American Apparel CEO Dov Charney got a $10 million raise last year, according to a pre-proxy filing with the SEC, even as a lawsuit alleging he imprisoned a girl in his apartment as a sex slave went into arbitration.
The suit isn’t new—it’s been dragging on for months. Plaintiff Irene Morales claims she was imprisoned by Charney when she was 18.
Her case was weakened when photos and texts she allegedly sent to Charney were published in November. She called him “daddy” and referred to herself as “daddy’s little girl” in those messages.
The pay raise, for 2011, is separate and unrelated to the case, obviously. Charney earned $11.6 million in 2011, of which $10 million came in a stock award. The year before his total pay was just $782,000.
Last year, Charney pulled the company out of a financial nosedive and set the chain on course to get back to profitability.
The two events tell you just how unusual Charney is as a chief executive: Can you name one other CEO of a publicly traded company who got a raise after being accused of keeping a sex slave?
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