Bernard McCracken
LANDS' ENDAbout Bernard McCracken
Bernard McCracken is Chief Financial Officer of Lands’ End (appointed September 14, 2023) and age 63 as disclosed in the latest 10-K. He previously served as Interim CFO (January 2023–September 2023) and, before that, as Vice President, Controller and Chief Accounting Officer since April 2014 . Company performance during his CFO tenure shows revenue down year-over-year while EBITDA increased; details below.
Company performance last two fiscal years:
| Metric | FY 2024 | FY 2025 |
|---|---|---|
| Revenues ($USD) | $1,472.5M | $1,362.9M |
| EBITDA ($USD) | $74.7M* | $94.1M* |
*Values retrieved from S&P Global.
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Lands’ End | Chief Financial Officer; Treasurer; Principal financial and accounting officer | Sep 2023–present | — |
| Lands’ End | Interim Chief Financial Officer; VP, Controller & Chief Accounting Officer | Jan 2023–Sep 2023 (Interim CFO); Apr 2014–Sep 2023 (VP CAO) | — |
| The Children’s Place | VP Corporate Controller/Business Transformation Office; Sr Director Special Projects; Sr Director Accounting | 2004–2014 | — |
| Footstar (Meldisco Division) | VP Finance (divisional CFO); Assistant Controller | 1998–2003 | — |
| Deloitte & Touche LLP | Consultant/Manager, Enterprise Risk Services—Retail Internal Audit | 1997–1998 | — |
| The Leslie Fay Companies | Divisional Controller | 1994–1997 | — |
| Loehmann’s Inc. | Assistant Controller | 1987–1994 | — |
External Roles
- No public company directorships disclosed for McCracken in Lands’ End filings reviewed (DEF 14A/10-K executive officer sections) .
Fixed Compensation
| Component | FY 2024 Terms | Notes |
|---|---|---|
| Base Salary | $525,000 | Maintained in 2025 DEF 14A |
| Target Bonus (AIP) | 75% of base salary | Remains 75% in 2025 DEF 14A |
| Target Long-Term Incentive (LTI) | 110% of base salary (beginning FY 2024) | 110% confirmed in 2025 DEF 14A |
Multi-year compensation (Summary Compensation Table):
| Year | Salary ($) | Stock Awards ($) | Non-Equity Incentive ($) | All Other ($) | Total ($) |
|---|---|---|---|---|---|
| 2023 | $529,122 | $169,748 | $309,536 | $9,088 | $1,017,494 |
| 2024 | $525,000 | $546,648 | $275,625 | $11,462 | $1,378,735 |
Performance Compensation
Annual Incentive Plan (AIP) design and outcomes:
| Fiscal Year | Metric | Threshold | Target | Maximum | Actual Outcome | Payout |
|---|---|---|---|---|---|---|
| 2023 | Adjusted EBITDA (quarterly and annual) | — | — | — | FY23 AIP EBITDA: Q1 $19.5M (9%); Q2 $15.8M; Q3 $17.3M; Q4 $31.7M (25%); Full Year $84.3M (44%); Total payout % 78% | 78% of target |
| 2024 | AIP EBITDA net of inventory charge | $60M (50% payout) | $71M (100%) | $91M (200%) | Achieved above threshold and below target | 70% of target; McCracken paid $275,625 |
Long-Term Incentives (FY 2024 grants):
| Award Type | Metric(s) | Weighting | Target Shares (McCracken) | Grant Date | Vesting / Performance Period | Valuation |
|---|---|---|---|---|---|---|
| Financial PSUs | Net Debt / Adjusted EBITDA ratio (end of period); Average ROIC (FY 2024–2026) | 50% + 50% | 20,424 shares | 4/1/2024 | Vests post FY 2026 upon committee certification | $230,995 grant-date fair value |
| Stock Price PSUs | Average closing stock price achieved over any 20 consecutive trading days during grant→FY 2026 | 20% of LTI value | 10,212 shares | 4/1/2024 | Threshold 33% payout; target 100% (max = target) | $84,657 grant-date fair value |
| Time-based RSUs | Time-based vesting | 40% of LTI value (company LTI split 50% PRSU, 50% RSU in 2023; FY 2024 mix per tables) | 20,424 shares (All Other Stock Awards) | 4/1/2024 | Standard time-based vesting per plan (not individually detailed) | $230,995 grant-date fair value |
Vesting and realized value in FY 2024:
| Executive | RSUs Vested (#) | Value Realized ($) |
|---|---|---|
| Bernard McCracken | 4,505 | $50,941 |
Prior performance-based award outcome:
- 2022 LTIP PRSUs (financial goals covering FY 2022–FY 2024): No shares were earned; awards expired unvested .
