Tapestry board approves $15 million special equity grant for CEO Joanne Crevoiserat

Published 20/08/2025, 22:14
Tapestry board approves $15 million special equity grant for CEO Joanne Crevoiserat

The board of directors of Tapestry, Inc. (NYSE:TPR), the $20.55 billion luxury goods company whose stock has surged 148% over the past year, approved a one-time special equity grant valued at $15 million for Chief Executive Officer Joanne Crevoiserat, according to a statement released in a SEC filing. According to InvestingPro data, the company maintains impressive gross profit margins of 75.44% and has shown strong financial health metrics.

The grant, approved by the Human Resources Committee on Monday, is split equally between performance-based restricted stock units (PRSUs) and time-based restricted stock units (RSUs). Vesting of the PRSUs is tied to the achievement of a target non-GAAP earnings per share for Tapestry’s fiscal year 2028, while the RSUs will vest on the third anniversary of the grant date.

The special equity grant is subject to more restrictive service requirements than the company’s standard equity awards. It will be forfeited in its entirety if Ms. Crevoiserat retires or voluntarily leaves the company without "Good Reason," or is terminated for cause before the vesting period ends. In the case of involuntary termination without cause or voluntary termination with Good Reason, the award will vest on a pro-rata basis. The grant will fully vest if Ms. Crevoiserat’s employment ends due to death or disability.

The committee stated that the grant was approved after market analysis and internal review, with input from an independent compensation consultant and consultation with the full board. The company noted that this is a one-time award and not part of Ms. Crevoiserat’s regular annual compensation.

Tapestry also disclosed that Ms. Crevoiserat will become eligible for retirement treatment on her existing and upcoming annual equity grants in November 2025, upon reaching age 62 and completing over five years of service.

This information is based on a press release statement included in the company’s recent SEC filing.

In other recent news, Tapestry Inc. reported robust fourth-quarter earnings for 2025, with earnings per share of $1.04, surpassing the forecasted $1.00. The company also exceeded revenue expectations, reaching $1.72 billion compared to the anticipated $1.67 billion. Bernstein raised its price target for Tapestry to $112, citing strong performance in the Coach brand, despite a noted tariff headwind impacting fiscal year 2026 margin guidance. Morgan Stanley (NYSE:MS) maintained an Overweight rating with a price target of $115, showing confidence amid recent stock pressure following the earnings report.

BofA Securities adjusted its price target down to $110 due to increased tariff pressure, which is expected to create a $0.60 headwind to earnings per share. Despite this, Tapestry’s fiscal 2026 guidance suggests an EPS range of $5.30 to $5.45, below consensus estimates. CFRA raised its price target slightly to $96 while maintaining a Hold rating, acknowledging the positive earnings surprise with EPS of $1.04 versus $0.92 in the previous year. These developments highlight the mixed analyst sentiment surrounding Tapestry’s financial outlook amidst tariff challenges.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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