The company wrote in the filing that Plank “believes he should be compensated for his services based primarily on our company’s performance through our annual incentive plan.”

 

For 2008, the eligible bonus amount for Plank ranged from $368,500 to $1,474,000, based on a sliding scale tied to the level of income from operations as a percentage of net revenues, up from a range of $250,000 to $1,000,000 (or 50%-200% of base salary paid during the year) for 2007.  Based on Plank's voluntary reduction in base salary, the Compensation Committee determined that his 2008 maximum bonus level should be increased by $474,000, equal to the amount by which he reduced his salary, based on their belief that his “continued leadership and superior performance was a critical part of Under Armour’s ongoing strong performance and that the maximum compensation for which he was eligible should not be decreased from 2007 to 2008.”

 

The impact of UA share prices is certainly more painful than the loss of the bonus and reduced base salary for Mr. Plank.  Based on his ownership or direct control of 12.5 million shares, the value of his holdings has fallen nearly 63% since the end of 2007, or a value of approximately $204 million at market close on Mar. 24, 2009, compared to $546 million at market close on Dec. 31, 2007.

 

For the new year, Plank has apparently proposed a salary freeze on Under Armour's top executives.