Kevin Plank cements commitment to Under Armour
18/06/2015
Wishing to change the way shares are divided to keep control, he says his “financial success does not come from my compensation as CEO, but is driven almost entirely by the performance and success of our stock”.
When Under Armour went public in 2005, it created a dual-class stock structure under which Mr Plank owns Class B shares that have greater voting power and give him control over significant decisions.
The structure is set to end when he owns less than 15% of total Class A and Class B shares and the company is nearing the “15% sunset provision”.
“The board has agreed that maintaining our founder-led approach is in the best interests of Under Armour and all of its stockholders,” said Mr Plank. He has signed a non-compete agreement that will last for five years if he were to leave.
But he insisted: “I love Under Armour, and I would like stockholders to know that I am very committed to our company.
“Since I sold my first T-shirt out of my grandmother's basement in Georgetown nearly 20 years ago, Under Armour has been my passion. I am only 42 years old, and there is much more to do in the years to come.”
Kevin Plank is the Innovator in the current issue of WSA, available to download now.
Share this story:
