Denise Kulikowsky
TAPESTRYAbout Denise Kulikowsky
Denise Kulikowsky, 57, is Chief People Officer at Tapestry (TPR) since October 2023; she holds a B.S. in Psychology from Fordham University and a Master’s in Counseling from the University of Pennsylvania . Under her tenure, Tapestry’s FY25 revenue grew to $7.01B from $6.67B in FY24 (driven by Net Sales, Operating Income, and Gross Margin outperformance in AIP), while EBITDA increased year-over-year; FY25 AIP corporate payout was 189.4% of target, reflecting above-target performance on all three financial metrics . Revenue figures below; EBITDA details below with S&P Global disclaimer.
| Performance Snapshot | FY 2024 | FY 2025 |
|---|---|---|
| Revenues ($USD) | $6,671.2MM | $7,010.7MM |
| EBITDA ($USD) | $1,430.3MM* | $1,571.2MM* |
Values with an asterisk were retrieved from S&P Global.
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Party City Holdings Inc. | Chief Human Resources Officer; Chief People & Administrative Officer | 2018–2023 | Led human capital transformation; administrative oversight across HR and operations . |
| The Estée Lauder Companies Inc. | Vice President, Global Human Resources | 2015–2018 | Global HR leadership supporting brand and talent scalability . |
| Gap Inc. | Senior HR roles | Pre-2015 | Senior HR leadership in specialty retail; talent and organizational development . |
External Roles
No public company board roles disclosed in Tapestry’s proxy biography for Kulikowsky .
Fixed Compensation
| Component | FY 2025 |
|---|---|
| Base Salary | $600,000 |
| Target Annual Incentive (% of Salary) | 70% |
| Target Annual Incentive ($) | $420,000 |
| Actual Annual Incentive Paid | $795,480 (cash, AIP) |
Notes:
- FY26 plan changes approved: salary increase and higher target AIP % for Kulikowsky (specific amounts not disclosed) .
Performance Compensation
Annual Incentive Plan (AIP) – FY 2025 Design and Results
| Metric | Weight | Threshold | Target | Maximum | Actual FY25 | Payout as % of Target |
|---|---|---|---|---|---|---|
| Net Sales (Tapestry) | 35% | $6,503.3MM | $6,845.5MM | $7,016.7MM | $7,024.1MM | 200.0% |
| Operating Income (ex-AIP) | 30% | $1,234.4MM | $1,452.3MM | $1,641.1MM | $1,574.4MM | 165.0% |
| Gross Margin | 35% | 73.3% | 73.8% | 74.1% | 74.9% | 200.0% |
| Weighted Average Payout | — | — | — | — | — | 189.4% |
| AIP Award Calculation (FY 2025) | Target $ | Financial Performance | Operational Modifier | Total Performance | Actual Award |
|---|---|---|---|---|---|
| Denise Kulikowsky | $420,000 | 189.4% | 100% (no adjustment) | 189.4% | $795,480 |
Design features:
- Operational modifier of ±10% based on inclusion/belonging scorecard; FY25 modifier applied at 100% (no change) .
- Leadership AIP metrics focused on Net Sales, Operating Income, and Gross Margin to drive TSR growth .
Long-Term Incentives (LTI) – Grants and Structure
| Grant Type | Grant Date | Shares | Grant Value ($) | Vesting | Performance Metrics |
|---|---|---|---|---|---|
| Stock Options | 8/19/2024 | 27,640 | $333,333 | 25% annually from grant anniversary | |
| PRSUs (Target) | 8/19/2024 | 8,214 | $333,333 | 3-year performance period; vests at end of period | |
| RSUs | 8/19/2024 | 8,214 | $333,333 | 25% annually from grant anniversary |
Additional outstanding awards:
- Hire grants (11/1/2023): Options (exercisable 8,259; unexercisable 24,777) at $26.59, expiring 11/1/2033; RSUs 7,393; PRSUs unearned 19,715 (shown at maximum assumption; performance period incomplete) .
- FY24 grants (8/19/2024): Options 27,640 at $40.58, expiring 8/19/2034; RSUs 8,398; PRSUs unearned 16,797 (maximum assumption; performance period incomplete) .
PRSU performance framework:
- Measures: 3-year Cumulative Sales (33%), 3-year Average ROIC (33%), Relative TSR vs defined peer group (33%); payout curve: 0% below threshold, 30% at threshold, 100% at target, 200% at maximum .
- FY23–FY25 PRSU cohort achieved 118.3% weighted payout (Company results above target; TSR component paid at 200%); Kulikowsky was not employed at time of grant and did not receive shares from this cohort .
Market value references:
- RSU and PRSU market values in outstanding awards table use $87.11 closing price on 6/27/2025: RSUs $643,989 (11/1/2023) and $731,585 (8/19/2024); PRSUs unearned shown at maximum assumption $1,717,393 (11/1/2023) and $1,463,171 (8/19/2024) .
