Check the appropriate box: | |||||||||||
☐ | | | Preliminary Proxy Statement | ||||||||
☐ | | | Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) | ||||||||
☑ | | | Definitive Proxy Statement | ||||||||
☐ | | | Definitive Additional Materials | ||||||||
☐ | | | Soliciting Material under §240.14a-12 |
SHUTTERSTOCK, INC. | |||||||||||
(Name of Registrant as Specified in its Charter) | |||||||||||
(Name of Person(s) Filing Proxy Statement, if other than the Registrant) |
☑ | | | No fee required. | ||||||||
☐ | | | Fee paid previously with preliminary materials. | ||||||||
☐ | | | Fee computed on table | ||||||||
Paul Hennessy Chief Executive Officer |
Time and | | | 10:00 a.m. Eastern Time, on Thursday, June | ||
8, 2023. | |||||
| | Via live You will not be able to attend the | |||
| | To participate, vote or submit questions during the | |||
Items of | | | •To elect the Class •To cast a non-binding advisory vote to approve named executive officer compensation (“say-on-pay”); •To ratify the appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm for the fiscal year ending December 31, •To transact such other business as may properly come before the | ||
Record | | | You are entitled to vote only if you were a Shutterstock, Inc. stockholder as of April | ||
10, 2023. | |||||
| | Your vote is important. Whether or not you plan to attend the | |||
John Lapham Senior Vice President, General Counsel and Corporate Secretary |
1. | Why am I receiving these materials? |
2. | What is included in the proxy materials? |
3. | What information is included in the proxy statement? |
4. | Why did I receive a notice in the mail regarding the Internet availability of proxy materials instead of a full set of printed proxy materials? |
5. | How can I access the proxy materials over the Internet? |
6. | What is householding? |
7. | What proposals am I voting on at the |
• | Proposal One: Election of each of Deirdre Bigley and Alfonse Upshaw to the Board, each to serve as a Class II director for a three-year term ending at the 2026 Annual Meeting of Stockholders or until such director’s successor has been duly elected or appointed and qualified, or until such director’s earlier resignation or removal; |
• | Proposal Two: Approval, on an advisory basis, of the compensation of our named executive officers, as disclosed in this proxy statement (“say-on-pay”); and |
• | Proposal Three: Ratification of the appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2023. |
8. | How does the Board recommend I vote on the proposals? |
• | FOR the election of each of Deirdre Bigley and Alfonse Upshaw to the Board, each to serve as a Class II director for a three-year term ending at the 2026 Annual Meeting of Stockholders or until such director’s successor has been duly elected or appointed and qualified, or until such director’s earlier resignation or removal; |
• | FOR the approval of the compensation of our named executive officers, as disclosed in this proxy statement (“say-on-pay”); and |
• | FOR the ratification of the appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2023. |
9. | Who is entitled to vote at the |
10. | How do I vote my shares? |
• | VOTE BY INTERNET |
○ | Before the Meeting: Go to www.proxyvote.com or scan the QR Barcode above Use the Internet on your Notice to transmit your voting instructions and for electronic delivery of information up until 11:59 p.m. Eastern Time on June 7, 2023. Have your proxy card in hand when you access the web site and follow the instructions to obtain your records and to create an electronic voting instruction form. |
○ | During The Meeting: Go to www.virtualshareholdermeeting.com/SSTK2023 You may attend the meeting via the Internet and vote during the meeting. Have the information that is printed in the box marked by the arrow on your Notice available and follow the instructions. |
