.50% | | | | | | 94.80% | | | | | | 95.10% | | | | | | 95.40% | | | | | | 95.70% | | | | | | 96.00% | | | | 62 | | | | | 89.95% | | | | | | 90.40% | | | | | | 90.85% | | | | | | 91.30% | | | | | | 91.75% | | | | | | 92.20% | | | | | | 92.65% | | | | | | 93.10% | | | | | | 93.55% | | | | | | 94.00% | | | | 61 | | | | | 86.60% | | | | | | 87.20% | | | | | | 87.80% | | | | | | 88.40% | | | | | | 89.00% | | | | | | 89.60% | | | | | | 90.20% | | | | | | 90.80% | | | | | | 91.40% | | | | | | 92.00% | | | | 60 | | | | | 83.25% | | | | | | 84.00% | | | | | | 84.75% | | | | | | 85.50% | | | | | | 86.25% | | | | | | 87.00% | | | | | | 87.75% | | | | | | 88.50% | | | | | | 89.25% | | | | | | 90.00% | | | | 59 | | | | | 79.90% | | | | | | 80.80% | | | | | | 81.70% | | | | | | 82.60% | | | | | | 83.50% | | | | | | 84.40% | | | | | | 85.30% | | | | | | 86.20% | | | | | | 87.10% | | | | | | 88.00% | | | | 58 | | | | | 76.55% | | | | | | 77.60% | | | | | | 78.65% | | | | | | 79.70% | | | | | | 80.75% | | | | | | 81.80% | | | | | | 82.85% | | | | | | 83.90% | | | | | | 84.95% | | | | | | 86.00% | | | | 57 | | | | | 73.20% | | | | | | 74.40% | | | | | | 75.60% | | | | | | 76.80% | | | | | | 78.00% | | | | | | 79.20% | | | | | | 80.40% | | | | | | 81.60% | | | | | | 82.80% | | | | | | 84.00% | | | | 56 | | | | | 69.85% | | | | | | 71.20% | | | | | | 72.55% | | | | | | 73.90% | | | | | | 75.25% | | | | | | 76.60% | | | | | | 77.95% | | | | | | 79.30% | | | | | | 80.65% | | | | | | 82.00% | | | | 55 | | | | | 66.50% | | | | | | 68.00% | | | | | | 69.50% | | | | | | 71.00% | | | | | | 72.50% | | | | | | 74.00% | | | | | | 75.50% | | | | | | 77.00% | | | | | | 78.50% | | | | | | 80.00% | | |
Years of Service Age at
Commencement | | 10 | | 11 | | 12 | | 13 | | 14 | | 15 | | 16 | | 17 | | 18 | | 19 | | 20 | | 64 | | 95.00% | | 95.15% | | 95.30% | | 95.45% | | 95.60% | | 95.75% | | 95.90% | | 96.05% | | 96.20% | | 96.35% | | 96.50% | | 63 | | 90.00% | | 90.30% | | 90.60% | | 90.90% | | 91.20% | | 91.50% | | 91.80% | | 92.10% | | 92.40% | | 92.70% | | 93.00% | | 62 | | 85.00% | | 85.45% | | 85.90% | | 86.35% | | 86.80% | | 87.25% | | 87.70% | | 88.15% | | 88.60% | | 89.05% | | 89.50% | | 61 | | 80.00% | | 80.60% | | 81.20% | | 81.80% | | 82.40% | | 83.00% | | 83.60% | | 84.20% | | 84.80% | | 85.40% | | 86.00% | | 60 | | 75.00% | | 75.75% | | 76.50% | | 77.25% | | 78.00% | | 78.75% | | 79.50% | | 80.25% | | 81.00% | | 81.75% | | 82.50% | | 59 | | 70.00% | | 70.90% | | 71.80% | | 72.70% | | 73.60% | | 74.50% | | 75.40% | | 76.30% | | 77.20% | | 78.10% | | 79.00% | | 58 | | 65.00% | | 66.05% | | 67.10% | | 68.15% | | 69.20% | | 70.25% | | 71.30% | | 72.35% | | 73.40% | | 74.45% | | 75.50% | | 57 | | 60.00% | | 61.20% | | 62.40% | | 63.60% | | 64.80% | | 66.00% | | 67.20% | | 68.40% | | 69.60% | | 70.80% | | 72.00% | | 56 | | 55.00% | | 56.35% | | 57.70% | | 59.05% | | 60.40% | | 61.75% | | 63.10% | | 64.45% | | 65.80% | | 67.15% | | 68.50% | | 55 | | 50.00% | | 51.50% | | 53.00% | | 54.50% | | 56.00% | | 57.50% | | 59.00% | | 60.50% | | 62.00% | | 63.50% | | 65.00% |
Years of Service Age at
Commencement | | 21 | | 22 | | 23 | | 24 | | 25 | | 26 | | 27 | | 28 | | 29 | | 30 | | 64 | | 96.65% | | 96.80% | | 96.95% | | 97.10% | | 97.25% | | 97.40% | | 97.55% | | 97.70% | | 97.85% | | 98.00% | | 63 | | 93.30% | | 93.60% | | 93.90% | | 94.20% | | 94.50% | | 94.80% | | 95.10% | | 95.40% | | 95.70% | | 96.00% | | 62 | | 89.95% | | 90.40% | | 90.85% | | 91.30% | | 91.75% | | 92.20% | | 92.65% | | 93.10% | | 93.55% | | 94.00% | | 61 | | 86.60% | | 87.20% | | 87.80% | | 88.40% | | 89.00% | | 89.60% | | 90.20% | | 90.80% | | 91.40% | | 92.00% | | 60 | | 83.25% | | 84.00% | | 84.75% | | 85.50% | | 86.25% | | 87.00% | | 87.75% | | 88.50% | | 89.25% | | 90.00% | | 59 | | 79.90% | | 80.80% | | 81.70% | | 82.60% | | 83.50% | | 84.40% | | 85.30% | | 86.20% | | 87.10% | | 88.00% | | 58 | | 76.55% | | 77.60% | | 78.65% | | 79.70% | | 80.75% | | 81.80% | | 82.85% | | 83.90% | | 84.95% | | 86.00% | | 57 | | 73.20% | | 74.40% | | 75.60% | | 76.80% | | 78.00% | | 79.20% | | 80.40% | | 81.60% | | 82.80% | | 84.00% | | 56 | | 69.85% | | 71.20% | | 72.55% | | 73.90% | | 75.25% | | 76.60% | | 77.95% | | 79.30% | | 80.65% | | 82.00% | | 55 | | 66.50% | | 68.00% | | 69.50% | | 71.00% | | 72.50% | | 74.00% | | 75.50% | | 77.00% | | 78.50% | | 80.00% |
All of our U.S.-based NEOs, with the exception of Mr. Larsson, are eligible for subsidized early retirement benefits. Benefits under the Pension Plan become payable on the first of the month following retirement, normally at age 65, absent any election by a participant to commence the payment of benefits at a different time. Benefits are payable in one of the following ways: Life-only annuity. A participant who is not married or married less than 12 months when payments begin and who does not elect an optional payment method will receive the full amount of the benefit in equal monthly installments for life. Payments begin on the first of the month following the retirement date. After death, no additional payments are made. 50% joint & survivor annuity. A participant who is married for at least 12 months when payments begin will receive the benefit as a 50% Joint & Survivor Annuity absent an election by the participant (and spousal consent) for an optional payment form. Under this option, a participant will receive a reduced monthly benefit for life. Thereafter, the participant’s spouse receives a benefit equal to 50% of the monthly benefit the participant was receiving. If the spouse dies before the participant but after the participant begins receiving payments, the participant will continue to receive the same benefit amount for life and no additional payments are made after death. 100% (or 75% or 66 2∕366⅔%) joint & survivor annuity. A participant will receive a reduced lifetime benefit under this option. The participant names a beneficiary and chooses the percentage of the benefit to continue to that individual after the participant’s death. After death, the beneficiary receives the percentage of benefit elected (100%, 75% or 662∕366⅔%) for life. The participant’s age at the date benefits commence, the beneficiary’s age and the percentage elected to continue after death affect the amount of the benefit received during the participant’s lifetime. PVH CORP. 2021 PROXY STATEMENT | 77 | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | | | 65 | | |
EXECUTIVE COMPENSATION TABLES Executive Compensation TablesDEFINED BENEFIT PLANS Defined Benefit Plans Life & period certain annuity. A participant will receive a reduced lifetime benefit in equal monthly installments with payments guaranteed for at least the period of time elected (between one and 15 years) under this option. Payments continue for the rest of the participant’s life even if he or she lives longer than the period of time elected. However, if the participant receives less than the minimum number of payments before death, the same monthly benefit continues to the beneficiary until the combined total number of installment payments are made. Full refund annuity. A participant will receive a reduced benefit for life, payable in equal monthly installments, under this option. If the participant dies before receiving the full single lump sum value of his or her benefit, determined at the date of retirement, the balance will be paid to the participant’s beneficiary in a single lump sum payment. In addition, payments will continue to be paid for the rest of the participant’s life, even if the guaranteed lump sum value is exceeded. Social Security equalization. This option allows a participant who retires early to receive an increased monthly payment from the Pension Plan until the participant is eligible for Social Security benefits. After Social Security benefits begin, the monthly payment from the Pension Plan is reduced. This option does not provide any survivor benefits and, therefore, no benefit is payable after death. Lump Sum Payments. A participant may elect to receive their retirement benefit in a single lump sum calculated to be the actuarial equivalent value of the life-only annuity they would receive at age 65 or a deferred retirement date. If qualified for early retirement, the lump sum will be equal to the actuarial equivalent value of the life-only annuity, determined after application of the Early Retirement Factors described above, or the lump sum value of the age-65 pension, if greater. Supplemental Pension Plan Our Supplemental Pension Plan is a non-qualified defined benefit plan. Certain U.S.-based management and highly paid associates who are participants in our qualified Pension Plan, including our U.S.-based Named Executive Officers, are eligible for benefits under our Supplemental Pension Plan. This plan was created to provide deferred compensation to highly compensated individuals in an effort to promote continuity of management and increased incentive and personal interest in the welfare of PVH on the part of those who are or may become primarily responsible for shaping and carrying out our long-range plans and securing our continued growth and financial success. Our Supplemental Pension Plan is designed to work in conjunction with our Pension Plan. The pension benefit outlined in our Pension Plan is calculated as if there were no compensation limits under the Code. The maximum benefit allowable is paid out under the Pension Plan and the balance is paid out under the Supplemental Pension Plan. A participant in our Supplemental Pension Plan will not have any vested interest in such portion of any benefit that accrues on or after January 1, 2007, unless the sum of the participant’s attained age and credited vesting years equals or exceeds 65 and, while employed by us, the participant has reached age 50 and has completed at least ten credited vesting years. Five credited vesting years is required for any benefit that accrues prior to January 1, 2007. As part of the enrollment process, a participant may elect for benefits to be paid following termination in one of the following four ways: ■
in a lump sum within 60 days of termination of employment;
■
in a lump sum deferred until January 1 of the year following termination of employment;
■
in five equal annual installments commencing January of the year following termination of employment; or
■
in ten equal annual installments commencing January of the year following termination of employment, (applicable for benefit accruals from January 1, 2019, forward).
| ◾ | in a lump sum within 60 days of termination of employment; | | | | ◾ | in a lump sum deferred until January 1 of the year following termination of employment; | | | | ◾ | in five equal annual installments commencing in January of the year following termination of employment; or | | | | ◾ | in ten equal annual installments commencing in January of the year following termination of employment (applicable for benefit accruals beginning January 1, 2019). |
Participants may change their benefit payment elections any time up to one year before the then-scheduled distribution date. In addition, for benefits that accrue on or after January 1, 2005, the new election must extend the commencement date of the benefit payment by at least five years from the then-scheduled distribution date. Benefits under our Supplemental Pension Plan are unsecured and generally are payable from our general assets. Payments will be delayed if and to the extent that payment within six months of the termination of employment willwould result in the imposition of additional taxes on the participant pursuant to Section 409A of the Code. Payments delayed underpursuant to Section 409A will accrue interest during the deferral period at the 10-year Treasury bill rate in effect on the first business day of the plan year in which the delayed payment period commences. 78 | PVH CORP. 2021 PROXY STATEMENT EXECUTIVE COMPENSATION TABLES NON-QUALIFIED DEFERRED COMPENSATION Capital Accumulation Program Our capital accumulation program is a non-qualified defined benefit program that was created to retain a select group of senior executives. Under the program, participants are party to individual agreements under which participants who remain in our employ for a period of ten years from the date of their agreement are entitled to receive payments equaling a specified benefit after the termination of their employment. The benefit vests over a five-year period, commencing on the fifth anniversary of the execution of | | 66 | | | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | |
Executive Compensation Tables Non-Qualified Deferred Compensation
the agreement. Interest accrues on the benefit amount once it is fully vested and the participant has reached age 55. Interest is compounded annually and is equal to the average of the 10-year Treasury bill rate on the first day of each month until payment commences. The vested portion of the benefit (including any accrued interest) generally is paid in semi-monthly installments over a 10-year period commencing after the participant reaches age 65. The agreements provide that if a participant’s employment is terminated following a change in control (as defined), the full undiscounted value of the future payments to be made to the participant under the program become immediately payable in a lump sum. The benefits under the agreements are forfeited upon a termination of a participant’s employment for cause. Each participant’s rights are subject to non-competition and non-disclosure restrictions that automatically terminate upon a change in control of PVH. Messrs.Mr. Chirico and Duane each are partiesis the only NEO who is party to an agreement with us under the capital accumulation program that provideprogram; it provides for benefitsa benefit of $2,000,000 each.$2,000,000. Payments will be delayed if and to the extent that payment within six months of the termination of employment willwould result in the imposition of additional taxes on the participantMr. Chirico pursuant to Section 409A of the Code. Payments delayed underpursuant to Section 409A will accrue interest during the deferral period at a rate per annum, equal to the average of the 10-year Treasury bill rate in effect on the first day of each calendar month during the delay period. Non-Qualified Deferred Compensation
NON-QUALIFIED DEFERRED COMPENSATION Our sole non-qualified defined contribution deferred compensation plan is our Supplemental Savings Plan. | Name | | | Executive
Contributions in
Last Fiscal Year1
($) | | | Registrant
Contributions in
Last Fiscal Year1
($) | | | Aggregate
Earnings in
Last Fiscal Year2
($) | | | Aggregate
Withdrawals/
Distributions
($) | | | Aggregate
Balance at
Last Fiscal Year3
($) | | | Emanuel Chirico | | | | | 365,625 | | | | | | 156,375 | | | | | | 162,415 | | | | | | — | | | | | | 7,145,625 | | | | Michael A. Shaffer | | | | | 225,521 | | | | | | 73,188 | | | | | | 50,561 | | | | | | — | | | | | | 2,295,472 | | | | Francis K. Duane | | | | | 387,958 | | | | | | 85,000 | | | | | | 124,283 | | | | | | — | | | | | | 5,339,805 | | | | Daniel Grieder | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | Steven B. Shiffman | | | | | 457,228 | | | | | | 55,860 | | | | | | 74,801 | | | | | | — | | | | | | 3,249,240 | | |
1
Amounts are reported in the Summary Compensation Table for 2018.
2
Amounts are not reported in the Summary Compensation Table.
