Contract will keep Kathwari at Ethan Allen until 2012
November 20, 2007-- Home Textiles Today,
Danbury, Conn. — Farooq Kathwari, chairman, president and CEO of Ethan Allen since 1988, has signed a new contract that will keep him in the post until at least 2012.
According to a filing with the Securities and Exchange Commission, Kathwari’s new deal calls for a base salary of $1.13 million annually, slightly more than the $1.1 million he received during the company’s most recent fiscal year ended June 30.
He’s also entitled to an annual bonus based on operating earnings. In addition, he received options to purchase 150,000 shares of common stock at $34.03 per share and will receive additional options at various dates throughout the life of the contract.
Kathwari already is the company’s largest shareholder with 3.97 million shares, or 12.83% of the total, as of June 30.
The new agreement expires July 1, 2012, but there are two automatic one-year renewals unless Kathwari or Ethan Allen gives notice of non-renewal nine months prior to the expiration date.
(Reported by Larry Thomas, business editor of Furniture Today, an HTT sister publication.)