• | VOTE BY PHONE: 1-800-690-6903 Use any touch-tone telephone to transmit your voting instructions up until 11:59 p.m. Eastern Time on June 7, 2023. Have your Notice in hand when you call and then follow the instructions. |
• | VOTE BY MAIL: Mark, sign and date your proxy card and return it in the postage-paid envelope we have provided or return it to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717. |
11. | How many votes am I entitled to per share? |
12. | Can I change my vote or revoke my proxy? |
13. | Is my vote confidential? |
14. | How many shares must be represented to conduct business at the |
15. | What is a “broker non-vote”? |
16. | How are my votes counted? |
17. | What is the voting requirement to approve each of the proposals? |
18. | What happens if a director receives a plurality, but not a majority, of votes cast at the |
19. | What happens if additional matters are presented at the |
20. | How is the Company soliciting proxies for the |
21. | Where can I find the voting results of the |
22. | How do I attend the |
23. | What do I need in order to participate in the |
24. | What if during the check-in time or during the |
25. | What is the deadline to propose actions for consideration at next year’s Annual Meeting of Stockholders or to nominate individuals to serve as directors? |
26. | How may I communicate with the Board? |
27. | Where can I obtain corporate governance materials? |
| Name | | | Age | | | Position | | ||
Jonathan Oringer | | 48 | | | Founder and Executive Chairman of the Board | | ||||
| Rachna Bhasin | | 50 | | | Director | | |||
| Deirdre Bigley | |||||||||
58 | | | Director (Nominee for election at the | | ||||||
| John Caine | | | 48 | | | Global Head of E-Commerce | | ||
| Thomas R. Evans | | | 68 | | | Director | | ||
| Paul J. Hennessy | | 58 | | | Director and Chief Executive Officer | | |||
| Alfonse Upshaw | | | 53 | | | Director (Nominee for election at the | | ||
Jarrod Yahes | | 48 | | | Chief Financial Officer | |||||
| Policy | | | Description | | |
Insider Trading and Disclosure Policy | | | Sets forth the Company’s limitations regarding trading in Company securities and the handling of non-public material information. | | ||
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Whistleblower Policy | | | Sets forth the procedures for the reporting of suspected misconduct, illegal activities or fraud, including any questionable accounting, internal accounting controls and auditing matters, or other violations of federal or state laws or the Code of Ethics and the receipt, treatment and investigation of such reports. | | ||
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Related Person Transaction Policy | | | Sets forth the policies and procedures for reviewing, approving and ratifying proposed transactions with directors, executive officers, significant stockholders or any other related persons. | | ||
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Anti-Corruption Policy | | | Provides detailed guidance for our Board members, officers, employees and third parties acting on our behalf on prohibited actions under anti-bribery and anti-corruption laws. | | ||
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Anti-Harassment Policy | | | Provides that all persons shall be treated with dignity and respect and shall not be subject to discriminatory practices and harassment and sets forth the policies and procedures for reporting and investigation suspected harassment. | | ||
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Corporate Communications and Disclosure Policy | | | Sets forth guidelines on fair and complete disclosure of Company information to current and future stockholders, the investing public and the financial community to ensure compliance with SEC rules and regulations. | | ||