3
The amounts shown include amounts that were reported in the Summary Compensation Table for 2017 and 2016. The aggregate of the previously reported amounts is $876,076 for Mr. Chirico; $449,899 for Mr. Shaffer; $429,472 for Mr. Duane; and $824,600 for Mr. Shiffman.
| Name | Executive
Contributions in
Last Fiscal Year1
($) | Registrant
Contributions in
Last Fiscal Year1
($) | Aggregate
Earnings in
Last Fiscal Year2
($) | Aggregate
Withdrawals/
Distributions
($) | Aggregate
Balance at
Last Fiscal Year3
($) | | EMANUEL CHIRICO | 194,425 | 97,213 | 145,825 | — | 8,401,668 | | MICHAEL A. SHAFFER | 89,882 | 42,214 | 48,422 | — | 2,816,312 | | STEFAN LARSSON | — | — | — | — | — | | CHERYL ABEL-HODGES | 356,875 | 42,088 | 38,966 | — | 2,359,646 | | MARTIJN HAGMAN | N/A | N/A | N/A | N/A | N/A |
| 1 | Amounts are reported in the Summary Compensation Table for 2020. | | | | 2 | Amounts are not reported in the Summary Compensation Table. | | | | 3 | The amounts shown include amounts that were reported in the Summary Compensation Table for 2018 and 2019. The aggregate of the previously reported amounts is $1,144,057 for Mr. Chirico, $574,781 for Mr. Shaffer, and $356,259 for Ms. Abel-Hodges. |
Supplemental Savings Plan Our Supplemental Savings Plan (“SSP”) is a non-qualified defined contribution plan that was designed to work in conjunction with the AIP (ourour 401(k) plan)plan to provide key executives and certain “highly compensated associates” (as defined under the Code) sufficient pre-tax retirement savings opportunities. The plan is available to associates with a minimum base salary of $150,000 who are eligible for and participate in our AIP, including all of our U.S.-based Named Executive Officers. Participants may elect a deferral rate of up to 25% (75% effective75% (25% prior to January 1, 2019) of base pay for their contributions. Deferrals are directed first to a participant’s AIP account up to the maximum amount of eligible pay available under the law. Effective January 1, 2019, SSP contributions for the year willdo not begin until the maximum permitted contributions have been made under the AIP.401(k) plan. Eligible pay under our Supplemental Savings Plan includes all categories of pay eligible under the AIP,401(k) plan, as well as payouts under our Performance Incentive Bonus Plan. Participants may elect to defer up to 25% (75%75% of bonus compensation (25% for bonus based on 2019 fiscal year performance) of bonus compensationperformance prior to 2019) into their Supplemental Savings Plan accounts. For the Supplemental Savings Plan, PVH contributes an amount equal to 100% of the first 2% of total compensation contributed by a participant, and an amount equal to 25% of the next 4% of total compensation contributed by the participant. Effective January 1, 2019, the match formula under the SSP was updated to the same formula that applies under the AIP. For the AIP, PVH contributes an amount equal to 100% of the first 1% of total compensation contributed by a participant, and an amount equal to 50% of the next 5% of total compensation contributed by the participant. PVH CORP. 2021 PROXY STATEMENT | 79 | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | | | 67 | | |
EXECUTIVE COMPENSATION TABLES Executive Compensation TablesPOTENTIAL PAYMENTS UPON TERMINATION AND CHANGE IN CONTROL PROVISIONS
Potential Payments Upon Termination and Change in Control Provisions Our Supplemental Savings Plan is an unfunded plan. Participant contributions and our matching contributions are not invested in actual securities or maintained in an independent trust for the exclusive benefit of plan participants. Instead, for technical and tax reasons, contributions to our Supplemental Savings Plan are retained as part of our general assets — a common corporate practice. Therefore, benefits are dependent on our ability to pay them when they become due. Participant contributions, as well as our matching contributions for the NEOs, are measured against the 10-year Treasury bill. These contributions accrue interest based on the rate of return for 10-year Treasury bills, as established on January 1 of each calendar year. A participant’s before-tax contributions in our Supplemental Savings Plan are immediately fully vested. Our matching contributions vest ratably from the second through the fifth year of employment or, if earlier, when the participant reaches age 65, dies, or becomes totally and permanently disabled. As part of the enrollment process, participants can elect to have their vested amount under the Supplemental Savings Plan be distributed following termination in one of the following four ways: ■
in a lump sum within 30 days of termination of employment;
■
in a lump sum deferred until January 1 of the year following termination of employment;
■
in five equal annual installments commencing January of the year following termination of employment; or
■
in ten equal annual installments commencing January of the year following termination of employment.
| ◾ | in a lump sum within 30 days of termination of employment; | | | | ◾ | in a lump sum deferred until January 1 of the year following termination of employment; | | | | ◾ | in five equal annual installments commencing in January of the year following termination of employment; or | | | | ◾ | in ten equal annual installments commencing in January of the year following termination of employment (applicable for contributions made beginning January 1, 2019). |
Payments will be delayed if and to the extent that payment within six months of the termination of employment willwould result in the imposition of additional taxes on the participant pursuant to Section 409A of the Code. Payments delayed underpursuant to Section 409A will accrue interest during the deferral period at a rate per annum equal to the 10-year Treasury bill rate in effect on the first day of the plan year in which the deferral begins, or, if the deferral period extends beyond the close of the plan year, the interest rate for the remainder of the deferral period will equal the 10-year Treasury bill rate on the first day of the following plan year. Potential Payments Upon Termination and Change in Control Provisions
POTENTIAL PAYMENTS UPON TERMINATION AND CHANGE IN CONTROL PROVISIONS We maintain certain agreements, plans, and programs that require us to provide compensation to our Named Executive Officers in the event of a termination of employment or a change in control. For more information, see “Narrative Disclosure to Summary Compensation Table and Grants of Plan-Based Awards Table” beginning on page 55. 65.The following tables disclose the potential payments upon termination of employment or change in control with respect to each NEO. The assumptions used are set forth below the last table. | Emanuel Chirico | | | Voluntary
Termination at
February 3,
2019 | | | Retirement at
February 3,
2019 | | | Death at
February 3,
2019 | | | Disability at
February 3,
2019 | | | Termination
Without Cause or for
Good Reason at
February 3,
2019 | | | Termination
for Cause at
February 3,
2019 | | | Termination
Without Cause or
for Good Reason
Upon Change in
Control at
February 3,
20191 | | | Severance value2 | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 9,000,000 | | | | | $ | 0 | | | | | $ | 13,500,000 | | | | Performance Incentive Bonus Plan3 | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | Long-Term Incentive Plan4 | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | Value of “in the money” unexercisable stock options5 | | | | | 0 | | | | | | 0 | | | | | | 695,142 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 695,142 | | | | Value of unvested restricted stock units6 | | | | | 0 | | | | | | 0 | | | | | | 5,301,071 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 5,301,071 | | | Value of unvested performance share units7 | | | | | 0 | | | | | | 0 | | | | | | 10,199,313 | | | | | | 2,944,777 | | | | | | 2,944,777 | | | | | | 0 | | | | | | 10,199,313 | | | | Capital accumulation program8 | | | | | 1,791,183 | | | | | | 1,791,183 | | | | | | 2,029,455 | | | | | | 1,791,183 | | | | | | 1,791,183 | | | | | | 0 | | | | | | 2,324,742 | | | | Welfare benefits value9 | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 39,936 | | | | | | 0 | | | | | | 59,904 | | | | Payout adjustment10 | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | Total | | | | $ | 1,791,183 | | | | | $ | 1,791,183 | | | | | $ | 18,224,981 | | | | | $ | 4,735,960 | | | | | $ | 13,775,896 | | | | | $ | 0 | | | | | $ | 32,080,172 | | |
| Emanuel Chirico | | Voluntary
Termination at
January 31, 2021 | | Retirement at
January 31, 2021 | | Death at
January 31, 2021 | | Disability at
January 31, 2021 | | Termination
Without Cause or
for Good Reason at
January 31, 2021 | | Termination
for Cause at
January 31, 2021 | | Termination
Without Cause or for
Good Reason Upon
Change in Control at
January 31, 20211 | | Severance Value2 | | $0 | | $0 | | $0 | | $0 | | $6,000,000 | | $0 | | $9,000,000 | | Performance Incentive Bonus Plan3 | | 0 | | 0 | | 0 | | 0 | | 0 | | 0 | | 0 | | Long-Term Incentive Plan4 | | N/A | | N/A | | N/A | | N/A | | N/A | | N/A | | N/A | | Value of “in the money” unexercisable stock options5 | | 2,474,331 | | 2,474,331 | | 2,474,331 | | 2,474,331 | | 2,474,331 | | 0 | | 2,474,331 | | Value of unvested restricted stock units6 | | 6,768,195 | | 6,768,195 | | 6,768,195 | | 6,768,195 | | 6,768,195 | | 0 | | 6,768,195 | | Value of unvested performance share units7 | | 13,767,614 | | 13,767,614 | | 5,755,168 | | 13,767,614 | | 13,767,614 | | 0 | | 13,767,614 | | Capital accumulation program8 | | 2,014,073 | | 2,014,073 | | 2,116,314 | | 2,014,073 | | 2,014,073 | | 0 | | 2,386,341 | | Welfare benefits value9 | | 0 | | 0 | | 0 | | 0 | | 43,298 | | 0 | | 64,947 | | Payout adjustment10 | | 0 | | 0 | | 0 | | 0 | | 0 | | 0 | | 0 | | Total | | $25,024,213 | | $25,024,213 | | $17,114,008 | | $25,024,213 | | $31,067,511 | | $0 | | $34,461,428 |
80 | PVH CORP. 2021 PROXY STATEMENT | | 68 | | | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | |
EXECUTIVE COMPENSATION TABLES Executive Compensation TablesPOTENTIAL PAYMENTS UPON TERMINATION AND CHANGE IN CONTROL PROVISIONS
Potential Payments Upon Termination and Change in Control Provisions | Michael A. Shaffer | | | Voluntary
Termination at
February 3,
2019 | | | Retirement at
February 3,
2019 | | | Death at
February 3,
2019 | | | Disability at
February 3,
2019 | | | Termination
Without Cause
or for Good
Reason at
February 3,
2019 | | | Termination
for Cause at
February 3,
2019 | | | Termination
Without Cause or
for Good Reason
Upon Change in
Control at
February 3,
20191 | | | Severance value2 | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 2,775,000 | | | | | $ | 0 | | | | | $ | 3,700,000 | | | | Performance Incentive Bonus Plan3 | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | Long-Term Incentive Plan4 | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | Value of “in the money” unexercisable stock options5 | | | | | 0 | | | | | | 0 | | | | | | 191,625 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 191,625 | | | | Value of unvested restricted stock units6 | | | | | 0 | | | | | | 0 | | | | | | 1,847,071 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 1,847,071 | | | | Value of unvested performance share units7 | | | | | 0 | | | | | | 0 | | | | | | 969,396 | | | | | | 279,218 | | | | | | 279,218 | | | | | | 0 | | | | | | 969,396 | | | | Capital accumulation program8 | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | Welfare benefits value9 | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 36,279 | | | | | | 0 | | | | | | 48,372 | | | | Payout adjustment10 | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | Total | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 3,008,092 | | | | | $ | 279,218 | | | | | $ | 3,090,497 | | | | | $ | 0 | | | | | $ | 6,756,464 | | |
| Francis K. Duane | | | Voluntary
Termination at
February 3,
2019 | | | Retirement at
February 3,
2019 | | | Death at
February 3,
2019 | | | Disability at
February 3,
2019 | | | Termination
Without Cause
or for Good
Reason at
February 3,
2019 | | | Termination
for Cause at
February 3,
2019 | | | Termination
Without Cause or
for Good Reason
Upon Change in
Control at
February 3,
20191 | | | Severance value2 | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 4,903,767 | | | | | $ | 0 | | | | | $ | 4,903,767 | | | | Performance Incentive Bonus Plan3 | | | | | 0 | | �� | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | Long-Term Incentive Plan4 | | | | | 0 | | | | | | 0 | | | | | | 200,000 | | | | | | 200,000 | | | | | | 200,000 | | | | | | 0 | | | | | | 300,000 | | | | Value of “in the money” unexercisable stock options5 | | | | | 0 | | | | | | 0 | | | | | | 151,194 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 151,194 | | | | Value of unvested restricted stock units6 | | | | | 763,386 | | | | | | 763,386 | | | | | | 3,314,026 | | | | | | 0 | | | | | | 2,290,159 | | | | | | 0 | | | | | | 3,314,026 | | | | Value of unvested performance share units7 | | | | | 0 | | | | | | 0 | | | | | | 715,106 | | | | | | 205,450 | | | | | | 205,450 | | | | | | 0 | | | | | | 715,106 | | | | Capital accumulation program8 | | | | | 1,689,645 | | | | | | 1,689,645 | | | | | | 1,902,617 | | | | | | 1,689,645 | | | | | | 1,689,645 | | | | | | 0 | | | | | | 2,184,527 | | | | Welfare benefits value9 | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 50,388 | | | | | | 0 | | | | | | 50,388 | | | | Payout adjustment10 | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | Total | | | | $ | 2,453,031 | | | | | $ | 2,453,031 | | | | | $ | 6,282,943 | | | | | $ | 2,095,095 | | | | | $ | 9,339,409 | | | | | $ | 0 | | | | | $ | 11,619,008 | | |
| Daniel Grieder | | | Voluntary
Termination at
February 3,
2019 | | | Retirement at
February 3,
2019 | | | Death at
February 3,
2019 | | | Disability at
February 3,
2019 | | | Termination
Without Cause
or for Good
Reason at
February 3,
2019 | | | Termination
for Cause at
February 3,
2019 | | | Termination
Without Cause or
for Good Reason
Upon Change in
Control at
February 3,
20191 | | | Severance value2,11 | | | | $ | 503,291 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 1,409,214 | | | | | $ | 2,013,163 | | | | | $ | 0 | | | | | $ | 2,013,163 | | | | Performance Incentive Bonus Plan3 | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | Long-Term Incentive Plan4,11 | | | | | 0 | | | | | | 0 | | | | | | 1,053,803 | | | | | | 1,053,803 | | | | | | 1,053,803 | | | | | | 0 | | | | | | 1,580,704 | | | | Value of “in the money” unexercisable stock options5 | | | | | 0 | | | | | | 0 | | | | | | 175,192 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 175,192 | | | | Value of unvested restricted stock units6 | | | | | 0 | | | | | | 0 | | | | | | 1,682,735 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 1,682,735 | | | | Value of unvested performance share units7 | | | | | 0 | | | | | | 0 | | | | | | 357,567 | | | | | | 102,725 | | | | | | 102,725 | | | | | | 0 | | | | | | 357,567 | | | | Capital accumulation program8 | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | Welfare benefits value9 | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | Payout adjustment10 | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | Total | | | | $ | 503,291 | | | | | $ | 0 | | | | | $ | 3,269,297 | | | | | $ | 2,565,742 | | | | | $ | 3,169,691 | | | | | $ | 0 | | | | | $ | 5,809,361 | | |
| Michael A. Shaffer | | Voluntary
Termination at
January 31, 2021 | | Retirement at
January 31, 2021 | | Death at
January 31, 2021 | | Disability at
January 31, 2021 | | Termination
Without Cause or
for Good Reason at
January 31, 2021 | | Termination
for Cause at
January 31, 2021 | | Termination
Without Cause or for
Good Reason Upon
Change in Control at
January 31, 20211 | | Severance Value2 | | $0 | | $0 | | $0 | | $0 | | $2,137,500 | | $0 | | $2,850,000 | | Performance Incentive Bonus Plan3 | | 0 | | 0 | | 0 | | 0 | | 0 | | 0 | | 0 | | Long-Term Incentive Plan4 | | N/A | | N/A | | N/A | | N/A | | N/A | | N/A | | N/A | | Value of “in the money” unexercisable stock options5 | | 0 | | 0 | | 991,571 | | 991,571 | | 0 | | 0 | | 991,571 | | Value of unvested restricted stock units6 | | 0 | | 0 | | 6,320,750 | | 6,320,750 | | 0 | | 0 | | 6,320,750 | | Value of unvested performance share units7 | | 0 | | 0 | | 634,914 | | 273,493 | | 273,493 | | 0 | | 634,914 | | Capital accumulation program8 | | N/A | | N/A | | N/A | | N/A | | N/A | | N/A | | N/A | | Welfare benefits value9 | | 0 | | 0 | | 0 | | 0 | | 32,474 | | 0 | | 43,298 | | Payout adjustment10 | | 0 | | 0 | | 0 | | 0 | | 0 | | 0 | | 0 | | Total | | $0 | | $0 | | $7,947,235 | | $7,585,814 | | $2,443,467 | | $0 | | $10,840,533 | | | | | | | | | | | | | | | | | | Stefan Larsson | | Voluntary
Termination at
January 31, 2021 | | Retirement at
January 31, 2021 | | Death at
January 31, 2021 | | Disability at
January 31, 2021 | | Termination
Without Cause or
for Good Reason at
January 31, 2021 | | Termination
for Cause at
January 31, 2021 | | Termination
Without Cause or for
Good Reason Upon
Change in Control at
January 31, 20211 | | Severance Value2 | | $0 | | $0 | | $0 | | $0 | | $4,200,000 | | $0 | | $4,200,000 | | Performance Incentive Bonus Plan3 | | 0 | | 0 | | 0 | | 0 | | 0 | | 0 | | 0 | | Long-Term Incentive Plan4 | | N/A | | N/A | | N/A | | N/A | | N/A | | N/A | | N/A | | Value of “in the money” unexercisable stock options5 | | 0 | | 0 | | 2,470,797 | | 2,470,797 | | 0 | | 0 | | 2,470,797 | | Value of unvested restricted stock units6 | | 0 | | 0 | | 3,659,786 | | 3,659,786 | | 0 | | 0 | | 3,659,786 | | Value of unvested performance share units7 | | 0 | | 0 | | 1,260,048 | | 1,423,440 | | 1,423,440 | | 0 | | 1,260,048 | | Capital accumulation program8 | | N/A | | N/A | | N/A | | N/A | | N/A | | N/A | | N/A | | Welfare benefits value9 | | 0 | | 0 | | 0 | | 0 | | 37,338 | | 0 | | 37,338 | | Payout adjustment10 | | 0 | | 0 | | 0 | | 0 | | 0 | | 0 | | 0 | | Total | | $0 | | $0 | | $7,390,631 | | $7,554,023 | | $5,660,778 | | $0 | | $11,627,969 |
PVH CORP. 2021 PROXY STATEMENT | 81 | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | | | 69 | | |
EXECUTIVE COMPENSATION TABLES Executive Compensation TablesPOTENTIAL PAYMENTS UPON TERMINATION AND CHANGE IN CONTROL PROVISIONS
Potential Payments Upon Termination and Change in Control Provisions | Steven B. Shiffman | | | Voluntary
Termination at
February 3,
2019 | | | Retirement at
February 3,
2019 | | | Death at
February 3,
2019 | | | Disability at
February 3,
2019 | | | Termination
Without Cause
or for Good
Reason at
February 3,
2019 | | | Termination
for Cause at
February 3,
2019 | | | Termination
Without Cause or
for Good Reason
Upon Change in
Control at
February 3,
20191 | | | Severance value2 | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 3,412,500 | | | | | $ | 0 | | | | | $ | 3,412,500 | | | | Performance Incentive Bonus Plan3 | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | Long-Term Incentive Plan4 | | | | | 0 | | | | | | 0 | | | | | | 1,000,000 | | | | | | 1,000,000 | | | | | | 1,000,000 | | | | | | 0 | | | | | | 1,500,000 | | | | Value of “in the money” unexercisable stock options5 | | | | | 0 | | | | | | 0 | | | | | | 149,147 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 149,147 | | | | Value of unvested restricted stock units6 | | | | | 0 | | | | | | 0 | | | | | | 1,487,075 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 1,487,075 | | | | Value of unvested performance share units7 | | | | | 0 | | | | | | 0 | | | | | | 715,106 | | | | | | 205,450 | | | | | | 205,450 | | | | | | 0 | | | | | | 715,106 | | | | Capital accumulation program8 | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | | | N/A | | | | Welfare benefits value9 | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 24,186 | | | | | | 0 | | | | | | 48,372 | | | | Payout adjustment10 | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | Total | | | | $ | 0 | | | | | $ | 0 | | | | | $ | 3,351,328 | | | | | $ | 1,205,450 | | | | | $ | 4,642,136 | | | | | $ | 0 | | | | | $ | 7,312,200 | | |
1
In the event of a change in control with no termination of employment, the NEO would be entitled to all amounts (if any) set forth in this column, except for the amounts set forth on the rows entitled Severance value and Welfare benefits value.
