St. John Knits Gives CEO Extension

St. John Knits Inc., maker of upscale women’s clothing, said Thursday that its board has approved a one-year extension of the company’s employment agreement with Chief Executive Robert Gray.

Earlier, Gray had hinted that he would pass the chief executive’s title to daughter Kelly Gray this year. Kelly, 31, is the company’s president.

Gray, 72, said Thursday that he decided to stay on at the request of top executives--including Kelly Gray--who wanted him to stay another year because of his experience. Gray has been running the Irvine-based company for 36 years.

“They felt it would be beneficial if I wanted to stay around for another year,” he said. “Kelly will be ready when the time comes.”

In its annual proxy statement filed with the Securities and Exchange Commission, St. John listed Robert Gray’s salary at $1.56 million. Roger Ruppert, chief financial officer, said Gray’s salary will remain the same. Other terms of the amended employment agreement also will essentially stay the same, he said. The extended agreement will expire May 31, 2000.

The company also announced that Rick L. Rozar has been appointed to the board of directors. Rozar is founder and former chief executive of CDB Infotek, a Santa Ana research firm.