Lawyer and MBA, comes from Nike and previously Volcom. By all accounts looks like a top recruit. Will be interesting to see the compensation package. Look for an 8-K shortly. I would say this swift move means the company is now not for sale, but a turnaround is imminent. Guys this good don't leave plum jobs with industry icons like Nike without really believing in the 'story' (as Rick Alden called it). Back to the 'teens' this time next year. Mark it.
Now just to clean up the board of directors. It will be interesting as you said Charles how lucrative a compensation package they dangled to Darling. That's all we need is another dilution of stock... Also, will Alden truly remain active in the running of the company?
But, in theory, great move and the market will like hearing a pedigreed Nike executive running the mop any now.
All they need to do now to right this ship is get rid of Jeff Kearl. Chairman of the Board during the bungling of the company and cashed out virtually all his shares on the way down. Alden should take over as chairman. Don't be surprised if this happens soon. His role with the company has not been defined other than 'full-time'.
Alden is definitely the creative force behind the company. Remember he grew sales at a blistering pace when the products were functionally terrible. Andrus came in and concentrated on technology but sales fell off the map without the Alden marketing. Now we have awesome products with the top marketing guy in the space, being Alden. Add in a credible CEO (nobody wants Alden on another earnings call although he is very entertaining) and this thing is off to the races.
The market will like the Nike and Volcom history and also the fact that the move happened alot quicker than anybody was expecting and finally that Alden is staying on full-time. I think they nailed this one and although the turnaround wont happen overnight, this is a huge catalyst going forward.
Here it is:
Upon the commencement of his employment, Mr. Darling will receive an annual salary of $450,000 and be eligible to participate in the Company's annual bonus program, with a target bonus of 100% of his base salary and a bonus opportunity range of 37.5% to 150% of his base salary. Mr. Darling will also be eligible to participate in the Company's Amended and Restated 2011 Incentive Award Plan, and will receive an inaugural, one-time equity grant valued at approximately $2,000,000, comprised of stock options and restricted stock units. The stock options and restricted stock units will vest in equal annual increments over a four year period, subject to Mr. Darling's continued service with the Company through the applicable vesting dates.
Looks like Rick Alden is staying on full time. Definitely a powerhouse team being built here. Very interesting development and I think the market will finally react positively to this news. Should see at least some commentary from analysts regarding this move.
I will be buying any dips tomorrow to solidify my long position which I plan to hold through the entire turnaround well into 2014. Market is forward looking and any hint of a successful turnaround and this will move up as fast as it moved down. I did call RDN the 'turnaround story of 2013' when it was under $3 a few months ago, documented on Seeking Alpha. I see a similar rapid move here once the numbers start rolling in better than the dismal expectations that are priced into the stock. I don't expect any major move for awhile though but this can easily trade back up to the $7s without much of anything.