Vince LLC (VNCE), a leading global luxury apparel and accessories brand, has seen increased activity in its employee stock plans as it continues to register additional shares. The company recently filed a Registration Statement on Form S-8 to register an additional 1,000,000 shares of common stock available for issuance under the Vince 2013 Incentive Plan. This follows an earlier filing in 2018 to register an additional 660,000 shares.
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Vince 2013 Incentive Plan
Under the Vince 2013 Incentive Plan, the company provides grants for stock options, stock appreciation rights, restricted stock, and other stock-based awards. As of April 29, 2023, there were 887,988 shares available for future grants under this plan. Options granted under the plan typically vest in equal installments over four years, while restricted stock units (RSUs) typically vest over a three or four-year period – all subject to continued employment.
Employee Stock Purchase Plan (ESPP)
In addition to the Vince 2013 Incentive Plan, the company also maintains an employee stock purchase plan (ESPP) for eligible employees. Under the ESPP, employees can contribute up to 10% of their base compensation, up to a maximum of $10,000 per year. The purchase price of the stock is set at 90% of the fair market value, and purchases are executed quarterly. During the three months ended April 29, 2023, 1,885 shares of common stock were issued under the ESPP, marking an increase when compared to the 2,663 shares issued during the same period in the previous year. As of April 29, 2023, there were 58,690 shares available for future issuance under the ESPP.
Commitment to Employee Investment
The implementation of these employee stock plans demonstrates Vince LLC’s commitment to its employees by providing them with meaningful incentives and opportunities for ownership in the company. Share-based compensation expense for the three months ended April 29, 2023, was recorded at $420, including $54 related to non-employees. This expense was lower compared to the $609 recorded for the same period in the previous year.
Active Management of Operating Leases
Apart from employee stock plans, Vince LLC has also been actively managing its portfolio of operating leases, taking steps to negotiate more favorable lease terms and exercising renewal options on some leases. The company’s operating lease cost for the three months ended April 29, 2023, amounted to $3,797, which included a benefit of $779 for an error correction related to a lease modification during the fiscal year 2022.
Conclusion
Overall, Vince LLC’s focus on employee investment, as well as active management of its operational expenses, has allowed the company to maintain a steady performance during a challenging economic climate. The continued registration of additional shares for employee stock plans and the management of its operating lease portfolio serve to further strengthen the company’s financial position and commitment to its workforce.
Note that we may hold securities mentioned in this article. The source of this article are the SEC filings available at https://www.sec.gov/Archives/edgar/data/1579157/000095017023027589/vnce-20230429.htm that we extracted with the help of various software tools. Even though we have implemented various fact-checking processes, some incorrect information may have remained in the article (false positive). Let us know if you find any inconsistencies!