NIWOT, Colo.—The new chief executive of Crocs Inc., maker of colorful plastic clogs, will have an $850,000 salary, get a $350,000 signing bonus and receive stock valued at nearly $550,000, the company reported Monday.
John Duerden was named CEO of the Niwot-based company last week following news that Ron Snyder, who held the position and was president, was resigning. Niwot is northeast of Boulder.
Duerden was CEO of Reebok International in the early 1990s and later founded the Chrysalis Group, a consulting company focused on brand development and renewal, the Daily Camera reported on its Web site.
Crocs (Nasdaq: CROX, $1.14) recently has experienced losses, declining revenues and layoffs that the company attributes to a weakened retail market and slower consumer spending.
Company officials said in a filing Monday with the Securities and Exchange Commission that Snyder will resign March 16 for personal reasons and is not stepping down because of any disagreement with Crocs.
According to the filing, Duerden can take part in an incentive plan in which he could get a bonus of one to two times his salary, meaning his compensation potential in the first year is around $3 million in salary and bonuses.
On Feb. 24, Crocs granted Duerden 400,000 shares of its common stock, which had a closing price of $1.37, the filing said. Duerden will have the option to buy 400,000 more shares at the $1.37 value. Twenty-five percent of the restricted stock and options will vest on Feb. 24, 2010, and the rest will vest in 36 equal monthly installments.
In filings with the SEC, company officials said its executive compensation was competitive with that of its “market-brand peers,” such as K-Swiss Inc. and Timberland Co.
In 2007, Snyder had a salary of $800,000, stock awards of $402,584, option awards of nearly $2.55 million, non-equity incentive plan compensation of $3.2 million and other compensation of $19,325, which included health-care benefits and golf club membership fees, according to the SEC.
His total compensation for 2007—including stock options and incentives that had not vested—was $6.97 million.
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Information from: Daily Camera,