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Economic Sanctions Compliance Policy | | | Provides that all Company activities by directors, officers, employees and agents acting on behalf of the Company comport fully with applicable embargoes and other economic sanctions requirements. | | ||
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Executive Compensation Clawback Policy1 | | | Sets forth the guidelines pursuant to which the Company may recover certain incentive-based compensation payments made to executive officers and non-executive officers, as applicable, if the Company is required to prepare an accounting restatement of its financial statements as a result of (i) material noncompliance with any financial reporting requirements under the federal securities laws, (ii) negligence, misconduct, wrongdoing or violation of any Company policies or (iii) willful, knowing or intentional misconduct or violation of any Company policy or applicable legal and regulatory requirements. | | ||
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Hedging Policy | | | Provides that all Company employees, officers and directors may not engage in (1) hedging or derivative transactions or any other speculative transactions (hedging or derivative actions include (i) “cashless” collars, (ii) forward contracts, (iii) equity swaps or (iv) other similar related transactions); (2) any transactions that suggest speculation in the Company’s Stock; or (3) any short sale, “sale against the box” or any equivalent transaction involving the Company’s stock. | | ||
| Information Security Policy | | | Designed to ensure the safeguarding of all information in the Company’s possession in accordance with applicable law by establishing policies, practices, and procedures, and implementing technical, administrative, and physical measures, to protect it. | |
1 | ||||||||||||||
| Name | | |||||||||||||||||||||
| Audit Committee | | | Compensation Committee | | | Nominating and Corporate Governance Committee | ||||||||||||||||
| | ☐ | | | ☐ | | | ☐ | | ||||||||||||||
Deirdre Bigley | | | | | ☐ | | |||||||||||||||||
| Thomas R. Evans | | | | | ☐ | | | | ||||||||||||||
Alfonse Upshaw | | | | | | | |||||||||||||||||
| | | |||||||||||||||||||||
| | | | | | |
| Director | | | Qualifications | | |
Dierdre Bigley | | Extensive experience working at multinational corporations with teams across a range of products and significant business and operational experience, particularly as a senior marketing executive | | |||
Alfonse Upshaw | | | Extensive | |
| Director | | | Qualifications | | |
(term expiring at Meeting) | ||||||
| | |||||
Extensive experience in the commercial digital imagery industry, experience with entrepreneurial and technology companies and extensive knowledge of the Company as its founder. | | |||||
| ||||||
(term expiring at Meeting) | ||||||
| | |||||
Extensive senior leadership experience in the technology and media industries, specifically driving corporate and business development initiatives and significant technical expertise and experience in innovation. Valuable insight into evaluation and execution of strategic, business and operational initiatives. | | |||||
| Thomas R. Evans (term expiring at 2024 Annual Meeting) | | | Breadth of business experience, particularly as a senior executive in internet and media industries, and service on the board of directors of public companies; valuable insight into operational strategy and execution. | | |
| Paul J. Hennessy (term expiring at 2024 Annual Meeting) | | | Extensive global marketing and management experience as well as domestic and international start-up experience, particularly as a senior executive with online marketing experience in the internet and travel industries. | |
