Reuters: Regulatory News: UPDATE 1-American Apparel extends CEO Charney's tenure

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UPDATE 1-American Apparel extends CEO Charney's tenure Mar 27th 2012, 22:06 March 27 | Tue Mar 27, 2012 6:06pm EDT March 27 (Reuters) - Clothing and accessories retailer American Apparel Inc announced that its Chairman and Chief Executive Dov Charney has entered into a new employment agreement with the company for an initial term of three years. The term starts on April 1 and will automatically extend for successive one-year periods unless terminated by the company, American Apparel said in a filing. The company has struggled with problems ranging from a long-running sales slump and financial instability to controversies associated with Charney -- its chairman and CEO since 2007 -- who has been in the news over a lawsuit that claimed he kept a former employee as a "sex slave." Earlier this month, however, the company secured a new credit line from George Soros-backed Crystal Financial and said there was no longer any substantial doubt about its ability to continue as a going concern. Under the new agreement, Charney will receive a minimum base salary of $800,000 per year. Charney will also be eligible to receive an annual incentive compensation with a target payment equal to 150 percent of his base salary. The agreement also provides that Charney will be granted 7.5 million of the company's common stock upon the achievement of specified EBITDA-related performance goals.

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