Equity Ownership & Alignment
| Category | Detail |
|---|---|
| Beneficial Ownership (8/31/2025) | 18,136 shares; <1% of outstanding (based on 209,068,565 shares) . |
| Options | Exercisable: 8,259 (11/1/2023 grant at $26.59); Unexercisable: 24,777 (11/1/2023) and 27,640 (8/19/2024 at $40.58) . |
| RSUs Outstanding | 7,393 (11/1/2023) and 8,398 (8/19/2024) . |
| PRSUs Outstanding (Unearned) | 19,715 (11/1/2023, maximum assumption) and 16,797 (8/19/2024, maximum assumption) . |
| 2025 Vesting/Exercises | 2,430 shares vested; no option exercises reported for Kulikowsky in 2025 . |
| Hedging/Pledging | Prohibited: no permitted hedging, short sales, or derivative transactions; double-trigger equity acceleration upon CIC; stock ownership policy in place for NEOs . |
| Ownership Guidelines | CEO 5x salary; CFO/COO/Coach Brand President 3x; General Counsel 2x; other execs 1–2x salary. Retention: 50% of net shares until met; compliance reviewed annually . |
Employment Terms
| Provision | Summary |
|---|---|
| Role/Start Date | Chief People Officer; joined October 2023 . |
| Notice Requirement | 6 months’ written notice required for voluntary termination; failure triggers injunction and clawbacks/forfeitures per letter agreement . |
| Non-Compete (Post-Separation) | Discretionary payment up to $600,000 (12 months’ salary) for up to 12-month enforcement period after separation . |
| Good Reason | Not permitted under Kulikowsky’s offer letter . |
| Severance (Without Cause) | 12 months base salary and health benefits continuation under Severance Pay Plan . |
| Change-in-Control Treatment | Double-trigger equity acceleration policy; PRSUs deemed earned at target if CIC prior to end of performance period . |
| LTI Termination/CIC Matrix | Pro-rata vesting at Severance Event; immediate vesting at Death/Disability (options exercisable 5 years); CIC acceleration (PRSUs at target); for voluntary resignation (no Good Reason), unvested awards forfeit; vested options exercisable 90 days . |
| Clawback Policy | Applies to Section 16 officers and broader key executives; recovery for material restatements and misconduct; updated to comply with NYSE/SEC by Dec 1, 2023; LTI agreements include repayment on termination for cause or restrictive covenant breach . |
Incremental benefits table (as of 6/28/2025):
| Termination Scenario | Total ($) | Salary Continuation | Benefits Continuation | Short-Term Incentive | Unvested Options | Unvested RSUs | Unvested PRSUs | Retirement Plan Distribution |
|---|---|---|---|---|---|---|---|---|
| With Cause | $77,187 | — | — | — | — | — | — | $77,187 |
| Resignation w/o Good Reason | $77,187 | — | — | — | — | — | — | $77,187 |
| Without Cause | $2,702,629 | $600,000 | $22,435 | — | $896,472 | $423,408 | $683,126 | $77,187 |
| Change-in-Control | $9,046,464 | $900,000 | $33,653 | $1,425,480 | $2,785,593 | $1,375,574 | $2,448,977 | $77,187 |
| Death/Disability | $7,482,811 | — | — | $795,480 | $2,785,593 | $1,375,574 | $2,448,977 | $77,187 |
Compensation Structure Analysis
- Equity-heavy mix with options, RSUs, and PRSUs equally weighted at $333,333 each in FY25 ($1,000,000 total): PRSUs at 3-year horizon with 33% rTSR component; options vest ratably over 4 years, reinforcing retention and performance alignment .
- FY26 program shifts toward heavier performance equity (50% PRSUs, 25% options, 25% RSUs), improving alignment with long-term objectives; operational AIP modifier sunset to focus solely on financial metrics .
- Governance safeguards: no excise tax gross-ups upon CIC; clawbacks; prohibition on hedging/derivatives; double-trigger vesting; no repricing of underwater options without shareholder approval .
Say-on-Pay & Shareholder Feedback
- Say-on-Pay approval: ~93% in 2024, indicating strong support for executive pay program .
- Prior approvals: ~94% in 2023; ~96% in 2022; sustained high support across years .
- Compensation consultant: CAP engaged through end of calendar 2024; FW Cook engaged thereafter .
Equity Ownership & Trading Pressure Indicators
- 2025 stock vested for Kulikowsky: 2,430 shares; no option exercises in 2025 (reduces immediate selling pressure signals) .
- Significant unvested RSUs and unearned PRSUs with annual and three-year cliffs create periodic vesting events (e.g., Nov 1 anniversaries and 3-year PRSU vest dates), potentially increasing near-term selling availability around vest dates .
- Company policy prohibits hedging and derivative transactions; pledging not permitted under insider trading and ownership frameworks .
Company Performance Since Kulikowsky’s Start
- Revenues: FY24 $6,671.2MM → FY25 $7,010.7MM (increase; AIP weighted payout 189.4% on corporate metrics) .
- EBITDA: FY24 $1,430.3MM* → FY25 $1,571.2MM* (increase) with S&P Global disclaimer.
Values with an asterisk were retrieved from S&P Global.
Investment Implications
- Pay-for-performance: AIP payout of 189.4% (corporate) underlines strong operational execution; Kulikowsky’s HR leadership aligns with strategic EI&D modifier governance (sunset in FY26) and talent-focused culture .
- Retention and risk: Balanced LTI mix and six-month notice requirement, combined with clawbacks and non-compete enforcement payments, lower voluntary departure risk; however, low direct share ownership (18,136 shares, <1%) suggests moderate “skin-in-the-game” compared to policy multiples for other NEOs .
- Event risk: CIC economics ($9.05MM incremental benefits) and double-trigger acceleration may influence executive continuity in M&A scenarios; no excise tax gross-ups mitigate shareholder-unfriendly optics .
- Trading signals: Upcoming annual RSU vest dates and eventual PRSU cliff vest dates could create episodic selling windows; absence of 2025 option exercises points to long-dated optionality and alignment with multi-year value creation .
- Governance: Strong say-on-pay support and independent consultant (FW Cook) reflect robust compensation oversight; increased PRSU weighting in FY26 raises performance sensitivity to TSR and financial metrics .