The Australian parent company of Irvine clothing company Billabong USA is looking to lower the price for exercising options for local chief Paul Naude and other executives.
Directors of Billabong International Ltd., a maker of clothes inspired by surfing and skateboarding, are asking shareholders to sign off on a plan to lower the strike prices on more than 1.8 million in executive options, according to a report in The Australian newspaper.
The proposal would lower the strike price on 524,170 options for Naude, president of Billabong USA and an executive director at Billabong International.
The company is looking to lower the strike price from $9.95 to $9.64.
Billabong’s Australian Stock Exchange shares closed Friday at $9.73 with a market value of $2.4 billion.
The move also would reprice options for Billabong International Chief Executive Derek O’Neill and other executives.
The company is looking to cut options prices as a retention tool in a year when executives are foregoing bonuses and have seen their salaries frozen.
Billabong’s stock also has taken hits in the past year.
Shares were cut in half from fall 2008 to the spring, before rebounding in May, pulling back in June and July and rising since then.
Since January, the shares are up about 40%.
In June, Billabong completed a share sale that raised $233 million to pay down debt.
Like other clothing companies, Billabong is wrestling with a global downturn by consumers that has dented sales and profits.
