Harmit Singh
LEVI STRAUSS &About Harmit Singh
Harmit Singh is Executive Vice President and Chief Financial and Growth Officer at Levi Strauss & Co. (LEVI), age 61, responsible for finance, corporate strategy, real estate and franchise growth, strategic sourcing, global business services, and oversight of Project Fuel; he served as CFO from 2013–2023 before expanding to his current role in 2023 . FY24 Company performance under the leadership team delivered $6.4B net revenue (+3% YoY), adjusted EBIT margin expansion, adjusted diluted EPS of $1.25, and $671M in adjusted free cash flow; the Company also showed strong pay‑versus‑performance linkages with Adjusted EBIT of $649.9M and TSR indexed at 100.01 for 2024 versus 51.39 for the peer index, and >99% say‑on‑pay approval in 2024 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Levi Strauss & Co. | EVP & CFO; EVP & Chief Financial and Growth Officer | 2013–2023; 2023–present | Leads finance, strategy, sourcing, GBS, and productivity (Project Fuel) |
| Hyatt Hotels Corporation | EVP & CFO | 2008–2012 | Led global finance, reporting, planning for branded hospitality portfolio |
| Yum! Brands (Yum Restaurants International) | SVP & CFO; various global leadership roles | Not disclosed | Global finance leadership for international restaurants; scaled multi‑brand operations |
| American Express (India & Area Countries) | Various financial roles | Not disclosed | Regional financial management and control experience |
External Roles
| Organization | Role | Years | Committee/Notes |
|---|---|---|---|
| The AZEK Company | Director | Current | Compensation Committee member |
| OpenText Corporation | Director | 2018–2022 | Audit Committee member |
| Buffalo Wild Wings Inc. | Director | 2016–2018 | Audit Committee Chair until company was sold |
Fixed Compensation
| Metric | FY2022 | FY2023 | FY2024 |
|---|---|---|---|
| Base Salary ($) | 917,558 | 992,000 | 1,059,327 |
| AIP Target (% of Salary) | Not disclosed | Not disclosed | 100% |
| Actual AIP Bonus ($) | 1,113,600 | 544,000 | 1,209,500 |
Performance Compensation
Annual Incentive Plan (AIP) – FY2024 Design and Outcome
| Metric | Weighting | Target | Actual Payout % | Measurement/Vesting |
|---|---|---|---|---|
| Adjusted EBIT | 50% | $640–$650M (FX‑plan basis) | 124% | FY2024 one‑year performance period |
| Net Revenues | 35% | $6,282–$6,374M (FX‑plan basis) | 124% | FY2024 one‑year performance period |
| Cash Conversion Cycle | 15% | 113 days | 124% | FY2024 one‑year performance period |
| Individual Performance | n/a | Objectives set by CEO; assessed rigorously | 100% for Singh | FY2024 one‑year performance period |
Resulting AIP bonus for Harmit Singh: $1,209,500 for FY2024 .
Long‑Term Incentives (LTI) – Mix and 2024 Grants
LTI mix for executives in FY2024: 25% SARs, 25% RSUs, 50% PRSUs; SARs vest over 4 years (10‑year term), RSUs over 4 years, PRSUs cliff‑vest after 3 years .
- PRSUs (FY2024 cycle): 85% based on three‑year relative TSR vs expanded retail peer group (payout 0–200%), 15% based on three‑year average ROIC (payout 0–200%); performance period FY2024–FY2026 .
| 2024 Grant Type | Shares/Units | Grant Date | Exercise Price | Grant‑Date Fair Value ($) |
|---|---|---|---|---|
| PRSUs (target) | 78,517 | 1/29/2024 | n/a | 1,359,874 |
| RSUs | 39,258 | 1/29/2024 | n/a | 606,536 |
| SARs | 95,419 | 1/29/2024 | $16.58 | 624,994 |
FY2024 total stock awards and option awards (from Summary Compensation Table): Stock awards $1,966,410; Option awards $624,994 .
Prior PRSU Cycle (FY2022–FY2024) – Achievement and Vesting
| Metric/Outcome | Target PRSUs | Payout % | Vested PRSUs |
|---|---|---|---|
| 3‑Year Relative TSR plus D&I modifier (legacy design) | 59,523 | 71.0% total (TSR payout 61.0% + 10% D&I) | 42,261 |
Equity Ownership & Alignment
Beneficial Ownership (as of Feb 1, 2025)
| Security Class | Shares Beneficially Owned | % of Class | Notes |
|---|---|---|---|
| Class A Common | 100,698 | <1% | Includes 25,475 shares acquirable via SARs within 60 days |
| Class B Common | 19,528 | <1% | — |
- Executive stock ownership guidelines require achievement within five years of hire/promotion; all executives are in compliance .
- Company policy prohibits hedging and pledging of Company stock; executives may not hold LEVI securities in margin accounts or pledge them as collateral .
