![Kevin Plank](https://cdn.statically.io/img/www.sportico.com/wp-content/uploads/2024/06/GettyImages-1690022366-e1717800234235.jpg?w=1280&h=721&crop=1)
Under Armour CEO Kevin Plank will receive at least $26 million if he helps the company’s stock reach $13 in the next four years. Should that happened, his total compensation will jump thanks to his 53 million shares of the company.
According to a Thursday SEC filing, Plank, who returned as the company’s CEO in March, will receive an annual base salary of $900,000.
Additionally, he is entitled to a performance-based restricted stock unit award for two million shares of the Company’s Class C Stock (the PSU Award) and a time-based restricted stock unit award for $840,000 of the Company’s Class C stock. However, 80% of Plank’s compensation will be tied to $UAA reaching $13 by March 31, 2028. If it is not met, the PSU Award will be fully forfeited.
Thursday’s release only provides some details for Plank’s 2025 earnings and frames his compensation to highlight that it mostly depends on a big stock price increase.
“This is a generous compensation package,” David Swartz, senior equity analyst at Morningstar, said in an email. “The PSU award would be worth $26 million if the stock doubles in less than four years.”
Under Armour’s stock hit an all-time high of $52.05 on September 17, 2015. Since then, it has dropped more than 87%, and closed at $6.91 on Friday. Plank currently owns 53.8 million Under Armour shares, according to S&P Global Market Intelligence. A $6 increase in Under Armour’s stock to $13 would bump the value of those holdings from ~$370 million to $700 million.
“When he was the CEO previously, his salary was famously only $26,000—although this was always misleading,” Swartz said.
The company announced Plank’s return as CEO after Stephanie Linnartz stepped down. Plank founded Under Armour in 1995 and served as CEO and chairman starting in 1996. He was also president from 1996 to July 2008 and from August 2010 to July 2017. Plank stepped down as CEO in October 2019.
During last month’s earnings call, the Baltimore-based sportswear maker announced a grim outlook for 2025, reporting a low-double-digit percentage sales drop in its new fiscal year, including a 15%-17% decline in North America sales and restructuring plans. Plank did not mention how many jobs would be affected by the restructure but said the layoffs would cost between $70 million and $90 million, with most used for employee severance packages.
“It is certainly true that shareholders are looking for results given the terrible performance of the stock in the last few years,” Swartz said. “At any rate, Plank is a major shareholder and has always shown a preference for being paid in stock in one way or another.”
–with assist from Kurt Badenhausen and Eben Novy-Williams.