When Tupperware Brands announced they were furloughing workers and reducing pay in response to the coronavirus pandemic, company leaders said they had to take measures “to preserve the long-term financial health of the business.” Tupperware is based in Central Florida and the furloughs were another big blow to Orlando’s fragile economy.
“Decisions that adversely impact our employees are never easy, and we are deeply appreciative of all of our employees for their commitment to our purpose and our independent sales force,” CEO and president Miguel Fernandez said in a news release.
However, at the same time Tupperware Brands also approved an inducement equity award for recently hired executive Marco Brandolini, Vice President, Commercial for Europe, the Middle East and Africa. The award was approved in order to induce Brandolini to enter into employment on May 4, 2020, the company stated. Brandolini received a grant of restricted stock with a grant date of May 4, 2020 and a fair market value calculated using the closing share price on the date of grant of $200,000.
According to earnings reports, company executives have been in financial trouble since before the COVID-19 crisis, as the company has struggled to increase sales to the levels needed.
The $200,000 award was granted outside of the company’s stockholder approved equity incentive plan, in reliance on the employment inducement award exception under NYSE Listing Rule 303A.08. The grant will vest in full on the third anniversary of grant.