2
Severance is calculated in accordance with the applicable NEO’s employment agreement. For each NEO, other than Mr. Grieder and Mr. Duane, for termination without cause or for good reason, severance value is equal to a multiple of the sum of the NEO’s base salary plus an amount equal to the bonus that would be payable if target level performance were achieved. For Mr. Duane, for termination without cause or for good reason, severance value is equal to the sum of (i) his base salary through the end of his employment period; (ii) the bonus that would be payable if target level performance were achieved through the end of his employment period; and (iii) $400,000 in lieu of any annual PSU award that has not yet been made through the end of his employment agreement. For Mr. Grieder, for termination without cause or for good reason, severance value is equal to (i) the greater of his base salary for 12 months and (ii) the statutory severance amount provided under Dutch law. Additionally, for termination without cause or for good reason, Mr. Grieder would receive a pro rata payout of any bonus award granted with respect to the performance cycle during which notice of termination is given, based on the actual performance level achieved for the entire cycle. If Mr. Grieder voluntarily resigns without good reason, he is entitled to receive his base salary for six months. See pages 55–58 for applicable multiples and further detail.
3
| Cheryl Abel-Hodges | | Voluntary
Termination at
January 31, 2021 | | Retirement at
January 31, 2021 | | Death at
January 31, 2021 | | Disability at
January 31, 2021 | | Termination
Without Cause or
for Good Reason at
January 31, 2021 | | Termination
for Cause at
January 31, 2021 | | Termination
Without Cause or for
Good Reason Upon
Change in Control at
January 31, 20211 | | Severance Value2 | | $0 | | $0 | | $0 | | $0 | | $2,750,000 | | $0 | | $2,750,000 | | Performance Incentive Bonus Plan3 | | 0 | | 0 | | 0 | | 0 | | 0 | | 0 | | 0 | | Long-Term Incentive Plan4 | | N/A | | N/A | | N/A | | N/A | | N/A | | N/A | | N/A | | Value of “in the money” unexercisable stock options5 | | 0 | | 0 | | 733,964 | | 733,964 | | 0 | | 0 | | 733,964 | | Value of unvested restricted stock units6 | | 0 | | 0 | | 1,329,459 | | 1,329,459 | | 0 | | 0 | | 1,329,459 | | Value of unvested performance share units7 | | 0 | | 0 | | 269,204 | | 236,516 | | 236,516 | | 0 | | 269,204 | | Capital accumulation program8 | | N/A | | N/A | | N/A | | N/A | | N/A | | N/A | | N/A | | Welfare benefits value9 | | 0 | | 0 | | 0 | | 0 | | 52,218 | | 0 | | 52,218 | | Payout adjustment10 | | 0 | | 0 | | 0 | | 0 | | 0 | | 0 | | (87,632) | | Total | | $0 | | $0 | | $2,332,627 | | $2,299,939 | | $3,038,734 | | $0 | | $5,047,213 | | | | | | | | | | | | | | | | | | Martijn Hagman | | Voluntary
Termination at
January 31, 2021 | | Retirement at
January 31, 2021 | | Death at
January 31, 2021 | | Disability at
January 31, 2021 | | Termination
Without Cause or
for Good Reason at
January 31, 2021 | | Termination
for Cause at
January 31, 2021 | | Termination
Without Cause or for
Good Reason Upon
Change in Control at
January 31, 20211 | | Severance Value2,11 | | $970,880 | | $0 | | $0 | | $583,494 | | $1,456,320 | | $0 | | $1,456,320 | | Performance Incentive Bonus Plan3 | | 0 | | 0 | | 0 | | 0 | | 0 | | 0 | | 0 | | Long-Term Incentive Plan4 | | N/A | | N/A | | N/A | | N/A | | N/A | | N/A | | N/A | | Value of “in the money” unexercisable stock options5 | | 0 | | 0 | | 409,213 | | 409,213 | | 0 | | 0 | | 409,213 | | Value of unvested restricted stock units6 | | 0 | | 0 | | 3,764,144 | | 3,764,144 | | 0 | | 0 | | 3,764,144 | | Value of unvested performance share units7 | | 0 | | 0 | | 46,473 | | 92,946 | | 92,946 | | 0 | | 46,473 | | Capital accumulation program8 | | N/A | | N/A | | N/A | | N/A | | N/A | | N/A | | N/A | | Welfare benefits value9 | | 0 | | 0 | | 0 | | 0 | | 0 | | 0 | | 0 | | Payout adjustment10 | | N/A | | N/A | | N/A | | N/A | | N/A | | N/A | | N/A | | Total | | $970,880 | | $0 | | $4,219,830 | | $4,849,797 | | $1,549,266 | | $0 | | $5,676,150 |
| 1 | In the event of a change in control with no termination of employment in which the equity awards are not assumed by the acquirer, the NEO would be entitled to all amounts (if any) set forth in this column, except for the amounts set forth on the rows entitled Severance value and Welfare benefits value. In the event of a change in control with no termination of employment in which equity awards are assumed by the acquirer, the NEO would not be entitled to receive any of the amounts set forth in this column. | | | | 2 | Severance is calculated in accordance with the applicable NEO’s employment agreement and for termination without cause or for good reason, is equal to a multiple of the sum of the NEO’s base salary plus an amount equal to the bonus that would be payable if target level performance were achieved. The target amounts included reflect the 50% reduction in bonus target percentages in 2020. Additionally, if Mr. Hagman voluntarily resigns, he is entitled to receive his base salary for 12 months. In the event of his disability, Mr. Hagman is entitled to receive statutory payments under Dutch law. See pages 68-69 for applicable multiples and further detail. Mr. Chirico entered into a transition agreement with us, dated January 31, 2021, and effective February 1, 2021, that superseded his employment agreement. If we terminate Mr. Chirico’s employment without cause after January 31, 2021 and prior to December 31, 2021, then he will be entitled to the remaining payments of base salary under the transition agreement through December 31, 2021. See page 68. | | | | 3 | A participant generally must be employed by PVH on the last day of the applicable performance cycle to remain eligible to receive a bonus under our Performance Incentive Bonus Plan. Therefore, if a termination of employment or change in control had occurred on January 31, 2021, each NEO would have been entitled to receive his or her actual bonus and the termination event or change in control would not have triggered a payment. | | | | 4 | No NEOs held Long-Term Incentive Plan awards in 2020. |
82 | PVH on the last day of the applicable performance cycle in order to remain eligible to receive a bonus under our Performance Incentive Bonus Plan. Therefore, if a termination of employment or change in control had occurred on February 3, 2019, each NEO would have been entitled to receive his actual bonus and the termination event or change in control would not have triggered a payment.
4
GRIP awards under our Long-Term Incentive Plan were granted to Messrs. Duane, Grieder and Shiffman in 2017. In the event of death or a change in control, the amounts are based on the amounts that would otherwise have been payable if the target level of performance had been achieved. In the event of disability or termination without cause or for good reason, the amounts will be paid based on actual performance. However, as actual performance is not yet known, the amounts are shown at the target level. In the event of death, disability and termination without cause or for good reason, the amounts payable are prorated 67%, representing the portion of the relevant performance cycle actually worked by each NEO as of February 3, 2019.
5
Represents the value of unexercisable “in the money” stock options outstanding as of February 3, 2019, the vesting of which would accelerate upon death, a change in control or retirement. The value is equal to the difference between the closing price of our common stock on February 1, 2019, the last business day of 2018, and the per share exercise price of each stock option that would become exercisable, multiplied by the number of shares of our common stock receivable upon exercise.
6
Represents the value of unvested restricted stock units as of February 3, 2019, the vesting of which would accelerate upon death, a change in control or retirement other than the RSUs granted to Mr. Duane in 2018. For Mr. Duane’s 2018 RSU award, in the event of voluntary termination or retirement, one-third of the award will vest and, in the event of termination without cause or for good reason, the award will vest in full. The value is equal to the closing price of our common stock on February 1, 2019, the last business day of 2018, multiplied by the number of shares of our common stock receivable upon vesting.
7
Represents the payout levels (discussed below) of the unvested PSUs as of February 3, 2019, multiplied by the closing price of our common stock on February 1, 2019, the last business day of 2018. In the event of death or a change in control, the amounts are shown based on the amounts that would otherwise have been payable for the performance cycle if the target level of performance had been achieved. In the event of disability or termination without cause or for good reason, the amounts are shown based on actual performance as of February 3, 2019, as the actual performance for the entire performance period was not known as of February 3, 2019. In the event of death, disability, termination without cause or for good reason, and change in control, the amounts payable in respect of the PSU awards granted during 2016, 2017 and 2018 are prorated 92%, 58% and 25%, respectively, representing the portion of the relevant performance cycle actually worked by our NEOs as of February 3, 2019.
8
Messrs. Chirico and Duane are our only Named Executive Officers who are parties to agreements with us under our capital accumulation program. See discussion on pages 66–67. All benefits, other than the payment to be made in connection with a change in control, are paid monthly over a 10-year period. The payouts shown include, where applicable, the interest that participants receive on the vested portion of their benefit for the period after the date on which they are scheduled to fully vest until payment. For Messrs. Chirico and Duane, interest is assumed to accrue at the average 10-year Treasury bill rate applicable under their agreements. The total value of the 120 payments is discounted to present value using a rate of 4.35%.
The capital accumulation program agreements do not specifically provide for payment upon retirement or disability. The amounts shown in the retirement and disability columns represent the amounts payable, if any, upon voluntary termination of employment.
We do not have any obligation to make payments to Messrs. Chirico or Duane in the event employment terminates for cause. The amounts shown in the Termination Without Cause or for Good Reason Upon Change in Control column represent a lump sum payment for the full benefit for each of Messrs. Chirico and Duane.
Payments will be delayed if and to the extent payment within six months of the termination of employment will result in the imposition of additional taxes on the participant pursuant to Section 409A of the Code. Payments delayed due to the regulations promulgated under Section 409A will accrue interest during the deferral period at a rate equal to the average of the 10-year Treasury bill rates in effect on the first day of each calendar month during the delay period.
CORP. 2021 PROXY STATEMENT | | 70 | | | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | |
EXECUTIVE COMPENSATION TABLES POTENTIAL PAYMENTS UPON TERMINATION AND CHANGE IN CONTROL PROVISIONS | 5 | Represents the value of unexercisable “in the money” stock options outstanding as of January 31, 2021, the vesting of which would accelerate upon death, disability, a change in control or retirement. In addition, if Mr. Chirico had terminated for any reason other than death or for cause, such termination would have been treated as his retirement. Therefore, Mr. Chirico’s unexercised stock options would have been subject to accelerated vesting under voluntary termination and termination without cause or for good reason. The value is equal to the difference between the closing price of our common stock on January 29, 2021, the last business day of 2020, and the per share exercise price of each stock option that would become exercisable, multiplied by the number of shares of our common stock receivable upon exercise. | | | | 6 | Represents the value of unvested restricted stock units as of January 31, 2021, the vesting of which would accelerate upon death, disability, a termination of employment without cause or for good reason after a change in control, or retirement. In addition, if Mr. Chirico had terminated for any reason other than death or for cause, such termination would have been treated as his retirement. Therefore, Mr. Chirico’s unvested RSU awards would have been subject to accelerated vesting under voluntary termination and termination without cause or for good reason. See pages 65-69 for details of the employment agreements. The value is equal to the closing price of our common stock on January 29, 2021, the last business day of 2020, multiplied by the number of shares of our common stock receivable upon vesting. | | | | 7 | Represents the payout levels (discussed below) of the unvested PSUs as of January 31, 2021 multiplied by the closing price of our common stock on January 29, 2021, the last business day of 2020. In the event of death or a change in control, the amounts are shown based on the amounts that would otherwise have been payable for the performance cycle if the target level of performance had been achieved. In the event of retirement, disability or termination without cause or for good reason, the amounts are shown based on actual performance as of January 31, 2021, as the actual performance for the entire performance period was not known as of January 31, 2021. In the event of death, disability, termination without cause or for good reason, and change in control, the amounts payable in respect of the PSU awards granted during 2018, 2019, April 2020 and September 2020 are prorated 92%, 58%, 25% and 13%, respectively, representing the portion of the relevant performance cycle actually worked by our NEOs as of January 31, 2021. In addition, if Mr. Chirico had terminated for any reason other than death or for cause, such termination would have been treated as his retirement. Therefore, Mr. Chirico’s unvested PSU awards would have been subject to accelerated vesting under voluntary termination and termination without cause or for good reason. | | | | 8 | Mr. Chirico is the only Named Executive Officer who is party to an agreement with us under our capital accumulation program. See discussion on page 79. All benefits, other than the payment to be made in connection with a change in control, are paid monthly over a 10-year period. The payout shown includes the interest that Mr. Chirico would receive on the vested portion of his benefit for the period. Interest is assumed to begin accruing on the date (May 8, 2012) that he turned 55 and continues to accrue until payment. Interest is assumed to accrue at the average 10-year Treasury bill rate applicable under his agreement. The total value shown of the 120 payments is discounted to a present value using a rate of 3.04%. | | | | The capital accumulation program agreements do not specifically provide for payment upon retirement or disability. The amounts shown in the retirement and disability columns represent the amounts payable, if any, upon voluntary termination of employment. | | | | We do not have any obligation to make payments to Mr. Chirico in the event employment terminates for cause. The amounts shown in the Termination Without Cause or for Good Reason Upon Change in Control column represent a lump sum payment for the full benefit. | | | | Payments will be delayed if and to the extent payment within six months of the termination of employment would result in the imposition of additional taxes on the participant pursuant to Section 409A of the Code. Payments delayed pursuant to Section 409A will accrue interest during the deferral period at a rate per annum, equal to the average of the 10-year Treasury bill rate in effect on the first day of each calendar month during the delay period. | | | | 9 | The amounts shown represent the cost of welfare benefits, including medical, dental, life and disability coverage, that our NEOs would have received under their employment agreements if their employment had been terminated without cause or for good reason on January 31, 2021. Such benefits are not receivable if their employment is terminated for any other reason. Those benefits would continue for two years for Mr. Chirico, Mr. Larsson and Ms. Abel-Hodges and one and one half years for Mr. Shaffer, other than if the termination occurred within two years after a change in control. Those benefits would continue for three years for Mr. Chirico and two years for Ms. Abel-Hodges and Messrs. Shaffer and Larsson, if the termination occurred within two years after a change in control. | | | | 10 | If any of our U.S.-based NEOs would become subject to the Federal excise tax on excess parachute payments under Section 4999 of the Code because of the amount of the executive’s termination payments under a change in control, then such termination payments will be reduced as necessary to maximize each NEO’s respective after-tax termination payout. It is projected that only Ms. Abel-Hodges would have had such a payment reduction if a termination upon a change in control had occurred on January 31, 2021. | | | | 11 | Potential severance payments upon termination for Mr. Hagman have been translated at the euro-to-U.S. dollar exchange rate of 1.2136, which was the closing rate on January 29, 2021, the last business day of 2020. |
PVH CORP. 2021 PROXY STATEMENT | 83 CEO Pay RatioMethodology 9
The amounts shown represent the cost of welfare benefits, including medical, dental, life and disability coverage, that our NEOs would have received under their employment agreements if their employment had been terminated without cause or for good reason on February 3, 2019. Such benefits are not receivable if their employment is terminated for any other reason. Those benefits would continue for Mr. Duane through the end of his contract term. Those benefits would continue for two years for Mr. Chirico, one and one-half years for Mr. Shaffer, and one year for Mr. Shiffman, other than if the termination occurred within two years after a change in control, in which case benefits would continue for three years for Mr. Chirico and two years for Messrs. Shaffer and Shiffman.
10
If any of our U.S.-based NEOs would become subject to the Federal excise tax on excess parachute payments under Section 4999 of the Code as a result of the amount of his termination payments under a change in control, then such termination payments would be reduced as necessary to maximize each NEO’s respective after-tax termination payout. It is projected that none of our NEOs would have been subject to such excise taxes if they had been terminated following a change in control as of February 3, 2019.
11
Potential severance and incentive payments upon termination for Mr. Grieder have been translated at the euro-to-U.S. dollar exchange rate of 1.1471, which was the closing rate on February 1, 2019, the last business day of 2018.
We are required to provide the ratio for the annual total compensation paid to Mr. Chirico, ourthe Chief Executive Officer in 2020, to the annual total compensation of our median associate, excluding Mr. Chirico’s compensation. SEC rules permit us to use the same median associate identified in our pay ratio disclosure for 2017,2019, subject to certain exceptions. In our case, the median associate had a significant change in circumstance and, as a result, we determined that it is not appropriate to use the same associate for this year’s disclosure. We did not otherwise have a significant change in our associate population or compensation arrangements. We selected November 5, 20182020 as the determination date for identifying our median associate. As of that date, we had 37,26834,855 associates, with 17,25314,001 associates based in the United States and 20,01520,854 associates located outside of the United States. Of these associates, 9,582approximately 25% worked in or were assigned to offices, 25,493approximately 67% worked in retail stores and 2,193approximately 8% worked in warehousing and distribution facilities. Approximately 44%42% of our workforce is part-time. Our use of seasonal workers is not significant to our overall population and is largelywas particularly limited toin 2020 as a result of the Christmas and Lunar (Chinese) New Year selling periods.COVID-19 pandemic. We do not use a significant number of temporary associates. Methodology
METHODOLOGY The methodology and the material assumptions, adjustments and estimates that we used to identify the median of the annual total compensation of all our associates, as well as to determine the annual total compensation of the median associate for purposes of this disclosure were as follows: ■
We identified the median associate by using the actual earnings of our full-time, part-time, seasonal and temporary associates, which consisted of base pay, overtime, compensation and bonus, as compiled from our payroll records.
