Bob Ranftl
RALPH LAURENAbout Bob Ranftl
Bob Ranftl, age 53, has been Chief Operating Officer (COO) of Ralph Lauren since April 2025, overseeing Global IT, Digital, Transformation, Logistics, Real Estate, Architecture & Store Design, and Licensing. He joined Ralph Lauren in 2015 after serving as CFO of Asia Pacific at VF Corporation and holds a B.S. from Johnson State College (Vermont) . Company performance context: Fiscal 2025 revenue was $7,145.1 million (constant currency) and adjusted operating profit margin was 14.3%, both above plan, with strong recent TSR outperformance versus the PSU comparator group and the S&P 500 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Ralph Lauren | COO, Asia Pacific (Hong Kong) | 2015–2017 | Built regional operating capabilities |
| Ralph Lauren | COO, International (APAC, Europe, Latin America) (Geneva) | 2017–2019 | Integrated multi-region operations |
| Ralph Lauren | COO, Commercial (London) | 2019–2022 | Drove commercial operating model |
| Ralph Lauren | Regional CEO, North America | 2022–2025 | Returned North America to growth; expanded DTC incl. Canada; repositioned wholesale |
| VF Corporation | CFO, Asia Pacific | Pre‑2015 | Regional finance leadership |
External Roles
None disclosed in SEC filings or company documents .
Fixed Compensation
| Component | Terms | Notes |
|---|---|---|
| Base Salary | $1,000,000 annually | Employment Agreement dated Jan 20, 2025 |
| At‑Will Employment | Yes; 90‑day notice if initiated by executive | Place of performance North Carolina (with required travel) |
| Relocation Eligibility | Optional relocation to NYC metro with benefits per policy | Subject to standard relocation agreement |
| International Tax Services | Company-paid professional services related to prior international assignments | Continued coverage per term sheet |
Performance Compensation
| Incentive Type | Metric | Weighting | Target/Structure | Actual FY25 Result | Payout Mechanics |
|---|---|---|---|---|---|
| Annual Bonus (EIP) | Total Company Revenue | 40% | Target set by Talent Committee; bonus target = 100% of salary; max 200% (±10% strategic modifier) | $7,145.1M constant currency; 105% of target | Strong results yielded NEO max payout cap 200% of target in FY25 program |
| Annual Bonus (EIP) | Adjusted Operating Profit Margin | 40% | As above | 14.3% constant currency; 107.4% of target | Contributed to max payout cap |
| Annual Bonus (EIP) | Strategic Growth Accelerators Revenue (Women’s Apparel, Outerwear, Handbags & SLG) | 10% | YoY growth vs FY24 | +15.4% YoY; above target | Factor in bonus calculation |
| Annual Bonus (EIP) | Adjusted SG&A Expense (% of revenue, ex Mktg & Adv) | 10% | Efficiency focus | Slightly below target | Moderated payout |
| Annual Bonus Modifier | Citizenship & Sustainability Scorecard | ±10% modifier | Met/exceeded → +10% upward adjustment | Achieved | Applied to bonus (subject to 200% cap) |
| Long‑Term Incentive | PSUs – 3‑year Relative TSR vs comparator group | Programmatic | Payout based on relative TSR | Outperformed comparator group | Above‑target payouts |
| Long‑Term Incentive | PSUs – 3‑year Cumulative Adjusted ROIC | Programmatic | Payout based on ROIC | Significantly above target | 200% of target payouts |
| LTI Grant Value (Beginning FY26 cycle) | Equity under 2019 LTSIP | — | Target grant value $2,250,000 | — | Subject to Talent Committee approval annually |
Note: Ranftl’s EIP participation for Fiscal 2026 follows Company EIP rules: bonus target 100% of fiscal year salary earnings, maximum 200% including strategic modifier; based 100% on total Company performance . FY25 metric actuals reflect company-wide outcomes and inform program design alignment .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial Ownership | 12,035 Class A shares held directly; issued as RSUs under 2019 LTSIP (Form 3) |
| Ownership Guidelines (NEOs) | Multiple of salary approach; typical targets: CEO 6x, other NEOs 3x; 50% hold‑and‑retain of net shares until target met |
| Anti‑Hedging/Pledging | Company policy prohibits pledging, hedging, and short selling for directors, officers, employees |
| Hold Requirements | 50% of net shares from RSU vesting and option exercises retained until guideline met |
| Shares Pledged | Not permitted under policy |
| Options Outstanding | Not disclosed for Ranftl; initial Form 3 shows RSUs only |
Employment Terms
| Term | Provision |
|---|---|
| Effective Date as COO | March 30, 2025 |
| Term | At‑will employment; 90 days notice by executive; NC base location |
| Severance (no Cause / Good Reason) | 12 months base salary continuation + lump sum target bonus at end of severance period; continued medical/dental during severance; equity treated per award agreements |
| Change‑in‑Control (Double Trigger) | If terminated without Cause or for Good Reason within 12 months after CoC: lump sum = 2×(current base salary + most recent fiscal year bonus); immediate vesting of unvested options, RSUs, PSUs |
| Clawback | Mandatory recoupment of erroneously awarded incentive-based compensation in event of accounting restatement (NEO policy) |
| Tax Gross‑Ups | Employment agreements do not provide excise tax gross‑ups |
| Restrictive Covenants | Severance/CIC benefits conditioned on compliance with restrictive covenants; Section 409A compliance provisions included |
| Anti‑Pledge/Hedge | Prohibited for all insiders |
Investment Implications
- Pay-for-performance alignment appears robust: bonus metrics tied to revenue, margin, growth accelerators and SG&A, with ESG scorecard modifier; LTI tied to multi‑year TSR and ROIC. FY25 outcomes produced maximum annual bonus payouts and above‑target PSU payouts, indicating strong recent execution against financial and strategic goals .
- Retention risk mitigants: double‑trigger CIC protections and severance economics, continued benefits, and meaningful ongoing equity awards; anti-hedging/pledging and hold‑and‑retain policies reduce near‑term selling pressure and improve alignment with shareholders .
- Execution track record: as North America CEO, Ranftl drove DTC expansion (incl. Canada) and wholesale repositioning to restore growth; as COO he now controls critical enablers (IT, logistics, store design, licensing) that are key to sustaining margin expansion and strategic plan delivery .
- Watchpoints: absence of tax gross‑ups is shareholder‑friendly; equity vesting accelerates under CIC could create event‑driven supply; equity ownership currently modest (initial RSU holdings), so monitoring future grants and any Form 4 activity will be important for assessing selling pressure and alignment .