Outstanding Equity and Vesting Schedules (selected items at FY2024 year‑end)
| Instrument | Status | Key Terms |
|---|---|---|
| SARs (selected tranches) | 22,069 unexercisable at $17.79 (exp. 1/26/2033); 95,419 unexercisable at $16.58 (exp. 1/28/2034); plus prior grants with portions exercisable/unexercisable | 25% annual vesting cadence; e.g., 2024 SARs vest 25% on 1/24/2025 then annually x3 |
| RSUs (unvested) | 2024 grant 39,258; 2023 grants 140,528 and 26,349; 2022 grant 14,880; 2021 grant 5,855 | 25% on each of 1/24/2025, 1/30/2026, 1/29/2027, 1/28/2028 for FY2024 grant |
| PRSUs (targets) | 2024 grant 66,739 and 11,778 (target tranches); 2023 140,528/59,724/10,540; 2022 59,523 | 2024 PRSUs cliff‑vest on 1/29/2027, subject to performance |
Upcoming vesting events (potential trading pressure windows): FY2024 RSUs 25% scheduled on 1/24/2025, with subsequent tranches in 2026–2028; FY2024 SARs first 25% on 1/24/2025; FY2024 PRSUs cliff on 1/29/2027 (subject to performance certification) .
Employment Terms
Senior Executive Severance Plan and CIC Economics (Singh)
| Scenario (as of 12/1/2024) | Severance Cash | Equity Treatment | COBRA/Life Insurance |
|---|---|---|---|
| Termination w/o Cause or Resignation for Good Reason | $2,747,000 | Continued vesting of time‑based awards held >12 months during 78‑week severance; PRSUs remain subject to plan | $22,030 |
| Change‑in‑Control Termination (within 18 months) | $5,309,500 (lump sum incl. AIP target) | Full vesting if awards not assumed (PRSUs at target); alternative value if assumed ($6,090,607 vesting) | $22,030 |
| Death/Disability | — | Full vesting of unvested time‑based equity awards | — |
- Company clawback policy compliant with NYSE listing standards, mandates recovery of erroneously awarded compensation for three fiscal years after any restatement; applies regardless of misconduct .
- Insider trading policy requires pre‑clearance; prohibits short sales, options, hedging, margin accounts, and pledging .
- Severance framework: 78 weeks of base for NEOs; increased periods and lump‑sum in CIC; continued vesting for time‑based awards held >12 months; subsidized benefits up to 18 months .
Compensation Structure Analysis
- 2024 cash incentive increased materially ($1.21M vs $0.54M in 2023), driven by strong Company AIP outcomes (124% payout) and 100% individual assessment, reinforcing at‑risk pay linkage .
- Equity mix remains performance‑heavy (50% PRSUs) with multi‑year TSR/ROIC metrics; 2024 stock awards grant‑date fair value declined to $1.97M from $7.10M in 2023, reducing equity inflation risk while keeping long‑term alignment .
- No hedging/pledging, no option repricing, no dividends on unearned performance shares; clawback in place—best‑practice guardrails against misalignment .
- Peer benchmarking uses a broad apparel/retail set; Committee does not target specific percentiles and uses Semler Brossy as independent consultant .
Compensation Peer Group (benchmarking references)
Abercrombie & Fitch; American Eagle Outfitters; Burberry; Capri; Carter’s; Clorox; Columbia; Deckers; Foot Locker; Gap; Guess?; Hanesbrands; Kontoor Brands; Lululemon; Mattel; NIKE; Nordstrom; PVH; Ralph Lauren; Tapestry; Under Armour; Urban Outfitters; VF; Victoria’s Secret; Williams‑Sonoma (and expanded TSR peer set including Adidas, Inditex, H&M, etc.) .
Say‑on‑Pay & Shareholder Feedback
2024 say‑on‑pay received over 99% approval, indicating strong shareholder support for program design and pay‑for‑performance alignment .
Investment Implications
- Alignment: High proportion of at‑risk compensation tied to AIP (Adjusted EBIT, Net Revenues, CCC) and PRSUs (relative TSR, ROIC) supports pay‑for‑performance and long‑term value creation; clawback and no‑pledging policies reduce governance risk .
- Retention and supply overhang: Significant unvested RSUs and SAR tranches through 2028 and PRSUs cliffing in 2027 create ongoing retention hooks; near‑term scheduled vest dates (e.g., 1/24/2025) may be monitoring points for insider sales activity windows .
- Change‑in‑control economics: Defined CIC cash multiples and equity acceleration at target (if not assumed) could be material (severance $5.31M; equity vesting up to $10.14M assumptions), relevant in event‑driven scenarios .
- Program credibility: Strong 2024 financial outcomes (net revenue +3%, adjusted EBIT margin expansion, adjusted EPS $1.25), 124% AIP funding, and >99% say‑on‑pay vote indicate robust shareholder acceptance and execution consistency under the current finance leadership .