Role | Role | Annual Fees- Chairperson ($) | Annual Fees- Other Members ($) | | Annual Retainer- Chairperson ($) | | Annual Retainer- Other Members ($) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Audit Committee | Audit Committee | 20,000 | 10,000 | | 20,000 | | 10,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation Committee | Compensation Committee | 10,000 | 5,000 | | 10,000 | | 5,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nominating and Corporate Governance Committee | Nominating and Corporate Governance Committee | — | 2,500 | | 2,500 | | 2,500 |
Name | Fees Earned or Paid in Cash ($)(1) | Stock Awards ($)(2) | Total ($) | ||||||||||||||||||||||||||||||||||||||
Deirdre Bigley(3) | 62,500 | 155,372 | 217,872 | ||||||||||||||||||||||||||||||||||||||
Jeff Epstein(4) | 67,292 | 155,372 | 222,664 | ||||||||||||||||||||||||||||||||||||||
Thomas R. Evans(5) | 77,500 | 155,372 | 232,872 | ||||||||||||||||||||||||||||||||||||||
Paul J. Hennessy(6) | 65,000 | 155,372 | 220,372 | ||||||||||||||||||||||||||||||||||||||
Rachna Bhasin(7)(8) | 55,000 | 155,372 | 210,372 | ||||||||||||||||||||||||||||||||||||||
Alfonse Upshaw(9) | 5,833 | 91,423 | 97,256 |
Name | | | Fees Earned or Paid in Cash ($)(1) | | | Stock Awards ($)(2) | | | Total ($) |
Deirdre Bigley(3) | | | 62,500 | | | 137,284 | | | 199,784 |
Thomas R. Evans(4) | | | 77,500 | | | 137,284 | | | 214,784 |
Rachna Bhasin(5)(6) | | | 57,500 | | | 137,284 | | | 194,784 |
Alfonse Upshaw(7) | | | 70,000 | | | 137,284 | | | 207,284 |
(1) | Represents all fees earned or paid in cash for services as a director for the fiscal year ended December 31, 2022, including annual retainer fees, committee chair and membership fees, as applicable. |
(2) | Amounts represent the aggregate grant date fair value of stock awards computed in accordance with Financial Accounting Board Accounting Standards Codification Topic 718, “Compensation - Stock Compensation.” Stock awards reflect a grant of RSUs with a value of approximately $150,000 on the date of the 2022 Annual Meeting of Stockholders, with the number of shares determined by dividing $150,000 by the average of our closing price for a share of our Common Stock during the 30 trading-day period ending on the date immediately prior to the grant date, rounded down to the nearest whole number of shares. Grant date fair value was calculated using the closing price on the grant date of $60.88 per share, which was the closing price of our Common Stock on June 2, 2022. |
(3) | As of December 31, 2022, Ms. Bigley had 2,255 unvested RSUs. |
(4) | As of December 31, 2022, Mr. Evans had 2,255 unvested RSUs and 21,066 vested RSUs, the settlement of which has been deferred. |
(5) | As of December 31, 2022, Ms. Bhasin had 2,255 unvested RSUs and 7,601 vested RSUs, the settlement of which has been deferred. |
(6) | Fees are paid to EQ Partners, LLC. |
(7) | As of December 31, 2022, Mr. Upshaw had had 2,255 unvested RSUs and 2,983 vested RSUs, the settlement of which has been deferred. |
| | Shares Beneficially Owned | ||||
Name of Beneficial Owner | | | Number | | | Percentage |
Named Executive Officers and Directors: | | | | | ||
Jonathan Oringer | | | 11,446,430 | | | 31.8% |
Paul J. Hennessy | | | 46,983 | | | * |
Jarrod Yahes(1) | | | 56,578 | | | * |
Stan Pavlovsky(2) | | | 123,510 | | | * |
Peter Silvio(3) | | | 25,116 | | | * |
Deirdre Bigley(4) | | | 11,783 | | | * |
Rachna Bhasin(5) | | | 19,161 | | | * |
Thomas R. Evans(6) | | | 46,131 | | | * |
Alfonse Upshaw(7) | | | 6,517 | | | * |
All executive officers and directors as a group (8 persons)(8) | | | 11,633,583 | | | 32.3% |
Other 5% Stockholders: | | | | | ||
Blackrock, Inc.(9) | | | 4,026,472 | | | 11.2% |
The Vanguard Group(10) | | | 3,010,586 | | | 8.4% |
Shares Beneficially Owned | ||||||||||||||
Name of Beneficial Owner | Number | Percentage | ||||||||||||
Named Executive Officers and Directors: | ||||||||||||||
Jonathan Oringer(1) | 13,603,542 | 36.9% | ||||||||||||
Stan Pavlovsky(2) | 62,619 | * | ||||||||||||
Jarrod Yahes | — | * | ||||||||||||
