Vista Outdoor Inc., a prominent sporting gear company based in suburban Minneapolis, disclosed significant compensation details for their top legal professionals amidst ongoing corporate restructuring and deal negotiations. The company reported paying a combined total of approximately $3.5 million in fiscal year 2024 to its two co-general counsels, as it considers strategic decisions for its various business units.
The company revealed it has postponed a critical shareholder vote on a proposed $2 billion sale of its ammunition division to Czech arms conglomerate Czechoslovak Group AS. This deal, initially announced the prior year, has faced opposition from investors and was scrutinized by U.S. lawmakers, adding to the company’s current challenges.
Jeffrey Ehrich, who commands the legal affairs for Vista’s Kinetic Group ammunition portfolio, received nearly $2.1 million in total compensation. Ehrich, a former police officer, assumed his current role last year. Meanwhile, Y. Jung Choi, who joined Vista in October and previously served as general counsel for Boxed Inc., was compensated over $1.4 million. Included in Choi’s pay package was a $100,000 cash signing bonus and substantial equity awards.
Vista’s legal strategy appears to be in flux as the company determines the fates of its different business segments. Ehrich and Choi are expected to lead the legal departments of respective divisions post-separation. However, the separation plan itself remains unresolved.
The potential sale to Czechoslovak Group, led by Michal Strnad, is complex and continues to evolve. Reports suggest that Strnad’s company, which is heavily involved in manufacturing ammunition for Ukraine, might acquire Vista’s outdoor products business, Revelyst Inc., as well. Legal firms Clifford Chance, Cravath, Swaine & Moore, and Gibson, Dunn & Crutcher are actively representing various parties in these negotiations.
The ongoing corporate saga has not been without legal disputes. Vista is currently facing a shareholder lawsuit stemming from the board’s rejection of MNC Capital Partners LP’s $2 billion offer for the ammunition unit earlier this year.
For more detailed coverage, visit the original Bloomberg Law article.