–
We measured associate earnings using the one-year period ended October 31, 2018.
–
Compensation paid in foreign currencies was converted to U.S. dollars using the foreign exchange rate monthly average for October 2018.
■
The pay ratio disclosure rules provide a de minimis exemption that allows for the exclusion of non-U.S. associates constituting less than 5% of our total associate population from the calculation.
–
Specifically, we excluded all 660 associates in Brazil, 83 associates in Malaysia, 442 associates in Poland, 324 associates in Russia and 295 associates in Turkey who were employed on November 5, 2018.
–
After applying this exemption, 17,253 associates in the United States and 18,211 outside of the United States were considered to identify the median associate.
Calculation
| ◾ | We identified the median associate by using the actual earnings of our full-time, part-time, seasonal and temporary associates, which consisted of cash compensation, as compiled from our payroll records. | | | | ◾ | We measured associate earnings using the one-year period ended October 31, 2020. | | | | ◾ | Compensation paid in foreign currencies was converted to U.S. dollars using the foreign exchange rate monthly average for December 2020. | | | | ◾ | The pay ratio disclosure rules provide a de minimis exemption that allows for the exclusion of non-U.S. associates constituting less than 5% of our total associate population from the calculation. |
| • | Specifically, we excluded all 533 associates in Brazil, 439 associates in Poland, 425 associates in Russia and 336 associates in Turkey who were employed on November 5, 2020. | | | | | • | After applying this exemption, 14,001 associates in the United States and 19,121 outside of the United States were considered to identify the median associate. |
CALCULATION We determined that our median associate was a part-time,full-time, hourly retail store lead cashiersales associate who works in Suffolk County,Woodbury, New York, United States. The 20182020 annual total compensation for our median associate was $18,089.$22,337. The 2018retail store where the median associate worked in Woodbury, NY was closed for the period March 17, 2020 through June 7, 2020 due to the COVID-19 pandemic. The median associate continued to receive compensation although that individual did not provide any services for the period March 16, 2020 through April 12, 2020. The median associate was subsequently on unpaid furlough for the period from April 13, 2020 to June 7, 2020 and did not receive any compensation from the company but was eligible to receive unemployment benefits from the government during this period; the median associate was, however, on the company’s medical plan and the company did pay the employer and employee costs for this medical benefit during this period of unpaid furlough. The 2020 annual total compensation as determined under Item 402 of Regulation S-K for our CEO was $17,065,604.$16,408,935. Mr. Chirico did not receive any salary for the period from April 16, 2020 to July 15, 2020. The estimated ratio of our CEO’s annual total compensation to our median associate’s total compensation for fiscal year 20182020 is 943735 to 1. 84 | PVH CORP. 2021 PROXY STATEMENT | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | | | 71 | | |
AmendmentEquity Compensation Plan InformationThe following table provides information as of January 31, 2021 with respect to Our Certificate of Incorporation to Eliminate the Supermajority Voting Requirement for Certain Transactions Our Certificate of Incorporation provides that certain transactions between PVH and a beneficial owner of more than 5%shares of our common stock (a “5% Stockholder”) mustthat may be approved by a vote of 80% of our outstanding common stock unless (i) the transaction is approved by the Board of Directors before such person became a 5% Stockholder or (ii) we beneficially own a majority of the outstanding stock entitled to vote in elections of directors of such 5% Stockholder. The transactions covered by the provision are certain business combinations, transfers of our assets and issuances of our securities.
The proposed amendment eliminates that provision from our Certificate of Incorporation.
After a review of governance practices and current protections offered by the Delaware General Corporation Law, the Board has determined that eliminating this supermajority voting provision is appropriate for three reasons. First, it is considered by many governance commentators, stockholder rights advocates and stockholders to be a best practice in corporate governance not to have supermajority voting requirements. Second, the provision does not provide a substantive enhancement to our takeover defense profile. Third, we will continue to be subject to, and benefit from, Section 203 of the Delaware General Corporation Law, which provides protections similar to those that the provision provides.
| | | | The Board of Directors recommends a vote FOR the amendment to our Certificate of Incorporation to eliminate the supermajority voting requirement for certain transactions. | |
Proxies received in response to this solicitation will be voted FOR this proposal unless otherwise specified in a proxy.
If stockholders approve this proposal, we will file an Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware that eliminates the current provisions of Article Sixth of our Certificate of Incorporation, which encompasses the supermajority provision that is the subject of this proposal. The proposed Amended and Restated Certificate of Incorporation is attached as Exhibit C to this Proxy Statement.
We decided to create an Amended and Restated Certificate of Incorporation (rather than a simple amendment toissued under our existing Certificate of Incorporation) because there have been many amendments toequity compensation plan — our Certificate of Incorporation over time, many of which are no longer relevant (such as merger documents and certificates of designation and cancellation of classes of preferred stock) and only serve to make our Certificate of Incorporation a large and unwieldy document. If we create an Amended and Restated Certificate of Incorporation reflecting all amendments, the Certificate will consist of a single document that stockholders can easily read and understand.
Stock Incentive Plan. The affirmative vote of not less than 80% of our outstanding common stock is required to approve this proposal. As a result, an abstention or failure to vote with regard to this proposal will have the same effect as a vote against it. | | 72 | | | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | |
Amendment to Our Certificate of Incorporation to Eliminate the Supermajority Voting Requirement for By-Law Amendments
Our Certificate of Incorporation provides that our By-Laws may not be adopted, altered, amended, changed or repealedplan was approved by our stockholders exceptand we have no equity compensation plans that were not approved by the affirmative vote of not less than 80% of our outstanding stock entitled to vote in the election of directors. The ability of stockholders to amend our By-Laws is separate from the ability of the Board of Directors to amend our By-Laws, which does not require stockholder approval.
The proposed amendment to our Certificate of Incorporation would reduce the voting requirement for stockholders to amend the By-Laws to a majority vote of our outstanding stock entitled to vote in the election of directors. As noted in the previous proposal, it is considered by many governance commentators, stockholder rights advocates and stockholders to be a best practice in corporate governance not to have supermajority voting requirements. Further, the provision serves no purpose to protect the interests of PVH or our stockholders.
If stockholders approve this proposal, we will file an Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware incorporating this amendment, which amends what is currently Article Seventh of our Certificate of Incorporation. We also will amend our By-Laws to conform to this amendment. The proposed Amended and Restated Certificate of Incorporation is attached as Exhibit C to this Proxy Statement. The changes to what Exhibit C shows as new Article Sixth are the changes to be made if this proposal is approved.
| | Number of securities to
be issued upon exercise
of outstanding options,
warrants, and rights | | Weighted average
exercise price of
outstanding options,
warrants and rights | | Number of securities remaining
available for future issuance under
equity compensation plans (excluding
securities reflected in Column (a)) | | Name | (a) | | (b) | | (c) | | Equity Compensation Plans Approved by Security Holders | 2,971,5021 | | $40.412 | | 4,819,434 | | Equity Compensation Plans Not Approved by Security Holders | – | | – | | – | | Total | 2,971,502 | | $40.41 | | 4,819,434 |
| 1 | Consists of (a) 1,470,253 shares of common stock underlying restricted stock units, (b) 473,569 shares of common stock underlying performance share units and (c) 1,027,680 shares of common stock underlying stock options. | | | | 2 | The weighted average exercise price does not take into account performance shares, but does include restricted stock units. Excluding the restricted stock units, which have no exercise price, the weighted average exercise price is $98.23. |
PVH CORP. 2021 PROXY STATEMENT | 85 | | | | The Board of Directors recommends a vote FOR the amendment to our Certificate of Incorporation to eliminate the supermajority voting requirement for By-Law amendments. | |
Proxies received in response to this solicitation will be voted FOR this proposal unless otherwise specified in a proxy.
We decided to create an Amended and Restated Certificate of Incorporation (rather than a simple amendment to our existing Certificate of Incorporation) because there have been many amendments to our Certificate of Incorporation over time, many of which are no longer relevant (such as merger documents and certificates of designation and cancellation of classes of preferred stock) and only serve to make our Certificate of Incorporation a large and unwieldy document. If we create an Amended and Restated Certificate of Incorporation reflecting all amendments, the Certificate will consist of a single document that stockholders can easily read and understand.
The affirmative vote of not less than 80% of our outstanding common stock is required to approve this proposal. As a result, an abstention or failure to vote with regard to this proposal will have the same effect as a vote against it.
| | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | | | 73 | | |
PROPOSAL 3Ratification of the Appointment of Auditor TheAs a matter of good corporate governance, the Board of Directors considers it desirable for ouris asking stockholders to pass uponratify the selection of the independent auditor although stockholdereven though such ratification of the Audit & Risk Management Committee’s selection is not required. If theour stockholders disapprove of the selection, the Board will requestask the Audit & Risk Management Committee to reconsider the selection for the fiscal year ending January 31, 2021,29, 2023, as it would be impracticable to replace our auditors so late intoin our current fiscal year. The Audit & Risk Management Committee is directly responsible for the appointment, compensation and oversight of the work of the independent auditor pursuant to its charter.auditor. The Committee has selected Ernst & Young LLP, independent auditors, as our auditors for the fiscal year ending February 2, 2020.January 30, 2022. Ernst & Young LLP or one of its predecessors has served continuously as our auditors since 1938. The Committee ChairmanChair is actively involved and consults with other members of the Committee regarding the appointment of Ernst & Young LLP’s lead engagement partner. The Committee and the Board believe the continued retention of Ernst & Young LLP to serve as our auditors is in our best interest and the best interests of PVH and our stockholders. We expect representatives of Ernst & Young LLP to attend the meeting. Those individuals will have the opportunity to make a statement if they wish and will be available to respond to appropriate questions from stockholders. | |  | | The Board of Directors recommends a vote FOR the ratification of the appointment of the auditors. | |
Proxies received in response to this solicitation will be voted FOR the ratification of the appointment of the auditors unless otherwise specified in a proxy.
Fees Paid to Auditors
FEES PAID TO AUDITORS The following table sets forth the aggregate fees billed by Ernst & Young LLP, the member firms of Ernst & Young LLP, and their respective affiliates for professional services rendered to us for the audit of our annual financial statements for the fiscal years ended February 3, 2019,January 31, 2021, and February 4, 2018,2, 2020, for the reviews of the financial statements included in our Quarterly Reports on Form 10-Q for those fiscal years, and for other services rendered on our behalf during those fiscal years. All of such fees were pre-approved by the Audit & Risk Management Committee. | | | | 2018 | | | 2017 | | | Audit Fees1 | | | | $ | 6,340,000 | | | | | $ | 5,970,000 | | | | Audit-Related Fees2 | | | | $ | 108,000 | | | | | $ | 96,400 | | | | Tax Fees3 | | | | $ | 2,260,000 | | | | | $ | 2,232,000 | | | | All Other Fees | | | | $ | — | | | | | $ | — | | |
1
Consists of fees for professional services performed for the audit of our annual financial statements, the audit of internal control over financial reporting in conjunction with the audit of our annual consolidated financial statements, and reviews of financial statements included in our Quarterly Reports on Form 10-Q. Audit fees also include services that are normally provided in connection with statutory filing requirements.
2
Includes fees that are related to accounting consultations concerning financial accounting and reporting standards and certain attestation services related to financial reporting.
3
Includes fees for services to assist us in the preparation of our tax returns and for the provision of tax advice. Such fees include tax compliance fees of $545,000 in 2018 and $585,000 in 2017.
| | 2020 | 2019 | | | ($) | ($) | | Audit Fees1 | 7,426,000 | 7,007,000 | | Audit-Related Fees2 | 340,000 | 148,000 | | Tax Fees3 | 2,991,000 | 2,982,000 | | All Other Fees | — | — |
| 1 | Consists of fees for professional services performed for the audit of our annual financial statements, the audit of internal control over financial reporting in conjunction with the audit of our annual consolidated financial statements, and reviews of financial statements included in our Quarterly Reports on Form 10-Q. Audit fees also include services that are normally provided in connection with statutory filing requirements. | | | | 2 | Includes fees that are related to accounting consultations concerning financial accounting and reporting standards and certain attestation services related to financial reporting. | | | | 3 | Includes fees for services to assist us in the preparation of our tax returns and for the provision of tax advice. Such fees include tax compliance fees of $1,092,000 in 2020 and $653,000 in 2019. |
The Audit & Risk Management Committee’s charter requires it to pre-approve at its meetings all audit and non-audit services provided by our outside auditors. The charter permits the Committee to delegate to any one or more of its members the authority to grant such pre-approvals. Any such delegation of authority may be subject to any rules or limitations the members deem appropriate. TheA member’s decision to pre-approve any services made by any member to whomusing such delegated authority has been so delegated must be presented to the full Committee at its next meeting. 86 | PVH CORP. 2021 PROXY STATEMENT | | 74 | | | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | |
Audit Committee Report PVH management has the primary responsibility for the financial statements and the reporting process, including the system of internal controls. The independent auditors audit the financial statements and express an opinion on the financial statements based on their audit. The Audit & Risk Management Committee is directly responsible for the appointment, compensation and oversight of the independent auditors, and reviews PVH’s financial reporting process on behalf of the Board of Directors. The Audit & Risk Management Committee, in evaluating and selecting the independent auditors, considers, among other things, external data on the audit quality of the audit firm, including recent Public Company Accounting Oversight Board (“PCAOB”) reports; the audit firm’s industry experience, capabilities, and approach in handling the breadth and complexity of PVH’s global operations; the quality and consistency of the audit firm’s personnel and communication; the appropriateness of the audit firm’s fees; and the independence and objectivity of the audit firm. As part of its oversight of PVH’s financial statements and reporting process, the Committee has met and held discussions with management, internal auditing staff and Ernst & Young LLP, the independent auditors. Management represented to the Committee that the consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States, and the Committee has reviewed and discussed the audited consolidated financial statements with management and the independent auditors. The Committee discussed with the independent auditors matters required to be discussed by the applicable requirements of the PCAOB Auditing Standard No. 1301, Communications with Audit Committees. and the SEC.In addition, the Committee has received the written disclosures and the letter from the independent auditors required by applicable requirements of the PCAOB regarding the independent auditors’ communications with the Committee concerning independence, and has discussed with the independent auditors the auditors’ independence from PVH and PVH management. The Committee also has considered whether the independent auditors’ provision of non-audit services to PVH is compatible with the auditors’ independence. The Committee discussed with the internal and independent auditors the overall scope and plans for their respective audits. It meets with the internal and independent auditors, with and without management present, to discuss the results of their examinations, the evaluations of PVH’s internal controls, and the overall quality of PVH’s financial reporting. In reliance on the reviews and discussions referred to above, the Committee recommended to the Board the inclusion of the audited consolidated financial statements in PVH’s Annual Report on Form 10-K for the year ended February 3, 2019,January 31, 2021, as filed with the SEC. The Committee also has recommended stockholder ratification of the selection of the independent auditors. The members of the Committee reviewed and met with management and the independent auditors on a quarterly basis to discuss PVH’s earnings releases and, as applicable, itsPVH’s Quarterly Reports on Form 10-Q and Annual Report on Form 10-K. The Committee also reviews and meets, when needed, in conjunction with earnings guidance issued other than in quarterly earnings releases. Audit & Risk Management Committee JuanEdward R. Figuereo, Chairman
Rosenfeld, Chair V. James Marino
Amy McPherson
Edward R. Rosenfeld PVH CORP. 2021 PROXY STATEMENT | 87 | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | | | 75 | | |
Equity Compensation Plan Information
The following table provides information as of February 3, 2019, with respect to shares of our common stock that may be issued under our existing equity compensation plan — the 2006 Stock Incentive Plan. This plan was approved by our stockholders; we have no equity compensation plans that were not approved by our stockholders.
| Plan category | | | Number of securities to be
issued upon exercise of
outstanding options,
warrants, and rights
(a) | | | Weighted average
exercise price of
outstanding options,
warrants and rights
(b) | | | Number of securities remaining
available for future issuance
under equity compensation
plans (excluding securities
reflected in Column (a))
(c) | | Equity compensation plans
approved by security holders | | | | | 2,026,1401 | | | | | $ | 52.012 | | | | | | 5,112,005 | | | Equity compensation plans not
approved by security holders | | | | | — | | | | | | — | | | | | | — | | | | Total | | | | | 2,026,140 | | | | | $ | 52.01 | | | | | | 5,112,005 | | |
1
Consists of (a) 848,224 shares of common stock underlying restricted stock units, (b) 387,229 shares of common stock underlying performance share units and (c) 790,687 shares of common stock underlying stock options.
