Kontoor Brands enters separation agreement with former COO Thomas Waldron

Kontoor Brands, Inc. (NYSE:KTB) announced it has entered into a separation agreement with Thomas E. Waldron, the company’s former Executive Vice President and Chief Operating Officer. According to a press release statement based on a filing with the Securities and Exchange Commission, the agreement was executed on August 31, 2025.

Mr. Waldron, who stepped down from his executive roles on July 29, will remain with Kontoor Brands in a non-executive capacity through September 30, 2025, to assist with the transition of his responsibilities. The transition comes at a time when the company’s stock trades at $80.24, with InvestingPro analysis indicating the stock is currently in overbought territory.

Under the terms of the agreement, Mr. Waldron will receive $1,350,000, equivalent to eighteen months of his base salary, paid in biweekly installments over an eighteen-month period beginning on the separation date. He will also be eligible for a pro rata share of any annual cash incentive program award for 2025, subject to actual performance results, with payment expected when such awards are finalized in early 2026.

Mr. Waldron will continue to be eligible for performance-based and time-based restricted stock units granted in 2025, with vesting and earning determined by the original terms. Restricted stock units granted prior to 2025 will be treated according to their retirement provisions.

Additional benefits include financial counseling during the separation period, executive physical exams for 2025 and 2026, and eighteen months of outplacement assistance. If Mr. Waldron elects to continue health benefits under COBRA, he will receive coverage at a reduced premium, with Kontoor Brands covering the employer portion during the severance period or until he obtains similar coverage elsewhere.

The agreement also contains provisions restricting Mr. Waldron from disclosing confidential information, competing with the company, soliciting customers, or soliciting employees.

This information is based on a press release statement and details disclosed in the company’s Form 8-K filing with the SEC.

In other recent news, Kontoor Brands reported a strong performance in Q2 2025, surpassing both earnings and revenue expectations. The company’s earnings per share came in at $1.33, significantly higher than the anticipated $0.87, representing a 52.87% surprise. Revenue also exceeded forecasts, reaching $658 million compared to the expected $625.96 million. These results highlight the company’s robust financial health and operational efficiency. In addition, UBS raised its price target for Kontoor Brands to $99 from $92, maintaining a Buy rating. The investment firm attributed this adjustment to Kontoor’s strengthening position in the denim category and its potential for long-term growth as it expands into new categories and markets. These developments reflect a positive outlook for Kontoor Brands among analysts and investors alike.

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