Steven Ciardiello(3) | 13,568 | * | ||||||||||||
Peter Silvio(4) | 7,992 | * | ||||||||||||
Abraham Muchnick(5) | — | — | ||||||||||||
Deirdre Bigley(6) | 9,266 | * | ||||||||||||
Rachna Bhasin(7) | 7,601 | * | ||||||||||||
Jeff Epstein(8) | 49,989 | * | ||||||||||||
Thomas R. Evans(9) | 26,360 | * | ||||||||||||
Paul J. Hennessy(10) | 21,134 | * | ||||||||||||
Alfonse Upshaw(11) | 1,279 | * | ||||||||||||
All executive officers and directors as a group (12 persons)(12) | 37.4% | |||||||||||||
Other 5% Stockholders: | ||||||||||||||
Blackrock, Inc.(13) | 3,347,128 | 9.2% | ||||||||||||
ArrowMark Colorado Holdings LLC(14) | 1,909,688 | 5.2% | ||||||||||||
The Vanguard Group(15) | 2,525,196 | 6.9% |
* | Represents beneficial ownership of less than 1%. |
(1) | Consists of 21,053 shares of Common Stock and 35,525 shares issuable upon exercise of outstanding options exercisable at or within 60 days of April 10, 2023. |
(2) | Mr. Pavlovsky resigned as Chief Executive Officer effective May 3, 2022. His information comes from his final Form 4 filing on April 6, 2022. |
(3) | Mr. Silvio resigned as Chief Technology Officer effective September 1, 2022. His information comes from his final Form 4 filing on June 3, 2022. |
(4) | Consists of 9,528 shares of Common Stock and 2,255 shares issuable upon the vesting of RSUs at or within 60 days of April 10, 2023. |
(5) | Consists of 9,305 shares of Common Stock and 2,255 shares issuable upon the vesting of RSUs at or within 60 days of April 10, 2023. |
(6) | Consists of 22,810 shares of Common Stock and 2,255 shares issuable upon the vesting of RSUs at or within 60 days of April 10, 2023. |
(7) | Consists of 1,279 shares of Common Stock and 2,255 shares issuable upon the vesting of RSUs at or within 60 days of April 10, 2023. |
(8) | Includes 35,525 shares issuable upon exercise of outstanding options exercisable at or within 60 days of April 10, 2023 and 9,020 shares issuable upon the vesting of RSUs at or within 60 days of April 10, 2023. |
(9) | This information is based solely on a Schedule 13G/A filed by Blackrock, Inc. (“Blackrock”) with the SEC on January 23, 2023, which reported ownership as of December 31, 2022. Of the 4,026,472 shares of our Common Stock deemed beneficially owned, Blackrock reported sole voting power as to 3,970,472 shares, shared voting power as to 0 shares and sole dispositive power as to all shares beneficially owned. The address of Blackrock is 55 East 52nd Street New York, New York 10055. |
(10) | This information is based solely on a Schedule 13G/A filed by The Vanguard Group (“Vanguard”) with the SEC on February 9, 2023, which reported ownership as of December 30, 2022. Of the 3,010,586 shares of our Common Stock deemed beneficially owned, Vanguard reported sole voting power as to 0 shares, shared voting power as to 40,032 shares, sole dispositive power as to 2,945,263 shares and shared dispositive power as to 65,323 shares. The address of Vanguard is 100 Vanguard Blvd., Malvern, Pennsylvania 19355. |
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Jonathan Oringer | | | Founder, Executive Chairman of the Board(1) | | ||||||||||
| | | Chief Executive Officer(2) | | ||||||||||
| Stan Pavlovsky | | | Former Chief Executive Officer(3) | | |||||||||
| Jarrod Yahes | | | Chief Financial Officer | | |||||||||
| ||||||||||||||
| Former Chief Technology Officer | |||||||||||||
(1) | Mr. Oringer has served as our Executive Chairman since April 2020. From May 3, 2022 to July 1, 2022, Mr. Oringer also served as our interim Chief |
(2) | Mr. Hennessy was appointed our Chief Executive Officer effective July 1, 2022. |
(3) | Mr. Pavlovsky resigned as our Chief Executive Officer effective May 3, 2022. |
(4) | Mr. Silvio resigned as our Chief Technology Officer effective May 31, 2022. |
• | Revenue increased 7% to $ 827.8 million(2) |
• | Adjusted EBITDA increased 13% to $218.1 million(3) |