2
The weighted average exercise price does not take into account performance shares, but does include restricted stock units. Excluding the restricted stock units, which have no exercise price, the weighted average exercise price is $107.81.
| | 76 | | | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | |
Security Ownership of Certain Beneficial Owners and Management 5% Stockholders Security Ownership of Certain Beneficial Owners and Management 5% STOCKHOLDERS The following table presents certain information with respect to the persons who are known by us to be the beneficial owners of more than five percent of our common stock as of the record date for the meeting. The persons listed below have advised us that they have sole voting and investment power with respect to the shares listed as owned by them, except as otherwise indicated. | Name and Address of Beneficial Owner | | | Amount
Beneficially Owned | | | Percent of Class | | FMR LLC1
245 Summer Street
Boston, MA 02210 | | | | | 8,286,655 | | | | | | 11.0 | | | The Vanguard Group, Inc.2
100 Vanguard Blvd.
Malvern, PA 19355 | | | | | 8,075,969 | | | | | | 10.8 | | | JPMorgan Chase & Co.3
270 Park Avenue
New York, NY 10017 | | | | | 6,921,010 | | | | | | 9.2 | | | BlackRock, Inc.4
55 East 52nd Street
New York, NY 10055 | | | | | 5,104,773 | | | | | | 6.8 | | |
1
FMR LLC, a parent holding company or control person in accordance with Exchange Act Rule 13d-1(b)(1)(ii)G), is the beneficial owner of 8,286,655 shares of our common stock, including 494,231 shares with respect to which it has sole voting power and as to all 8,286,655 of which it has sole dispositive power. Abigail P. Johnson, a Director, the Chairman and the Chief Executive Officer of FMR LLC, has the sole power to dispose of these 8,286,655 shares. Members of the Johnson family, including Abigail P. Johnson, are the predominant owners, directly or through trusts, of Series B voting common shares of FMR LLC, representing 49% of the voting power of FMR LLC. The Johnson family group and all other Series B shareholders have entered into a shareholders’ voting agreement under which all Series B voting common shares will be voted in accordance with the majority vote of Series B voting common shares. Accordingly, through their ownership of voting common shares and the execution of the shareholders’ voting agreement, members of the Johnson family may be deemed, under the Investment Company Act of 1940, to form a controlling group with respect to FMR LLC. Neither FMR LLC nor Abigail P. Johnson has the sole power to vote or direct the voting of the shares owned directly by the various investment companies registered under the Investment Company Act (the “Fidelity Funds”) advised by Fidelity Management & Research Company (“FMR Co”), a wholly-owned subsidiary of FMR LLC, which power resides with the Fidelity Funds’ Boards of Trustees. FMR Co carries out the voting of the shares under written guidelines established by the Fidelity Funds’ Boards of Trustees. The above ownership reflects the securities beneficially owned, or that may be deemed to be beneficially owned, by FMR LLC, certain of its subsidiaries and affiliates, and other companies (collectively, the “FMR Reporters”). The following entities own shares included in the above ownership: FIAM LLC, an investment advisor registered under Section 203 of the Investment Advisors Act of 1940, FMR Co, an investment advisor registered under Section 203 of the Investment Advisers Act of 1940; Fidelity Institutional Asset Management Trust Company, a bank as defined in Section 3(a)(6) of the Exchange Act; FMR CO., INC, an investment adviser registered under Section 203 of the Investment Advisers Act of 1940; and Strategic Advisers, Inc., an investment adviser registered under Section 203 of the Investment Advisers Act of 1940. The above ownership does not reflect securities, if any, beneficially owned by certain other companies whose beneficial ownership of securities is disaggregated from that of the FMR Reporters in accordance with SEC Release No. 34-39538 (January 12, 1998). Information (other than percentage ownership) reported on the table and in this footnote is as of January 31, 2019, and is based on the Statement of Beneficial Ownership on Schedule 13G/A filed by FMR LLC on February 11, 2019, with the SEC.
2
The Vanguard Group, Inc. (“Vanguard”), an investment adviser in accordance with Exchange Act Rule 13d-1(b)(1)(ii)(E), may be deemed to be the beneficial owner of 8,075,969 shares of our common stock, including 86,897 shares with respect to which it has sole voting power, 15,733 shares with respect to which it has shared voting power, 7,973,890 shares of which it has sole dispositive power and 102,079 shares of which it has shared dispositive power. These amounts include the beneficial ownership by Vanguard Fiduciary Trust Company, a wholly-owned subsidiary of Vanguard, of 62,705 shares as a result of its serving as investment manager of collective trust accounts, and the beneficial ownership by Vanguard Investments Australia, Ltd., a wholly-owned subsidiary of Vanguard, of 62,625 shares as a result of its serving as investment manager of Australian investment offerings. Information (other than percentage ownership) reported on the table and in this footnote is as of December 31, 2018, and is based on the Statement of Beneficial Ownership on Schedule 13G/A filed by Vanguard on February 12, 2019, with the SEC.
3
JPMorgan Chase & Co., a parent holding company or control person in accordance with Exchange Act Rule 13d-1(b)(1)(ii)(G), may be deemed to be the beneficial owner of 6,921,010 shares of our common stock, including 6,108,823 shares with respect to which it has sole voting power, 6,400 shares with respect to which it has shared voting power, 6,911,973 shares with respect to which it has sole dispositive power and 3,519 shares with respect to which it has shared dispositive power. Information (other than percentage ownership) reported on the table and in this footnote is as of December 31, 2018, and is based on the Statement of Beneficial Ownership on Schedule 13G/A filed by JPMorgan Chase & Co. on January 25, 2019, with the SEC.
4
BlackRock, Inc., a parent holding company or control person in accordance with Exchange Act Rule 13d-1(b)(1)(ii)(G), may be deemed to be the beneficial owner of 5,104,773 shares of our common stock, including 4,347,809 shares with respect to which it has sole voting power and as to all 5,104,773 of which it has sole dispositive power. Information (other than percentage ownership) reported on the table and in this footnote is as of December 31, 2018, and is based on the Statement of Beneficial Ownership on Schedule 13G/A filed by BlackRock, Inc. on February 6, 2019, with the SEC.
| Name and Address of Beneficial Owner | Amount Beneficially Owned | Percent of Class | | FMR LLC1 | 10,490,281 | 14.7 | | 245 Summer Street | | | | Boston, MA 02210 | | | | THE VANGUARD GROUP2 | 7,401,846 | 10.4 | | 100 Vanguard Blvd. | | | | Malvern, PA 19355 | | | | PZENA INVESTMENT MANAGEMENT, LLC3 | 7,375,531 | 10.3 | | 320 Park Avenue, 8th Floor | | | | New York, NY 10022 | | | | WELLINGTON MANAGEMENT GROUP LLP4 | 5,824,256 | 8.2 | | 280 Congress Street | | | | Boston, MA 02210 | | | | BLACKROCK, INC.5 | 3,991,748 | 5.6 | | 55 East 52nd Street | | | | New York, NY 10055 | | |
| 1 | FMR LLC, a parent holding company or control person in accordance with Exchange Act Rule 13d-1(b)(1)(ii)G), is the beneficial owner of 10,490,281 shares of our common stock, including 634,982 shares with respect to which it has sole voting power and as to all 10,490,281 of which it has sole dispositive power. Abigail P. Johnson, a Director, the Chairman and the Chief Executive Officer of FMR LLC, has the sole power to dispose of these 10,490,281 shares. Members of the Johnson family, including Abigail P. Johnson, are the predominant owners, directly or through trusts, of Series B voting common shares of FMR LLC, representing 49% of the voting power of FMR LLC. The Johnson family group and all other Series B shareholders have entered into a shareholders’ voting agreement under which all Series B voting common shares will be voted in accordance with the majority vote of Series B voting common shares. Accordingly, through their ownership of voting common shares and the execution of the shareholders’ voting agreement, members of the Johnson family may be deemed, under the Investment Company Act of 1940, to form a controlling group with respect to FMR LLC. Neither FMR LLC nor Abigail P. Johnson has the sole power to vote or direct the voting of the shares owned directly by the various investment companies registered under the Investment Company Act (the “Fidelity Funds”) advised by Fidelity Management & Research Company LLC (“FMR Co. LLC”), a wholly-owned subsidiary of FMR LLC, which power resides with the Fidelity Funds’ Boards of Trustees. FMR Co. LLC carries out the voting of the shares under written guidelines established by the Fidelity Funds’ Boards of Trustees. The above ownership reflects the securities beneficially owned, or that may be deemed to be beneficially owned, by FMR LLC, certain of its subsidiaries and affiliates, and other companies (collectively, the “FMR Reporters”). The following entities own shares included in the above ownership: FIAM LLC, an investment advisor registered under Section 203 of the Investment Advisors Act of 1940; Fidelity Institutional Asset Management Trust Company, a bank as defined in Section 3(a)(6) of the Exchange Act; FMR Co. LLC, an investment advisor registered under Section 203 of the Investment Advisers Act of 1940; and Strategic Advisers, Inc., an investment adviser registered under Section 203 of the Investment Advisers Act of 1940. The above ownership does not reflect securities, if any, beneficially owned by certain other companies whose beneficial ownership of securities is disaggregated from that of the FMR Reporters in accordance with SEC Release No. 34-39538 (January 12, 1998). Information (other than percentage ownership) reported on the table and in this footnote is as of December 31, 2020, and is based on the Statement of Beneficial Ownership on Schedule 13G/A filed by FMR LLC on February 8, 2021, with the SEC. | | | | 2 | The Vanguard Group, Inc. (“Vanguard”), an investment adviser in accordance with Exchange Act Rule 13d-1(b)(1)(ii)(E), may be deemed to be the beneficial owner of 7,401,846 shares of our common stock, including 95,802 shares with respect to which it has shared voting power, 7,148,777 shares of which it has sole dispositive power and 253,069 shares of which it has shared dispositive power. These amounts include the beneficial ownership by the following wholly-owned subsidiaries of Vanguard: Vanguard Asset Management, Limited; Vanguard Fiduciary Trust Company; Vanguard Global Advisors, LLC; Vanguard Group (Ireland) Limited; Vanguard Investments Australia Ltd; Vanguard Investments Canada Inc.; Vanguard Investments Hong Kong Limited; and Vanguard Investments UK, Limited. Information (other than percentage ownership) reported on the table and in this footnote is as of December 31, 2020, and is based on the Statement of Beneficial Ownership on Schedule 13G/A filed by Vanguard on February 10, 2021, with the SEC. |
88 | PVH CORP. 2021 PROXY STATEMENT | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | | | 77 | | |
Security Ownership of Certain Beneficial Owners and Management5% Stockholders | 3 | Pzena Investment Management, LLC (“Pzena”), an investment adviser registered under section 203 of the Investment Advisers Act, may be deemed to be the beneficial owner of 7,375,531 shares of our common stock, including 6,576,568 shares with respect to which it has sole voting power and as to all 7,375,531 of which it has sole dispositive power. Information (other than percentage ownership) reported on the table and in this footnote is as of December 31, 2020, and is based on the Statement of Beneficial Ownership on Schedule 13G/A filed by Pzena on January 29, 2021, with the SEC. | | | | 4 | Each of Wellington Management Group LLP (“Wellington Management”), a parent holding company or control person in accordance with Exchange Act Rule 13d-1(b)(1) (ii)(G), Wellington Group Holdings LLP (“Wellington Holdings”), a parent holding company or control person in accordance with Exchange Act Rule 13d-1(b)(1)(ii)(G), and Wellington Investment Advisors Holdings LLP (“Wellington Investment”), a parent holding company or control person in accordance with Exchange Act Rule 13d-1(b)(1)(ii)(G), may be deemed to be the beneficial owner of 5,824,256 shares of our common stock, including 5,188,181 shares with respect to which it has shared voting power and as to all 5,824,256 of which it has shared dispositive power. Wellington Management Company LLP, an investment adviser in accordance with Exchange Act Rule 13d-1(b)(1)(ii) (E), may be deemed to be the beneficial owner of 5,502,533 shares of our common stock, including 4,969,053 shares with respect to which it has shared voting power and as to all 5,502,533 of which it has shared dispositive power. The shares included in the above ownership are owned of record by clients of the following investment advisers (the “Wellington Investment Advisers”): Wellington Management Company LLP; Wellington Management Canada LLC; Wellington Management Singapore Pte Ltd; Wellington Management Hong Kong Ltd; Wellington Management International Ltd; Wellington Management Japan Pte Ltd; and Wellington Management Australia Pty Ltd. Wellington Investment controls directly, or indirectly through Wellington Management Global Holdings, Ltd., the Wellington Investment Advisers. Wellington Investment is owned by Wellington Holdings. Wellington Holdings is owned by Wellington Management. Information (other than percentage ownership) reported on the table and in this footnote is as of December 31, 2020, and is based on the Statement of Beneficial Ownership on Schedule 13G/A filed by Wellington Management, Wellington Holdings, Wellington Investment and Wellington Management Company LLP on February 4, 2021, with the SEC. | | | | 5 | BlackRock, Inc., a parent holding company or control person in accordance with Exchange Act Rule 13d-1(b)(1)(ii)(G), may be deemed to be the beneficial owner of 3,991,748 shares of our common stock, including 3,592,765 shares with respect to which it has sole voting power and as to all 3,991,748 of which it has sole dispositive power. The following entities own shares included in the above ownership: BlackRock Life Limited; BlackRock International Limited; BlackRock Advisors, LLC; BlackRock (Netherlands) B.V.; BlackRock Institutional Trust Company, National Association; BlackRock Asset Management Ireland Limited; BlackRock Financial Management, Inc.; BlackRock Japan Co., Ltd.; BlackRock Asset Management Schweiz AG; BlackRock Investment Management, LLC; BlackRock Investment Management (UK) Limited; BlackRock Asset Management Canada Limited; BlackRock (Luxembourg) S.A.; BlackRock Investment Management (Australia) Limited; BlackRock Advisors (UK) Limited; BlackRock Fund Advisors; BlackRock Asset Management North Asia Limited; and BlackRock Fund Managers Ltd. Information (other than percentage ownership) reported on the table and in this footnote is as of December 31, 2020, and is based on the Statement of Beneficial Ownership on Schedule 13G/A filed by BlackRock, Inc. on January 29, 2021, with the SEC. |
PVH CORP. 2021 PROXY STATEMENT | 89 Security Ownership of Certain Beneficial Owners and Management Directors, Nominees for Director, and Executive Officers DIRECTORS, NOMINEES FOR DIRECTOR, AND EXECUTIVE OFFICERS The following table presents certain information with respect to the number of shares of our common stock beneficially owned as of the record date by the following persons: ■
Each of our directors
■
individuals:| ◾ | Each of our directors | | | | ◾ | Each of the nominees for director | | | | ◾ | Our Named Executive Officers | | | | ◾ | Our directors, the nominees for director, and our executive officers, as a group |
Each of the nominees for director
■
Our Named Executive Officers
■
Our directors, the nominees for director and our executive officers, as a group
Each of the personsindividuals named below has sole voting and investment power with respect to the shares listed as owned by him or her except as otherwise indicated below.
| | | | Amount
Beneficially Owned1 | | | Percent of Class | | | Mary Baglivo | | | | | 10,843 | | | | | | * | | | | Brent Callinicos | | | | | 6,170 | | | | | | * | | | | Emanuel Chirico | | | | | 510,417 | | | | | | * | | | | Francis K. Duane | | | | | 21,343 | | | | | | * | | | | Juan R. Figuereo | | | | | 10,905 | | | | | | * | | | | Joseph B. Fuller | | | | | 45,020 | | | | | | * | | | | Daniel Grieder | | | | | 35,893 | | | | | | * | | | | V. James Marino | | | | | 22,080 | | | | | | * | | | G. Penny McIntyre | | | | | 6,006 | | | | | | * | | | Amy McPherson | | | | | 2,313 | | | | | | * | | | | Henry Nasella | | | | | 22,080 | | | | | | * | | | | Edward R. Rosenfeld | | | | | 7,170 | | | | | | * | | | | Craig Rydin | | | | | 23,130 | | | | | | * | | | | Michael A. Shaffer | | | | | 50,809 | | | | | | * | | | | Steven B. Shiffman | | | | | 55,699 | | | | | | * | | | | Amanda Sourry | | | | | 2,313 | | | | | | * | | | | All directors, nominees for director and executive officers as a group (18 people) | | | | | 894,273 | | | | | | 1.2 | | |
*
Less than 1% of class.