Equity Ownership & Alignment
Beneficial ownership (as of March 28, 2025):
| Holder | Shares Beneficially Owned | % of Outstanding |
|---|---|---|
| Bernard McCracken | 30,129 | * (less than 1%) |
Outstanding equity awards (as of Jan 31, 2025; closing price $12.45 per share) — McCracken:
| Category | Shares/Units | Market Value ($) | Notes |
|---|---|---|---|
| Time-based RSUs (unvested) | 1,864 | $23,207 | — |
| Time-based RSUs (unvested) | 6,965 | $86,714 | — |
| Time-based RSUs (unvested; FY 2024 grant) | 20,424 | $254,279 | — |
| Performance RSUs (unearned; 2022 LTIP) | 1,864 | $23,207 | Expired unvested |
| Performance RSUs (unearned; FY 2023–2025 goals) | 4,643 | $57,805 | Financial PSUs |
| Performance RSUs (unearned; FY 2024–2026 goals) | 10,212 | $127,139 | Financial/Stock Price PSUs |
| Performance RSUs (unearned; stock price PSU) | 3,370 | $41,956 | Stock price PSU |
Policies on hedging/pledging:
- LE’s Insider Trading Policy prohibits short sales, hedging (e.g., collars, swaps), holding company stock in margin accounts, or pledging company securities as loan collateral .
Employment Terms
Core employment arrangement (as CFO):
| Term | Detail |
|---|---|
| Base Salary | $525,000 |
| AIP Target Bonus | 75% of base salary |
| LTI Target | 110% of base salary (from FY 2024 onward) |
| Non-compete | 12 months |
| Non-solicit | 18 months |
| Non-disparagement | 2 years |
| Confidentiality | 2 years |
| Severance (no cause/good reason) | 12 months base + Average Bonus; health coverage; outplacement; unused vacation |
| Severance (change in control within 2 years) | 2× (base + Average Bonus) over 24 months; higher-of target or Average Bonus used; pro-rata bonus if termination in last six months of fiscal year |
Potential payments upon termination (as of Jan 31, 2025, using $12.45/share for equity acceleration):
| Scenario | Severance Pay ($) | Bonus Payment ($) | Medical/Welfare ($) | Vacation ($) | Outplacement ($) | Equity Acceleration ($) | Total ($) |
|---|---|---|---|---|---|---|---|
| Good Reason | $525,000 | — | $14,183 | $40,385 | $7,725 | — | $587,293 |
| Without Cause | $525,000 | — | $14,183 | $40,385 | $7,725 | — | $587,293 |
| Disability | — | $393,750 | — | — | — | $171,399 | $565,149 |
| Death | — | $393,750 | — | — | — | $171,399 | $565,149 |
| Change in Control (termination) | $525,000 | — | $14,183 | $40,385 | $7,725 | $907,642 | $1,494,935 |
Notes:
- “Average Bonus” generally defined as average of prior two years; for CoC cases, higher of target or Average Bonus is used for McCracken .
- Health coverage continuation aligned with severance period; COBRA rules apply if joining other coverage .
Investment Implications
- Pay-for-performance calibration: AIP paid 70% of target in FY 2024 (below target), and FY 2023 paid 78% of target, indicating a disciplined payout framework tied to EBITDA execution . LTI PSUs are linked to leverage (Net Debt/EBITDA) and ROIC over FY 2024–2026, and stock-price PSUs require sustained price levels—aligning equity value creation with balance sheet strength and returns .
- Retention and selling pressure: McCracken holds meaningful unvested RSUs/PSUs across 2024–2026 windows with no stock options; FY 2022 PRSUs expired unvested, while FY 2024 grants vest post-FY 2026, suggesting staggered future vesting events rather than near-term option exercises. FY 2024 RSU vesting was 4,505 shares ($50,941), a modest flow relative to overall beneficial ownership .
- Alignment and risk controls: Beneficial ownership is <1% of outstanding; hedging and pledging are prohibited by policy, reducing misalignment risk from derivatives or collateralization . Severance economics are moderate (12 months base + Average Bonus, or 2× under CoC) with standard restrictive covenants, limiting abrupt departure risk while avoiding outsized golden parachutes .
- Execution track record context: Company revenue fell y/y while EBITDA increased under his CFO tenure, consistent with focus on profitability and leverage metrics prioritized in incentive design; continued monitoring of PSU performance (Net Debt/EBITDA, ROIC) through FY 2026 is key to assessing cumulative value creation .