• | Free cash flow decreased 45% to $98.3 million(3) |
(1) | For additional information regarding our financial results, please see our 2022 Annual Report, including “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.” For a description of our key metrics, including number of subscribers, subscriber revenue, average revenue per customer, paid downloads, revenue per download and content in our collection, see “Key Operating Metrics” within “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2022 Annual Report. |
(2) | On a constant currency basis, revenue increased 11%. For a discussion regarding, and reconciliation of, our non-GAAP to GAAP financial measures, please see Annex A. (“GAAP” means accounting principles generally accepted in the United States.) |
(3) | For a discussion regarding, and reconciliation of, our non-GAAP to GAAP financial measures, please see Annex A. |
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What we do | | | | | What we don’t do | ||||||||||||||||||
| | Maintain a completely independent Compensation Committee that establishes our compensation practices | | | | Encourage unreasonable risk taking | |||||||||||||||||
| | Design executive compensation program to align pay with performance, including certain long-term equity awards with vesting tied to performance achievement | | | | No excessive change in control or severance payments | |||||||||||||||||
| | Award a vast majority of pay as variable, performance-aligned opportunity and not fixed compensation | | | | No repricing underwater stock options or grants without seeking stockholder approval | |||||||||||||||||
Use an independent compensation consultant | | | | | No excise tax gross-ups upon change in control termination benefits | ||||||||||||||||||
| | Provide for “double-trigger” equity acceleration for our executive officers upon change in control | | | | No defined benefit retirement plans, or | |||||||||||||||||
| | Maintain a clawback policy | | | | No hedging or pledging of our equity securities by directors or employees, including our executive officers |
| Anaplan, Inc. | | | Envestnet, Inc. | | | Paycom Software, Inc. | | | Stitch Fix, Inc. | |
Avalara, Inc. | | Etsy, Inc. | | Pinterest, Inc. | | | TrueCar, Inc. | | |||
Box, Inc. | | Magnite, Inc. | | | QuinStreet, Inc. | | | Yelp Inc. | | ||
| Dropbox, Inc. | | | New Relic, Inc. | | | Quotient Technology, Inc. | ||||
Zendesk, Inc. | |||||||||||
|
| Compensation Element | | | Characteristics | | | Objectives | | |||
| | | Characteristics | | | Objectives | | |
| Long-Term Incentive Compensation | | | | | Align an executive’s interest with that of stockholders and motivate and reward profitable growth and increases in stock price over time. Aid in attraction and retention of executive talent. | | |
| Other Compensation | | | Indirect compensation elements consisting of programs such as medical, dental and vision insurance, a 401(k) plan, life and disability insurance, flexible spending accounts and other plans and programs made available to eligible employees | | | Provide benefits that promote employee health and welfare, wellness and retirement income and learning and development opportunities, which assists in attracting and retaining our executive officers. | |
Named Executive Officer | | | Fiscal 2022 Base Salary |
Jonathan Oringer | | | $1 |
Paul Hennessy(1) | | | $700,000 |
Stan Pavlovsky(1) | | | $700,000 |
Jarrod Yahes | | | $550,000 |
Peter Silvio(1) | | | $400,000 |
(1) | As reflected in the Salary column of the Summary Compensation Table, Messrs. Hennessy, Pavlovsky and Silvio received a prorated portion of this base salary |
Executive Officer | | | % of Base Salary Fiscal 2022 | | | Target Incentive Compensation |
Paul Hennessy(1) | | | 100% | | | $700,000 |
Stan Pavlovsky | | | 100% | | | $700,000 |
Jarrod Yahes | | | 80% | | | $440,000 |