1
The figures in the table are based upon information furnished to us by our directors, nominees for director, and executive officers and upon our records. The figures include the shares held for the benefit of our executive officers in a trust for the PVH Stock Fund. The PVH Stock Fund is one of the investment options under our Associates Investment Plan (AIP). Participants in the AIP who make investments in the PVH Stock Fund may direct the vote of shares of common stock held for their benefit in the trust for the PVH Stock Fund.
| | Amount Beneficially Owned1 | Percent of Class | | CHERYL ABEL-HODGES | 11,464 | * | | MARY BAGLIVO | 15,459 | * | | BRENT CALLINICOS | 9,710 | * | | GEORGE CHEEKS | 0 | – | | EMANUEL CHIRICO | 422,799 | * | | JOSEPH B. FULLER | 25,620 | * | | MARTIJN HAGMAN | 5,442 | * | | STEFAN LARSSON | 49,579 | * | | V. JAMES MARINO | 25,620 | * | | G. PENNY MCINTYRE | 9,546 | * | | AMY MCPHERSON | 5,853 | * | | HENRY NASELLA | 26,820 | * | | ALLISON PETERSON | 0 | – | | EDWARD R. ROSENFELD | 10,710 | * | | CRAIG RYDIN | 17,694 | * | | MICHAEL A. SHAFFER | 43,447 | * | | AMANDA SOURRY | 5,853 | * | | All Directors, Nominees For Director and Executive Officers as a Group (20 People) | 706,219 | 1.0% |
| * | Less than 1% of class. | | | | 1 | The figures in the table are based upon information furnished to us by our directors, nominees for director, and executive officers and upon our records. The figures include the shares held for the benefit of our executive officers in a trust for the PVH Stock Fund. The PVH Stock Fund is one of the investment options under our 401(k) plan. Participants in the AIP who make investments in the PVH Stock Fund may direct the vote of shares of common stock held for their benefit in the trust for the PVH Stock Fund. |
As of the record date, the following persons have the right to cast votes equal to the following number of shares held in the trust for the PVH Stock Fund (which have been rounded to the nearest full share): Emanuel Chirico, 9,514 shares; Francis K. Duane, 1,8589,742 shares; Michael A. Shaffer, 6,721 shares; Steven B. Shiffman, 1,9516,736 shares; and all of our directors, nominees for director and executive officers as a group, 20,74717,182 shares. The Trustee of the trust for the PVH Stock Fund has the right to vote shares in the trust that are unvoted as of two days prior to the meeting in the same proportion as the vote by all other participants in the AIP401(k) plan who have cast votes with respect to their investment in the Fund. The committee that administers the AIP401(k) plan makes all decisions regarding the disposition of common stock held in the trust for the Fund, other than the limited right of a participant to receive a distribution of shares held for his or her benefit. As such, the committee may be deemed to be a beneficial owner of the common stock held in the trust. Mr. Shaffer and an 90 | PVH CORP. 2021 PROXY STATEMENT Delinquent Section 16(a) Reports executive officer who is not an NEO are members of that committee. The figures in the table do not include shares in the trust for the Fund, other than those applicable to Mr. Shaffer’s and the other executive officer’s investment in the Fund, to the extent that, as members of the committee, | | 78 | | | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | |
Delinquent Section 16(a) Reports
they may be deemed to have beneficial ownership of the shares held in the trust. There were 415,103363,487 shares of common stock (0.6%(0.5% of the outstanding shares) held in the trust as of the record date. The table also includes the following shares which each of the individuals and the group listed on the table have the right to acquire within 60 days of the record date upon the exercise of stock options granted to them: Cheryl Abel-Hodges, 8,400 shares; Emanuel Chirico, 292,325400,250 shares; Francis K. Duane, 11,275Martijn Hagman, 4,225 shares; Daniel Grieder, 21,846Stefan Larsson, 41,150 shares; Michael A. Shaffer, 22,725 shares; Steven B. Shiffman, 44,77530,275 shares; and all of our directors, nominees for director and executive officers as a group, 435,796492,900 shares. The table also includes the following shares of common stock that are subject to restricted stock unit awards made to the individuals and as a group, the restrictions on which will lapse within 60 days of the record date: Mary Baglivo, 9402,846 shares; Brent Callinicos, 9401,770 shares; Emanuel Chirico, 4,474 shares; Martijn Hagman, 99 shares; Stefan Larsson, 4,275 shares; V. James Marino, 9401,770 shares; Amy McPherson, 9401,770 shares; Craig Rydin, 16,644 shares; Michael A. Shaffer, 4845,700 shares; Amanda Sourry, 9401,770 shares; and all of our directors, nominees for director and executive officers as a group, 5,18441,118 shares. The table also includes the following shares of common stock that are subject to time-vested restricted stock unit awards made to directors with respect to which the named directors have deferred vesting and receipt, principally until the date on which the director separates from service as a director (but in some cases to a date not within 60 days of the record date): Juan R. Figuereo, 6,129 shares; Joseph B. Fuller, 22,08025,620 shares; G. Penny McIntyre, 5,0068,546 shares; Henry Nasella, 22,08025,620 shares; Edward R. Rosenfeld, 6,170 shares; Craig Rydin, 12,0289,710 shares; and all of our directors, nominees for director and executive officers as a group, 73,49369,496 shares. The table does not include the following shares of common stock received after the record date as payouts of performance share unit awards for the three-year performance cycle ended on April 25, 2019 (see page 42): Emanuel Chirico, 52,001 shares; Francis K. Duane, 3,619 shares; Daniel Grieder, 1,810 shares, Michael A. Shaffer, 4,524 shares; Steven B. Shiffman, 3,619 shares; and all of our directors, nominees for director and executive officers as a group, 65,573 shares.
Delinquent
Section 16(a) Reports Based upon our review of the filings furnished to us pursuant to Rule 16a-3(e) under the Securities Exchange Act of 1934, and on representations from our officers and directors, all filing requirements under Section 16(a) were complied with during the fiscal year ended February 3, 2019,January 31, 2021, except for the Form 4 StatementsStatement of Changes In Beneficial Ownership that werewas filed in connection with the annualan RSU grant to each of our independent directors (Messes. Baglivo, McIntyre, McPherson and Sourry and Messrs. Callinicos, Figuereo, Fuller, Marino, Nasella, Rosenfeld and Rydin), These Forms 4 were filed one dayMr. Hagman on August 3, 2020. The late for everyone other than Ms. Sourry and Messrs. Rosenfeld and Rydin, whose Forms 4 were two days late. In all cases the late filings werefiling was due to an administrative error. PVH CORP. 2021 PROXY STATEMENT | 91 | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | | | 79 | | |
General Information
About the Annual Meeting General Information About the Annual Meeting This Proxy Statement is furnished in connection with the solicitation of proxies by the Board of Directors of PVH Corp. to be used at the Annual Meeting of Stockholders on Thursday, June 20, 2019,17, 2021, and at any adjournmentsadjournment or postponement thereof. Our principal executive offices are located at 200 Madison Avenue, New York, New York 10016-3903. The approximate date on which “Green” Initiative Pursuant to SEC rules, we are furnishing this Proxy Statement and the enclosed proxy card were first sent or given to stockholders was May 7, 2019. “Green” Initiative
Copies of our Annual Report on Form 10-K for our fiscal year ended February 3, 2019,January 31, 2021, excluding the exhibits are being mailed(which refer to as the “proxy materials”), to our stockholders together with thisvia the Internet instead of mailing printed copies. This process gives our stockholders quicker access to the proxy materials, reduces the costs of printing and mailing the proxy materials, and lessens the environmental impact of our Annual Meeting. Accordingly, on or around May 7, 2021, we began sending to our stockholders a Notice Regarding the Availability of Proxy Statement. Materials (“Notice”). If you received a Notice, you will not receive a printed copy of the proxy materials unless you request one. The Notice provides instructions on how to access the proxy materials online, how to request a printed set of proxy materials, and how to vote your shares.If you received a printed copy of the Notice but would like to enroll in our electronic delivery service, you may do so at any time by going to www.proxyconsent.com/pvh and following the enrollment instructions. If you hold your shares in a bank or brokerage account, please check the information in the proxy materials provided to you by your bank or broker to determine if you can receive these documents electronically in the future. If you receive more than one annual reportcopy of the Notice at the same address (perhaps because you share that address with another stockholder), you can opt to save us the cost of mailing duplicates.duplicates (“householding”). To do that, or if you no longer wish to participate in householding and would prefer to receive a separate Notice or set of proxy materials, please send your written request, with account information, to the Secretary of PVH at the address shown above. You can help us extend “green” practices even further. Instead of receiving paper copies of our Annual Reports to Stockholders and proxy statements by mail in the future, stockholders of record and most beneficial owners can elect to receive an e-mail that will provide electronic links to these documents. Opting to receive your proxy materials online will help us reduce our environmental impact because we can print and mail fewer copies of these materials. In addition, you will get your documents faster, and PVH will save on printing and mailing costs.
You may enroll in our electronic proxy delivery service at any time by going to www.proxyconsent.com/pvh and following the enrollment instructions. If you hold your shares in a bank or brokerage account, you also may have the opportunity to receive copies of these documents electronically. Please check the information in the proxy materials provided to you by your bank or broker.
Common stockholders of record at the close of business on April 23, 2019,20, 2021, the record date for the meeting, will be entitled to one vote for each share of our common stock then held. As of the record date, there were 75,045,75271,265,958 shares of common stock outstanding. Who Can Attend Attendance at the meeting will \be limited to holders of record as of the record date of our common stock or their proxies, beneficial owners, and invited guests of PVH. How to Attend As a result of the COVID-19 pandemic, our Annual Meeting will be “virtual” — conducted exclusively online via live webcast. We intend to return to in-person meetings in 2022. You will be able during the virtual meeting to vote your shares electronically, submit questions, and view the list of stockholders entitled to vote at the meeting by following the directions below. The Annual Meeting live webcast will begin promptly at 8:45 a.m., EDT, on June 17, 2021. Online check-in will begin promptly at 8:30 a.m., EDT, and you should allow ample time for the online check-in procedures. Virtual attendance at our Annual Meeting constitutes presence in person for purposes of a quorum at the meeting. Stockholders of Record: Holders of record can participate in the virtual meeting by registering at www.proxydocs.com/pvh. After registering, you will receive a confirmation email and an email approximately 1 hour prior to the start of the meeting to the email address you provided during registration with a unique link to the virtual meeting. Beneficial Owners: If you hold shares in a bank or brokerage account, you must obtain a legal proxy and a control number from your brokerage firm to attend the meeting. To access the site with a control number: Visit www.proxydocs.com/brokers/pvh on your smartphone, tablet or computer. | ◾ | After registering using the control number, you will receive a confirmation email and an email approximately 1 hour prior to the start of the meeting to the email address you provided during registration with a unique link to the virtual meeting. |
92 | PVH CORP. 2021 PROXY STATEMENT General Information About the Annual Meeting TECHNICAL ASSISTANCE Technical Assistance If you want to confirm in advance that you are able to access the meeting, or if you experience technical difficulties during the check-in process or during the meeting, you can get technical support beginning at 9:00 a.m. CT on May 11, 2021, through the conclusion of the meeting by contacting EQ Shareowner Services at 1-800-469-9716. How to Vote StockholdersBy Internet and telephone: If you are a record owner, you may vote your proxy on the Internet at www.proxydocs.com/pvh. To vote by casting ballots (in persontelephone in the U.S. or Canada, dial toll-free 1-866-883-3382. By written proxy: If you are a record owner, you can mark, sign and date your proxy card and return it in the postage-page envelope provided. If you received a Notice or the proxy materials electronically, you may request a proxy card by proxy), whichfollowing the instructions on the Notice. If you hold your shares in a bank or brokerage account, you will receive instructions on how you may vote from your bank or broker. At the virtual meeting: If you are tabulateda record owner, you may vote electronically during the meeting by following the inspector of election. instructions at www.proxydocs.com/pvh. If you hold your shares in a bank or brokerage account, you may vote electronically during the meeting by following the instructions at www.proxydocs.com/brokers/pvh.The shares represented by the proxiesany proxy solicited by the Board of Directors will be voted in accordance with the stockholder’s directions given therein unless the proxy is revoked. If we receive a valid signedsubmitted proxy withoutcard or an electronic ballot that doesn’t include voting instructions for one or all of the proposals, we will vote the shares represented by that proxy FOR each of the director nominees in Proposal 1, and FOR Proposals 2 through 5and 3 described in this Proxy Statement. How to Change Your Vote or Revoke Your Proxy If you are a stockholder of record, you canmay revoke your proxy at any timeor change your vote before the meeting by sending a written revocation to the Secretary of PVH, or by granting a new proxy bearing a later date (which automatically revokes the earlier proxy). You may change your vote by voting online during the meeting (until the polls close) but you may not revoke a previously submitted proxy. If you intend to revoke your proxy by providing written notice to the Secretary, please send a copy of PVH at the address shown above, by revokingyour notice via email to CorporateSecretary@pvh.com. If you are a beneficial owner and you wish to change your vote or revoke your proxy, in person at the meeting, or by presenting a later-dated proxy. Beneficial owners of our common stock shouldplease contact theiryour bank, brokerage firm or other custodian, nominee, or fiduciary if they wish to revoke their proxy.fiduciary. Shares represented by proxies will be voted at the meeting unless revoked. Stockholder List Any stockholder as of the record date who has a purpose germane to the meeting may view a complete list of stockholders entitled to vote at the meeting during the ten-day period before the meeting. To request access to the stockholder list, send an email to CorporateSecretary@pvh.com, stating the purpose of the request and providing proof of ownership of our common stock. Our corporate offices remain closed as of the date of this Proxy Statement, but the corporate secretary will arrange a way to make the stockholder list available for inspection. The list of stockholders can also be accessed during the meeting by following the instructions provided at www.proxydocs.com/pvh. How to Submit Questions Prior to the meeting, stockholders as of our record date may submit written questions via www.proxydocs.com/pvh. During the meeting, stockholders may submit questions in real-time by accessing the virtual meeting site at www.proxydocs.com/pvh. We will try to answer as many questions as time permits. However, we reserve the right to edit profanity or other inappropriate language, or to exclude questions that are not pertinent to meeting matters, are otherwise inappropriate, or fail to comply with the meeting rules of conduct. If we receive substantially similar questions, we will group them together and provide a single response to avoid repetition. Abstentions and Broker Non-Votes Abstentions and broker non-votes will be included in the determination of the number of shares present at the meeting for quorum purposes.
Abstentions will have the same effect as negative votes for Proposals 2 through 5. Abstentions will have no effect on the election of directors.
A broker non-vote occurs when a nominee holding shares for a beneficial owner does not vote on a particular proposal because the nominee does not have discretionary voting power with respect to that item and has not received instructions from the beneficial owner. Banks, brokers and other nominees have discretionary voting power only with respect to the ratification of the appointment of our auditor. Abstentions and broker non-votes will be included in the determination of the number of shares present at the meeting for quorum purposes. Abstentions will have the same effect as negative votes for Proposals 2 and 3. Abstentions will have no effect on the election of directors. Broker non-votes are not counted in the tabulations of the votes cast on any other proposalProposals 1 and 2 because they are not considered to be entitled to vote.vote on those proposals. We encourage all beneficial owners to vote their shares because banks, brokers and other nominees cannot vote without instructions.
PVH CORP. 2021 PROXY STATEMENT | 93 | | 80 | | | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | |
General Information About the Annual Meeting REQUIRED VOTE FOR EACH PROPOSAL Required Vote for Each Proposal Required Vote for Each Proposal
The table below shows the voting requirement for each proposal to be presented at the Annual Meeting. | Matter | | | Required Vote | | | Broker Discretionary
Vote Allowed | | Election of directorsDirectors | | | Majority of votes cast | | | No | | Advisory voteVote on executive compensationExecutive Compensation | | | Majority of shares present and entitled to vote
on this matter | | | No | | Approval of an amendment to our Certificate of Incorporation to eliminate the requirement of an 80% supermajority vote for stockholders to approve certain transactions with certain stockholders | | | 80% of shares eligible to vote | | | No | | Approval of an amendment to our Certificate of Incorporation to eliminate the requirement of an 80% supermajority vote for stockholders to amend our By-Laws | | | 80% of shares eligible to vote | | | No | | Ratification of Ernst & Young LLP as our independent auditor for fiscal year 2019Our Independent Auditor For Fiscal Year 2021 | | | Majority of shares present and entitled to vote
on this matter | | | Yes | |
Other Matters Presented at the Annual Meeting In accordance with the requirements of advance notice described in our By-Laws, no stockholder nominations or stockholder proposals other than those included in this Proxy Statement will be presented at the Annual Meeting. The Board of Directors does not intend to present, and does not have any reason to believe that others intend to present any matter of business at the meeting other than those described in this Proxy Statement. However, if other matters properly come before the meeting, the individuals named in the enclosed form of proxy will vote any proxies in accordance with their judgment. Stockholder Proposals for the 20202022 Annual Meeting Proposals Pursuant to Rule 14a-8
If you wish to present a proposal at our 20202022 Annual Meeting of Stockholders and want that proposal included in our Proxy Statement, we must receive the requisite information on or before January 8, 2020. 7, 2022.Director Nominations for Inclusion in 20202022 Proxy Statement If you wish to nominate a person for election as a director at our 20202022 Annual Meeting of Stockholders and want the nominee included in our Proxy Statement pursuant to the proxy access provisions of our By-Laws, we must receive notice between December 9, 2019,8, 2021, and January 8, 2020.7, 2022. The notice must contain the information required by our By-Laws. Other Stockholder Proposals If you intend to present a proposal or nominate a person for election as a director at our 20202022 Annual Meeting of Stockholders other than as described above, you must comply with the requirements set forth in our By-Laws. Our By-Laws require, among other things, that we receive written notice of the intent to present a proposal or nomination between the close of business on February 21, 2020,17, 2022, and the close of business on March 22, 2020.19, 2022. The notice must contain the information required by our By-Laws. Notice of the above matters should be directed to the Secretary of PVH at the address set forth at the top of this section.
Costs of this Proxy Solicitation We will bear the cost of preparing, assembling and mailing the enclosed form of proxy, this Proxy Statement and other material that may be sent to stockholders in connection herewith. Solicitation may be made by mail, telephone, telegraph or personal interview.in-person. We may reimburse persons holding shares in their names or in the names of nominees for their expense in sending proxies and proxy materials to their principals. In addition, Georgeson Inc.,Equiniti (US) Services LLC, which is retained by us on an annual basis, will aid in the solicitation of proxies for a fee of $7,500$8,500 plus expenses. By orderInterests of Certain Persons in Matters to be Acted Upon No director or executive officer of the Boardcompany who has served at any time since the beginning of Directors, the 2020 fiscal year, and no nominee for election as a director of the company, or any of their respective associates, has any substantial interest, direct or indirect, in any matter to be acted upon at the Annual Meeting other than the interests held by such persons through their respective beneficial ownership of the shares of the company’s capital stock set forth above in the section entitled “Security Ownership of Certain Beneficial Owners and Management.”
