Tommy Hilfiger to set up $12m bonus pool for executives

30 Dec '05

1 min read

Fashion conglomerate Tommy Hilfiger Corporation is setting aside money to pay special bonuses to its top executives who stay with the firm for 180 days, following its acquisition by Apax Partners and the subsequent change at its helm.

The Hong Kong-based clothing maker stated it agreed to set up a $12 million (€10.1 million) bonus pool to 'retain officers and other critical employees during the period leading up to the merger and the transition period thereafter'.

The plan, which entitles top executives like Chief Operating Officer Robert Rosenblatt and Chief Financial Officer Joseph Scirocco to bonuses of $300,000, wants to provide an incentive to complete a successful merger, the group reported.

The retention plan excludes the company's founder and honorary chairman Tommy Hilfiger as well as Chief Executive Officer David Dyer.

The group is also providing for severance payments for executives, who are dismissed or decide to leave for a good reason within 12 months after the change in control.

Earlier this month, the group stated it would sell to Apax Partners for $1.6 billion.

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