Henry Stupp to be CEO of Cherokee Inc
Robert Margolis, Executive Chairman and founder of Cherokee Inc., a leading licensor and global brand management company, announced that Cherokee has entered into an employment agreement with Henry Stupp to be its Chief Executive Officer and a member of its Board of Directors.
Mr. Margolis stated, "Henry's agreement is perfectly aligned with the long-term interests of the Company's shareholders and his commitment to the Company includes a purchase of $2,500,000 of newly issued common stock in Cherokee Inc., including $1,500,000 purchased on August 26th." Concurrent with this announcement, the Compensation Committee has granted to Mr. Stupp an option to purchase an additional 300,000 shares of common stock, the terms of which are described below.
Margolis continued, "Henry has presented us with new and exciting ideas that will further expand upon the Company's successful global network. On behalf of our shareholders, our Board of Directors and our executive team, we look forward to great success under Henry's leadership."
Henry Stupp, CEO of Cherokee Inc., said, "This is the opportunity of a lifetime! I am proud to join the Company that pioneered the 'Retail-Direct' licensing model, first in America through a successful collaboration with Target Corporation, and subsequently with premiere retailers in over thirty countries worldwide. Cherokee, established in 1973, is a top-selling 'family-lifestyle' brand that represents the authentic American lifestyle to a global audience. The financial strength of the Company provides opportunities to grow our portfolio of brands and pursue prudent acquisitions."
Stupp continued, "I especially look forward to collaborating with our retail partners and working with the outstanding management team at Cherokee, including Chief Operating Officer Howard Siegel, and the Company's three regional Presidents."
Born in Montreal, Canada, Mr. Stupp relocated to southern California in 1995. He is one of the original founders of Novel Teez Designs (later known as NTD Apparel), a multi-divisional fashion apparel supplier and market leader for many licensed and branded programs. During his 20+ year tenure with NTD, Mr. Stupp successfully identified, negotiated and introduced over 200 well-known brands and licenses, building a strong reputation as an industry leader.
Cherokee's Compensation Committee approved the grant of stock options to Mr. Stupp as inducement grants outside of Cherokee's 2006 Equity Incentive Plan ("Plan"). This grant of stock options was entered into as an inducement material for Mr. Stupp to enter into employment with Cherokee.
While the stock option grant was made outside of the Plan, the grant is consistent with applicable terms of the Plan, which is available with the Company's SEC filings. The stock option has an exercise price of $18.30 per share, which is equal to the closing price of Cherokee's common stock on the date of approval of the option grant by Cherokee's Compensation Committee.
The option has a term of six (6) years. The option vests in five (5) equal annual installments beginning on January 31, 2012 contingent upon Mr. Stupp's continued service to the Company. Additionally, vesting of half of the shares subject to the option is contingent upon Mr. Stupp's purchase of an additional $1,000,000 worth or shares of common stock on or before January 31, 2011.