Mark D. Fischer
Secretary New York, New York
May 7, 2019
94 | PVH CORP. 2021 PROXY STATEMENT | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | | | 81 | | |
Exhibit A GAAP to Non-GAAP Reconciliations TO NON-GAAP RECONCILIATIONS(Dollars and Shares in Millions, Except Per Share Data) | | | | 2018 | | | | | | GAAP | | | Adjustments(1) | | | Non-GAAP | | | Foreign
Exchange
Impact | | | Constant
Currency | | | Revenue — Consolidated | | | | $ | 9,657 | | | | | | | | | | | | | | | | | $ | 60 | | | | | $ | 9,597 | | | | Tommy Hilfiger | | | | | 4,345 | | | | | | | | | | | | | | | | | | 50 | | | | | | 4,295 | | | | Calvin Klein | | | | | 3,731 | | | | | | | | | | | | | | | | | | 11 | | | | | | 3,720 | | | | Heritage Brands | | | | | 1,581 | | | | | | | | | | | | | | | | | | (1) | | | | | | 1,582 | | | | Earnings Before Interest and Taxes | | | | $ | 892 | | | | | $ | (79) | | | | | $ | 971 | | | | | | | | | | | | | | | | Net Income per Common Share Calculation | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net Income Attributable to PVH Corp. | | | | $ | 746 | | | | | $ | 4 | | | | | $ | 742 | | | | | | | | | | | | | | | | Total Shares for Diluted Net Income per Common Share | | | | | 77 | | | | | | | | | | | | 77 | | | | | | | | | | | | | | | | Diluted Net Income per Common Share Attributable to PVH Corp. | | | | $ | 9.65 | | | | | | | | | | | $ | 9.60 | | | | | | | | | | | | | | |
| | | 2020 | | | | GAAP
($) | | | Adjustments(1)
($) | | | Non-GAAP
($) | | | Revenue - Consolidated | | | 7,133 | | | | | | | | | | | Tommy Hilfiger | | | 3,636 | | | | | | | | | | | Calvin Klein | | | 2,638 | | | | | | | | | | | Heritage Brands | | | 858 | | | | | | | | | | | Loss Before Interest and Taxes | | | (1,072) | | | | (1,035) | | | | (37) | | | Net Loss Per Common Share Calculation | | | | | | | | | | | | | | Net Loss Attributable to PVH Corp. | | | (1,136) | | | | (996) | | | | (140) | | | Total Shares for Diluted Net Loss per Common Share | | | 71 | | | | | | | | 71 | | | Diluted Net Loss per Common Share Attributable to PVH Corp.(2) | | | 15.96 | | | | | | | | (1.97) | |
| | | 2019 | | | | GAAP | | | Adjustments(3) | | | Non-GAAP | | | | | ($) | | | ($) | | | ($) | | | Revenue - Consolidated | | | 9,909 | | | | | | | | | | | Tommy Hilfiger | | | 4,712 | | | | | | | | | | | Calvin Klein | | | 3,668 | | | | | | | | | | | Heritage Brands | | | 1,529 | | | | | | | | | | | Earnings Before Interest and Taxes | | | 559 | | | | (372) | | | | 931 | | | Net Income Per Common Share Calculation | | | | | | | | | | | | | | Net Income Attributable to PVH Corp. | | | 417 | | | | (294) | | | | 711 | | | Total Shares for Diluted Net Income per Common Share | | | 75 | | | | | | | | 75 | | | Diluted Net Income per Common Share Attributable to PVH Corp. | | | 5.60 | | | | | | | | 9.54 | |
| | | 2018 | | | | GAAP | | | Adjustments(4) | | | Non-GAAP | | | | | | ($) | | | | ($) | | | | ($) | | | REVENUE - CONSOLIDATED | | | 9,657 | | | | | | | | | | | Tommy Hilfiger | | | 4,345 | | | | | | | | | | | Calvin Klein | | | 3,371 | | | | | | | | | | | Heritage Brands | | | 1,581 | | | | | | | | | | | EARNINGS BEFORE INTEREST AND TAXES | | | 892 | | | | (79) | | | | 971 | | | NET INCOME PER COMMON SHARE CALCULATION | | | | | | | | | | | | | | Net Income Attributable to PVH Corp. | | | 746 | �� | | | 4 | | | | 742 | | | Total Shares for Diluted Net Income per Common Share | | | 77 | | | | | | | | 77 | | | Diluted Net Income per Common Share Attributable to PVH Corp. | | | 9.65 | | | | | | | | 9.60 | |
1 | Adjustments for 2020 represent the elimination of (i) the expense resulting from the remeasurement of a mandatorily redeemable non-controlling interest that was recognized in connection with the acquisition of the approximately 78% interest in Gazal Corporation Limited (“Gazal”) that we did not already own (the “Australia acquisition”), (ii) the noncash impairment charges related to goodwill, tradenames, other intangible assets, and store assets, as well as an equity method investment, primarily as a result of the significant negative impacts of the COVID-19 pandemic on our business; (iii) the noncash net loss related to the sale of the Speedo North America business in April 2020 (the “Speedo transaction”) and the resulting deconsolidation of the net assets of the business; (iv) the costs in connection with the consolidation within our warehouse and distribution network in North America; (v) the costs in connection with the reduction in the North America office workforce announced in July 2020 (the “North America workforce reduction”), primarily consisting of severance; (vi) the costs in connection with the planned exit from the Heritage Brands Retail business announced in July 2020, consisting of severance, noncash asset impairments, and accelerated amortization of lease assets and other costs; (vii) the recognized actuarial gain on retirement plans; (viii) the discrete tax expense related to the remeasurement of certain of our net deferred tax liabilities in connection with the enactment of legislation in the Netherlands; and (ix) the tax effects associated with the other foregoing pre-tax items. |
PVH CORP. 2021 PROXY STATEMENT | A-1 | 2 | Diluted net loss per common share attributable to PVH for 2020 excluded all potentially dilutive securities because there was a net loss attributable to PVH for the period and, as such, the inclusion of these securities would have been anti-dilutive. | Net Income per Common Share — 2018 Initial Guidance | | | GAAP | | | Adjustments(2)
| | | Non-GAAP | | Diluted Net Income per Common Share Attributable3 | Adjustments for 2019 represent the elimination of (i) the costs incurred related to the restructuring associated with the strategic changes for our Calvin Klein business announced in January 2019 (the “Calvin Klein restructuring”); (ii) the costs incurred in connection with the closure of our TOMMY HILFIGER flagship and anchor stores in the United States (the “TH U.S. store closures”), primarily consisting of noncash lease asset impairments; (iii) the costs incurred in connection with the refinancing of our senior credit facilities; (iv) the costs incurred related to the Australia acquisition and the acquisition of the Tommy Hilfiger retail business in Central and Southeast Asia from our previous licensee in that market (the “TH CSAP acquisition”), primarily consisting of noncash valuation adjustments; (v) the noncash gain recorded to write up our previously held equity investments in Gazal and PVH Corp.Brands Australia Pty. Limited (“PVH Australia”) to fair value in connection with the Australia acquisition; (vi) the one-time costs recorded on our equity investments in Gazal and PVH Australia prior to the Australia acquisition closing; (vii) the costs incurred in connection with the agreements to terminate early the licenses for the global Calvin Klein and Tommy Hilfiger North America socks and hosiery businesses (the “Socks and Hosiery transaction”) in order to consolidate the socks and hosiery businesses for all of our brands in North America in a newly formed joint venture and to bring in-house the international Calvin Klein socks and hosiery wholesale businesses; (viii) the expense resulting from the remeasurement of a mandatorily redeemable non-controlling interest recognized in connection with the Australia acquisition; (ix) the noncash loss related to the Speedo transaction; (x) the recognized actuarial loss on retirement plans; (xi) the discrete tax benefit related to the write-off of deferred tax liabilities in connection with the Speedo transaction; and (xii) the tax effects associated with the other foregoing pre-tax items. | | | | 4 | | $8.76 – $8.86 | | | | $ | (0.24Adjustments for 2018 represent the elimination of (i) the costs incurred related to the acquisition of the 55% interest in TH Asia, Ltd. (“TH China”) | | | | $9.00 – $9.10 | , our former joint venture for TOMMY HILFIGER in China, that we did not already own (the “TH China acquisition”), consisting of noncash amortization of short-lived assets; (ii) the costs related to the Calvin Klein restructuring; (iii) the recognized actuarial loss on retirement plans; (iv) the discrete tax benefit related to the remeasurement of certain net deferred tax liabilities in connection with the enactment of legislation in the Netherlands; (v) the discrete net tax benefit recorded in connection with the U.S. Tax Cuts and Jobs Act of 2017; and (vi) the tax effects associated with the foregoing pre-tax items. |
| | | | 2017 | | | | | | GAAP | | | Adjustments(3) | | | Non-GAAP | | | Revenue — Consolidated | | | | $ | 8,915 | | | | | | | | | | | | | | | | Tommy Hilfiger | | | | | 3,893 | | | | | | | | | | | | | | | | Calvin Klein | | | | | 3,462 | | | | | | | | | | | | | | | | Heritage Brands | | | | | 1,560 | | | | | | | | | | | | | | | | Earnings Before Interest and Taxes | | | | $ | 632 | | | | | $ | (232) | | | | | $ | 864 | | | | Net Income per Common Share Calculation | | | | | | | | | | | | | | | | | | | | | Net Income Attributable to PVH Corp. | | | | $ | 538 | | | | | $ | (86) | | | | | $ | 624 | | | | Total Shares for Diluted Net Income per Common Share | | | | | 79 | | | | | | | | | | | | 79 | | | | Diluted Net Income per Common Share Attributable to PVH Corp. | | | | $ | 6.84 | | | | | | | | | | | $ | 7.94 | | |
| | | | 2016 | | | | | | GAAP | | | Adjustments(4) | | | Non-GAAP | | | Earnings Before Interest and Taxes | | | | $ | 789 | | | | | $ | (5) | | | | | $ | 794 | | | | Net Income per Common Share Calculation | | | | | | | | | | | | | | | | | | | | | Net Income Attributable to PVH Corp. | | | | $ | 549 | | | | | $ | (1) | | | | | $ | 550 | | | | Total Shares for Diluted Net Income per Common Share | | | | | 81 | | | | | | | | | | | | 81 | | | | Diluted Net Income per Common Share Attributable to PVH Corp. | | | | $ | 6.79 | | | | | | | | | | | $ | 6.80 | | |
1
Adjustments for 2018 represent the elimination of (i) the costs related to the acquisition of the 55% interest in TH Asia, Ltd. (“TH China”), our former joint venture for TOMMY HILFIGER in China, that we did not already own (the “TH China acquisition”), consisting of noncash amortization of short-lived assets; (ii) the costs related to the restructuring
A-2 | PVH CORP. 2021 PROXY STATEMENT | | A-1 | | | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | |
associated with the strategic changes for the Calvin Klein business announced in January 2019 (the “Calvin Klein restructuring”), primarily consisting of severance, noncash asset impairments, contract termination and other costs, and inventory markdowns; (iii) the recognized actuarial loss on retirement plans; (iv) the tax effects associated with the foregoing pre-tax items; (v) the discrete net tax benefit recorded in connection with the U.S. Tax Cuts and Jobs Act of 2017 (“U.S. Tax Legislation”); and (vi) the discrete tax benefit related to the remeasurement of certain net deferred tax liabilities in connection with the enactment of legislation in the Netherlands, which became effective on January 1, 2019.
2
Adjustments for our 2018 initial guidance represent the elimination of the costs that were expected to be incurred in connection with the TH China acquisition, consisting of noncash amortization of short-lived assets, and the resulting estimated tax effect.
3
Adjustments for 2017 represent the elimination of (i) the costs related to the TH China acquisition, primarily consisting of noncash amortization of short-lived assets; (ii) the costs in connection with agreements to restructure our supply chain relationship with Li & Fung Trading Limited (“Li & Fung”), under which we terminated our non-exclusive buying agency agreement with Li & Fung in 2017 (the “Li & Fung termination”); (iii) the costs in connection with the relocation of the Tommy Hilfiger office in New York, including noncash depreciation expense; (iv) the costs in connection with the noncash settlement of certain of our benefit obligations related to our retirement plans as a result of an annuity purchased for certain participants, under which such obligations were transferred to an insurer; (v) the net costs in connection with the consolidation within our warehouse and distribution network in North America, which included a gain recorded on the sale of a warehouse and distribution center; (vi) the costs in connection with an amendment to Mr. Tommy Hilfiger’s employment agreement pursuant to which we made a cash buyout of a portion of the future payment obligation (the “Mr. Hilfiger amendment”); (vii) the costs in connection with the early redemption of our $700 million 4 1/2% senior notes; (viii) the costs in connection with the issuance of our €600 million 3 1/8% senior notes; (ix) the recognized actuarial loss on retirement plans; (x) the tax effects associated with the foregoing pre-tax items; (xi) the discrete tax benefits related to the resolution of uncertain tax positions; (xii) the discrete net tax benefit recorded in connection with the U.S. Tax Legislation; and (xiii) the discrete tax benefit related to an excess tax benefit from the exercise of stock options by our Chairman and Chief Executive Officer.
4
Adjustments for 2016 represent the elimination of (i) the costs in connection with our integration of The Warnaco Group, Inc. (“Warnaco”) and the related restructuring; (ii) the costs in connection with the discontinuation of several licensed product lines in the Heritage Brands dress furnishings business; (iii) the costs in connection with the licensing to G-III Apparel Group, Ltd. of the Tommy Hilfiger womenswear wholesale business in the U.S. and Canada (the “G-III license”), which resulted in the discontinuation of our directly operated Tommy Hilfiger North America womenswear wholesale business in 2016; (iv) the costs in connection with the restructuring associated with the global creative strategy for CALVIN KLEIN; (v) the noncash gain recorded to write-up our equity investment in TH China to fair value in connection with the TH China acquisition; (vi) the one-time costs recorded on our equity investment in TH China prior to the TH China acquisition closing; (vii) the costs in connection with the TH China acquisition, primarily consisting of noncash valuation adjustments and amortization of short-lived assets; (viii) the costs in connection with the amendment of our credit facility; (ix) the noncash loss recorded in connection with the deconsolidation of our subsidiary that principally operated and managed our Calvin Klein business in Mexico in connection with the formation of a joint venture in Mexico (“PVH Mexico”) to operate that and other businesses (the “Mexico deconsolidation”); (x) the gain recorded in connection with a payment made to us to exit a TOMMY HILFIGER flagship store in Europe; (xi) the costs in connection with the early termination of the license agreement for the Tommy Hilfiger men’s tailored clothing business in North America in order to consolidate under a different licensee the men’s tailored businesses for all brands in North America (the “TH men’s tailored license termination”); (xii) the recognized actuarial gain on retirement plans; (xiii) the tax effects associated with the foregoing pre-tax items; and (xiv) the discrete tax benefits related to the resolution of uncertain tax positions.
| | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | | | A-2 | | |
Reconciliations of GAAP Earnings Before Interest and Taxes to Non-GAAP Earnings
Before Interest and Taxes
(Dollars in Millions)
| | | | 2018 | | | 2017 | | | 2016 | | | Earnings before interest and taxes | | | | $ | 892 | | | | | $ | 632 | | | | | $ | 789 | | | | % change over prior year | | | | | 41% | | | | | | -20% | | | | | | | | | | Items excluded: | | | | | | | | | | | | | | | | | | | | | Gross profit charges associated with the Calvin Klein restructuring (inventory markdowns) | | | | | 2 | | | | | | | | | | | | | | | | Gross profit charges associated with the TH China acquisition (short-lived noncash inventory valuation adjustments) | | | | | | | | | | | | | | | | | 7 | | | | SG&A expenses associated with the Mr. Hilfiger amendment | | | | | | | | | | | 83 | | | | | | | | | | SG&A expenses associated with the Li & Fung termination | | | | | | | | | | | 54 | | | | | | | | | | SG&A expenses associated with the Calvin Klein restructuring | | | | | 39 | | | | | | | | | | | | | | | SG&A expenses associated with the TH China acquisition (primarily consisting of noncash
amortization of short-lived assets) | | | | | 24 | | | | | | 27 | | | | | | 70 | | | | SG&A expenses associated with the relocation of the Tommy Hilfiger office in New York (including noncash depreciation expense) | | | | | | | | | | | 19 | | | | | | | | | SG&A expenses associated with the noncash settlement of certain of our retirement plan
benefit obligations | | | | | | | | | | | 9 | | | | | | | | | | SG&A expenses associated with the consolidation within our warehouse and distribution network in North America, which included a gain recorded on the sale of a warehouse and distribution center | | | | | | | | | | | 8 | | | | | | | | | SG&A expenses associated with the issuance of our €600 million 31∕8% senior notes | | | | | | | | | | | 4 | | | | | | | | | | SG&A expenses associated with integration of Warnaco and related restructuring | | | | | | | | | | | | | | | | | 10 | | | | SG&A expenses associated with the G-III license | | | | | | | | | | | | | | | | | 4 | | | SG&A expenses associated with the global creative strategy for CALVIN KLEIN and related
restructuring | | | | | | | | | | | | | | | | | 6 | | | | SG&A expenses associated with the discontinuation of several licensed product lines in the Heritage Brands dress furnishings business | | | | | | | | | | | | | | | | | 3 | | | Gain recorded in connection with a payment made to us to exit a TOMMY HILFIGER flagship store in Europe (recorded in SG&A) | | | | | | | | | | | | | | | | | (18) | | | | SG&A expenses associated with the TH men’s tailored license termination | | | | | | | | | | | | | | | | | 11 | | | | Actuarial loss (gain) on retirement plans (recorded in non-service related pension and postretirement cost (income)) | | | | | 15 | | | | | | 3 | | | | | | (39) | | | Gain to write-up our equity investment in TH China to fair value (recorded in other noncash
gain, net) | | | | | | | | | | | | | | | | | (153) | | | | Loss recorded in connection with the Mexico deconsolidation (recorded in other noncash gain, net) | | | | | | | | | | | | | | | | | 82 | | | | Noncash amortization of short-lived assets recorded on our equity investment in PVH Mexico (recorded in equity in net income of unconsolidated affiliates) | | | | | | | | | | | | | | | | | 2 | | | | One-time expenses recorded on our equity investment in TH China (recorded in equity in net income of unconsolidated affiliates) | | | | | | | | | | | | | | | | | 6 | | | | Debt modification and extinguishment costs | | | | | | | | | | | 24 | | | | | | 16 | | | | Non-GAAP earnings before interest and taxes | | | | $ | 971 | | | | | $ | 864 | | | | | $ | 794 | | | | % change over prior year | | | | | 12% | | | | | | 9% | | | | | | | | |
| | A-3 | | | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | |
Exhibit B NEO Employment Agreements | Name | | | Description | | | SEC Filing | | EMANUEL CHIRICO | Emanuel Chirico | ◾ | | SecondThird Amended and Restated Employment Agreement First Amendment to Second Amended and Restated Employment Agreement
Second Amendment to Second Amended and Restated Employment Agreement
Third Amendment to Second Amended and Restated Employment Agreement
| | ◾ | ■
AnnualCurrent Report on Form 10-K for the fiscal year ended February 1, 2009,8-K filed on May 22, 2019, Exhibit 10.15
■
10.2 | | ◾ | Salary Reduction Consent and Waiver | ◾ | Quarterly Report on Form 10-Q for the period ended May 2, 2010,3, 2020, Exhibit 10.1
■
| | ◾ | Transition Agreement
Quarterly Report on Form 10-Q for the period ended August 1, 2010, Exhibit 10.6
■
| ◾ | Current Report on Form 8-K filed January 28, 2011,on February 1, 2021, Exhibit 10.1
| 10.2 | MICHAEL A. SHAFFER | Michael A. Shaffer | ◾ | | Second Amended and Restated Employment Agreement First Amendment to Second Amended and Restated Employment Agreement
| | ◾ | ■
Annual Report on Form 10-K for the fiscal year ended February 1, 2009, Exhibit 10.30
■
| | ◾ | First Amendment to Second Amended and Restated Employment Agreement | ◾ | Current Report on Form 8-K filed January 28, 2011, Exhibit 10.2
| | ◾ | Francis K. DuaneSalary Reduction Consent and Waiver | ◾ | Quarterly Report on Form 10-Q for the period ended May 3, 2020, Exhibit 10.3 | | STEFAN LARSSON | | ◾ | Employment Agreement | | ◾ | Current Report on Form 8-K filed on May 22, 2019, Exhibit 10.1 | | ◾ | Salary Reduction Consent and Waiver | ◾ | Quarterly Report on Form 10-Q for the period ended May 3, 2020, Exhibit 10.3 | | ◾ | First Amendment to Employment Agreement | ◾ | Current Report on Form 8-K filed on February 1, 2021, Exhibit 10.1 | | CHERYL ABEL-HODGES | | ◾ | Employment Agreement | | ◾ | Current Report on Form 8-K filed on February 14, 2020, Exhibit 10.1 | | ◾ | Salary Reduction Consent and Waiver | ◾ | Quarterly Report on Form 10-Q for the period ended May 3, 2020, Exhibit 10.3 | | MARTIJN HAGMAN | | ◾ | Employment Agreement | | ◾ | ■
Annual Report on Form 10-K for the fiscal year ended February 4, 2018,January 31, 2021, Exhibit 10.8 10.25 |
PVH CORP. 2021 PROXY STATEMENT | B-1
| | | Daniel Grieder | | | Employment Contract | | | ■
Quarterly Report on Form 10-Q for the quarter ended April 30, 2017, Exhibit 10.1
| | | Steven B. Shiffman | | | Second Amended and Restated Employment Agreement
First Amendment to Second Amended and Restated Employment Agreement
Second Amendment to Second Amended and Restated Employment Agreement
| | | ■
Annual Report on Form 10-K for the fiscal year ended February 1, 2015, Exhibits 10.25, 10.26 and 10.27
| |
| | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | | | B-1 | | |
Exhibit C
AMENDED AND RESTATED CERTIFICATE OF INCORPORATION
OF PVH CORP.
PVH Corp., a corporation organized and existing under the General Corporation Law of the State of Delaware (the “Corporation”), does hereby certify as follows:
1. The original name of the Corporation was Phillips-Van Heusen Corporation.
2. The Corporation’s original Certificate of Incorporation was filed with the Secretary of State on April 8, 1976.
3. This Amended and Restated Certificate of Incorporation was duly adopted in accordance with Sections 242 and 245 of the General Corporation Law of the State of Delaware.
4. The text of the Certificate of Incorporation of this Corporation is hereby amended and restated in its entirety to read as follows:
FIRST: The name of the Corporation is PVH Corp.
SECOND: The registered office of the Corporation in the State of Delaware is located at c/o Corporation Service Company, 251 Little Falls Drive, City of Wilmington, County of New Castle, Delaware 19808. The name of the registered agent of the Corporation at such address is Corporation Service Company.
THIRD: The purpose of the Corporation is to engage in any lawful act or activity for which corporations may be organized under the General Corporation Law of Delaware.
FOURTH: A. The total number of shares of all classes of stock which the Corporation shall have authority to issue is 240,150,000. 150,000 of said shares shall be of the par value of $100 each and shall be designated Preferred Stock and 240,000,000 of said shares shall be of the par value of $1 each and shall be designated Common Stock.
B. The Board of Directors is hereby expressly granted the power by resolution or resolutions to issue the Preferred Stock in one or more series, which series may have such voting powers, full, limited or by series, or no voting powers, and such designations, preferences and relative, participating, optional or other special rights, and qualifications, limitations or restrictions thereof, as shall be fixed by the Board of Directors and as shall be stated and expressed in the resolution or resolutions providing for the issue of such series adopted by the Board of Directors.
C. I. Subject to any preferential dividend rights applicable to shares of the Preferred Stock, the holders of shares of the Common Stock shall be entitled to receive such dividends as may be declared by the Board of Directors.
II. In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Corporation, after distribution in full of any preferential amounts applicable to shares of the Preferred Stock, the holders of shares of the Common Stock shall be entitled to receive all of the remaining assets of the Corporation available for distribution to its stockholders, ratably in proportion to the number of shares of the Common Stock held by them.
III. Subject to any special voting rights applicable to shares of the Preferred Stock and except as provided or in part B of this Article Fourth, the holders of shares of the Common Stock shall be entitled to vote on all matters at all meetings of the stockholders of the Corporation, and shall be entitled to one vote for each share of the Common Stock entitled to vote at such meeting, voting together with the holders of any shares of the Preferred Stock who are entitled to vote, and not as a separate class.
FIFTH: The Board of Directors shall consist of not less than 9, nor more than 21 members as determined from time to time by the Board of Directors.
SIXTH A. The affirmative vote of not less than 80% of the outstanding stock of the Corporation entitled to vote thereon shall be required
| | C-1 | | | | | | | PVH CORP. 2019 PROXY STATEMENT
| | | | | |
(i) to adopt any agreement for the merger or consolidation of the Corporation or any “subsidiary” (which term is hereinafter defined) into or with any other “person” (which term is also hereinafter defined) or the merger of any other person into the Corporation or any subsidiary,
(ii) to authorize any sale, lease, exchange, mortgage or pledge to any other person of all or substantially all of the property and assets of the Corporation or any subsidiary, or any part of such assets having a fair market value greater than 50% of the fair market value of the total assets of the Corporation or such subsidiary, or
(iii) to authorize the issuance or transfer by the Corporation or any subsidiary of any voting securities of the Corporation or any subsidiary having a fair market value of more than $1,000,000 in exchange or payment for the securities or property and assets (including cash) or any other person,
if, in any such case, as of the record date for the determination of stockholders entitled to notice thereof and to vote thereon or consent thereto, such other person is the “beneficial owner” (which term is hereinafter defined) of 5% or more of the outstanding stock of the Corporation entitled to vote in elections of directors; provided, however, that the provisions of this part A shall not apply to (1) any transaction consistent in all material respects with a memorandum of understanding approved by the Board of Directors of the Corporation prior to the time such person shall have become the beneficial owner of 5% or more of the outstanding stock of the Corporation entitled to vote in elections of directors or (II) any transaction if the Corporation and its subsidiaries beneficially own a majority of the outstanding stock entitled to vote in elections of directors of such person.
B. For the purposes of this Article SIXTH:
I. A person shall be deemed to be the “beneficial owner” of shares of stock of the Corporation (other than shares of the Corporation’s stock held in its treasury) (1) which such person and its “affiliates” and “associates” (which terms are hereinafter defined) beneficially own, directly or indirectly, whether of record or not, (2) which such person or any of its affiliates or associates has the right to acquire pursuant to any agreement, upon the exercise of conversion rights, warrants or options, or otherwise, (3) which such person or any of its affiliates or associates has the right to sell or vote pursuant to any agreement or (4) which are beneficially owned, directly or indirectly, by any other person with which such first mentioned person or any of its affiliates or associates has any agreement, arrangement or understanding for the purposes of acquiring, holding, voting or disposing of securities of the Corporation.
II. A “subsidiary” is any corporation 50% or more of the voting securities of which are owned, directly or indirectly, by the Corporation.
III. A “person” is any individual, corporation or other entity.
IV. An “affiliate” of a specified person is a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such specified person.
V. An “associate” of a specified person is (1) any person of which such specified person is an officer or partner or is, directly or indirectly, the beneficial owner of 10% or more of any class of equity securities, (2) any trust or other estate in which such specified person has a substantial beneficial interest or as to which such specified person serves as trustee or in a similar fiduciary capacity, (3) any relative or spouse of such specified person, or any relative of such spouse, who has the same home as such specified person or who is a director or officer of such specified person or any corporation which controls or is controlled by such specified person, or (4) any other member or partner in a partnership, limited partnership, syndicate or other group of which such specified person is a member or partner and which is acting together for the purpose of acquiring, holding or disposing of securities of the Corporation.
C. For the purposes of determining whether a person is the beneficial owner of 5% or more of the outstanding stock of the Corporation, the outstanding stock of the Corporation shall include shares deemed owned pursuant to the provisions of clause (2) of division I of part B of this Article SIXTH, but shall not include any other shares which may be issuable pursuant to any agreement or upon the exercise of any conversion rights, warrants or options, or otherwise, or shares owned by the Corporation or any subsidiary.
D. The Board of Directors shall, on the basis, on the basis of information known to it, make all determinations required to be made pursuant to the provisions of this Article SIXTH, including, without limiting the generality of the foregoing.
| | | | | PVH CORP. 2019 PROXY STATEMENT
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(i) the fair market value of any assets of the Corporation or any subsidiary proposed to be disposed of and the fair market value of the total assets of the Corporation or such subsidiary,
(ii) the fair market value of any voting securities of the Corporation or any subsidiary proposed to be issued or transferred,
(iii) whether any person is the beneficial owner of 5% or more of the outstanding stock of the Corporation entitled to vote in the election of directors,
(iv) whether any memorandum of understanding is consistent in all material respects with a proposed transaction, and
(v) the persons who are the affiliates and associates of any other person.
Any such determination shall be conclusive and binding for all purposes of this Article SIXTH.
E. The affirmative vote of not less than 80% of the outstanding stock of the Corporation entitled to vote thereon shall be required (i) to adopt any agreement for the merger or consolidation of the Corporation into or with a subsidiary (but not for the merger of a subsidiary into the Corporation) or (ii) to authorize any sale, lease, exchange, mortgage or pledge to a subsidiary of all or substantially all of the property and assets of the Corporation.
F. The affirmative vote of not less than 80% of the outstanding stock of the Corporation entitled to vote thereon shall be required for the dissolution of the Corporation.
G. The affirmative vote of not less than 80% of the outstanding stock of the Corporation entitled to vote thereon shall be required to authorize any amendment to the Certificate of Incorporation of the Corporation which shall alter, amend, change, or repeal any of the provisions of this Article SIXTH.
SEVENTHSIXTH: A. The Board of Directors shall have the power to adopt, alter, amend, change, or repeal the By-Laws of the Corporation.
B. The By-Laws of the Corporation shall not be adopted, altered, amended, changed or repealed by the stockholders except by the affirmative vote of not less than 80%a majority of the outstanding stock of the Corporation entitled to vote in the election of directors.
C. The affirmative vote of not less than 80% of the outstanding stock of the Corporation entitled to vote thereon shall be required to authorize any amendment to the Certificate of Incorporation of the Corporation which shall alter, amend, change, or repeal any of the provisions of this Article SEVENTH.
EIGHTHSEVENTH: No director of the Corporation shall be personally liable to the Corporation or its stockholders for monetary damages for breach of his or her fiduciary duty as a director; provided, however, that nothing in this Article EIGHTHSEVENTH shall eliminate or limit the liability of any director (i) for any breach of the director’s duty of loyalty to the Corporation or its stockholders, (ii) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law, (iii) under Section 174 of the General Corporation Law of the State of Delaware, or (iv) for any transaction from which the director derived and improper benefit.
IN WITNESS WHEREOF, the Corporation has caused this Amended and Restated Certificate of Incorporation to be signed by the undersigned, a duly authorized officer of the Corporation, on June 20, 2019.
By:
/s/ Mark D. Fischer
Mark D. Fischer
Secretary
| | C-3 | | | | | | | PVH CORP. 2019 PROXY STATEMENT
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PVH Corp.
200 Madison Avenue
New York, NY 10016
PVH.com
![[MISSING IMAGE: tv519032_proxy1.jpg]](https://files.docoh.com/DEF 14A/0001144204-19-024142/tv519032_proxy1.jpg) (Continued, and to be dated and signed on the other side.) PVH CORP. ANNUAL MEETING OF STOCKHOLDERS June 20, 2019 Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting of Stockholders to be held on June 20, 2019. The proxy statement and annual report to stockholders are available to view online at www.pvhannualmeetingmaterials.com. “Green” Initiative If you would like to access the proxy information electronically in the future rather than receive paper copies in the mail, please visit www.proxyconsent.com/pvh and follow the instructions. PVH CORP. 200 Madison Avenue New York, New York 10016-3903 THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS EMANUEL CHIRICO and MARK D. FISCHER, or either of them, with the power of substitution, are hereby authorized to represent the undersigned and to vote all shares of the Common Stock of PVH CORP. held by the undersigned at the Annual Meeting of Stockholders to be held in New York, New York, on June 20, 2019, and any adjournments thereof, on the matters printed on the reverse side. This Proxy, when properly executed, will be voted in the manner directed herein by the undersigned stockholder. If this Proxy is executed but no directions are given, this Proxy will be voted: FOR the election of all of the nominees for director. FOR the approval of the advisory resolution on executive compensation. FOR the approval of the amendment to our Certificate of Incorporation to eliminate the requirement of an 80% supermajority vote for stockholders to approve certain transactions with certain stockholders. FOR the approval of the amendment to our Certificate of Incorporation to eliminate the requirement of an 80% supermajority vote for stockholders to amend our By-Laws. FOR the ratification of auditors. Vote by Internet, Telephone or Mail 24 Hours a Day, 7 Days a Week Your phone or Internet vote authorizes the named proxies to vote your shares in the same manner as if you marked, signed and returned your proxy card. INTERNET/MOBILE www.proxypush.com/pvh Use the Internet to vote your proxy until 12:00 p.m. (CT) on June 19, 2019 PHONE 1-866-883-3382 Use a touch-tone telephone to vote your proxy until 12:00 p.m. (CT) on June 19, 2019. MAIL Mark, sign and date your proxy card and return it in the postage-paid envelope provided. If you vote your proxy by Internet or by Telephone, you do NOT need to mail back your Proxy Card.
![[MISSING IMAGE: tv519032_proxy2.jpg]](https://files.docoh.com/DEF 14A/0001144204-19-024142/tv519032_proxy2.jpg) Shareowner Services P.O. Box 64945 St. Paul, MN 55164-0945 Address Change? Mark box, sign, and indicate changes below: TO VOTE BY INTERNET OR TELEPHONE, SEE REVERSE SIDE OF THIS PROXY CARD The Board recommends a vote FOR all of the nominees in proposal 1 and FOR proposals 2, 3, 4 and 5 1. Election of the nominees for director listed below: FOR AGAINST ABSTAIN FOR AGAINST ABSTAIN 1(a) MARY BAGLIVO 1(g) G. PENNY McINTYRE 1(b) BRENT CALLINICOS 1(h) AMY McPHERSON 1(c) EMANUEL CHIRICO 1(i) HENRY NASELLA 1(d) JUAN R. FIGUEREO 1(j) EDWARD R. ROSENFELD 1(e) JOSEPH B. FULLER 1(k) CRAIG RYDIN 1(f) V. JAMES MARINO 1(l) JUDITH AMANDA SOURRY KNOX 2. Approval of the advisory resolution on executive compensation. FOR AGAINST ABSTAIN 3. Approval of the amendment to our Certificate of Incorporation to eliminate the requirement of an 80% supermajority vote for stockholders to approve certain transactions with certain stockholders. FOR AGAINST ABSTAIN 4. FOR the approval of the amendment to our Certificate of Incorporation to eliminate the requirement of an 80% supermajority vote for stockholders to amend our By-Laws. FOR AGAINST ABSTAIN 5. Ratification of auditors. FOR AGAINST ABSTAIN 6. In their discretion, the Proxies are authorized to vote upon such other business as may properly come before the meeting. THIS PROXY WHEN PROPERLY EXECUTED WILL BE VOTED AS DIRECTED OR, IF NO DIRECTION IS GIVEN, WILL BE VOTED AS THE BOARD RECOMMENDS. Date ________________________________________________________, 2019 Note: The signature should agree with the name on your stock certificate. If acting as executor, administrator, trustee, guardian, etc., you should so indicate when signing. If the signer is a corporation, please sign the full corporate name, by duly authorized officer. If shares are held jointly, each stockholder named should sign.
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