Peter Silvio | | | 60% | | | $240,000 |
(1) | In |
| | Revenue | | | Adjusted EBITDA(1) | |
Target (millions) | | | $878.4 | | | $227.3 |
2022 Results (millions)(2) | | | $823.0 | | | $217.2 |
Target Achieved | | | 74.8% | | | 91.2% |
Payout Percentage | | | 37.4% | | | 45.6% |
(1) | For a discussion regarding, and reconciliation of, our non-GAAP to |
(2) | The 2022 Results, for purposes of |
Named Executive Officer | | | Target Payout ($) | | | Payout based on Company Achievement Score ($) | | | Discretionary % Increase/ (Decrease) in Payout | | | Actual Payout ($) |
Paul Hennessy | | | 700,000 | | | 581,000 | | | 0.00% | | | 581,000 |
Stan Pavlovsky(1) | | | 700,000 | | | 581,000 | | | 0.00% | | | 0 |
Jarrod Yahes | | | 440,000 | | | 365,200 | | | 0.00% | | | 365,200 |
Peter Silvio(2) | | | 160,438 | | | 133,163 | | | 0.00% | | | 133,163 |
(1) | Mr. Pavlovsky
|
(2) | Reflects pro-rata bonus payment pursuant to the
|
Named Executive Officer | | | Fiscal 2022 Base Salary |
Jonathan Oringer | | | $1 |
Paul Hennessy(1) | | | $700,000 |
Stan Pavlovsky(1) | | | $700,000 |
Jarrod Yahes | | | $550,000 |
Peter Silvio(1) | | | $400,000 |
(1) | As reflected in the |
Executive Officer | | | % of Base Salary Fiscal 2022 | | | Target Incentive Compensation |
Paul Hennessy(1) | | | 100% | | | $700,000 |
Stan Pavlovsky | | | 100% | | | $700,000 |
Jarrod Yahes | | | 80% | | | $440,000 |
Peter Silvio | | | 60% | | | $240,000 |
(1) | In accordance with the terms of his employment agreement, upon his appointment as Chief Executive Officer in May 2022, Mr. Hennessy was eligible to |
| | Revenue | | | Adjusted EBITDA(1) | |
Target (millions) | | | $878.4 | | | $227.3 |
2022 Results (millions)(2) | | | $823.0 | | | $217.2 |
Target Achieved | | | 74.8% | | | 91.2% |
Payout Percentage | | | 37.4% | | | 45.6% |
(1) | For a discussion regarding, and reconciliation of, our |
(2) | The |
Named Executive Officer | | | Target Payout ($) | | | Payout based on Company Achievement Score ($) | | | Discretionary % Increase/ (Decrease) in Payout | | | Actual Payout ($) |
Paul Hennessy | | | 700,000 | | | 581,000 | | | 0.00% | | | 581,000 |
Stan Pavlovsky(1) | | | 700,000 | | | 581,000 | | | 0.00% | | | 0 |
Jarrod Yahes | | | 440,000 | | | 365,200 | | | 0.00% | | | 365,200 |
Peter Silvio(2) | | | 160,438 | | | 133,163 | | | 0.00% | | | 133,163 |
Named Executive Officer(1) | 2020 RSU Grants ($ Value) | 2020 RSU Grants (Number of Shares) | 2020 PSU Grants (Target $ Value) | 2020 PSU Grants (Target Number of Shares) | 2020 Option Grants ($ Value) | 2020 Option Grants (Number of Shares) | |||||||||||||||||||||||||||||
Jonathan Oringer | — | 4,500,000 | 124,930 | — | — | ||||||||||||||||||||||||||||||
Stan Pavlovsky | 1,000,000 | 27,762 | 4,500,000 | 124,930 | — | — | |||||||||||||||||||||||||||||
Jarrod Yahes | 1,000,000 | 23,562 | 250,000 | 6,940 | 1,000,000 | 53,022 | |||||||||||||||||||||||||||||
Steven Ciardiello | 225,000 | 6,246 | 450,000 | 12,493 | — | — | |||||||||||||||||||||||||||||
Peter Silvio | — | — | 500,000 | 13,881 | — | — |
(1) | Mr. |
(2) | Reflects pro-rata bonus payment pursuant to |
Named Executive Officer | | | Fiscal 2022 Base Salary |
Jonathan Oringer | | | $1 |
Paul Hennessy(1) | | | $700,000 |
Stan Pavlovsky(1) | | | $700,000 |
Jarrod Yahes | | | $550,000 |
Peter Silvio(1) | | | $400,000 |
(1) | As reflected in the Salary column of the Summary Compensation Table, Messrs. Hennessy, Pavlovsky and |
Executive Officer | | | % of Base Salary Fiscal 2022 | | | Target Incentive Compensation |
Paul Hennessy(1) | | | 100% | | | $700,000 |
Stan Pavlovsky | | | 100% | | | $700,000 |
Jarrod Yahes | | | 80% | | | $440,000 |
Peter Silvio | | | 60% | | | $240,000 |
(1) | In accordance with |
| | Revenue | | | Adjusted EBITDA(1) | |
Target (millions) | | | $878.4 | | | $227.3 |
2022 Results (millions)(2) | | | $823.0 | | | $217.2 |
Target Achieved | | | 74.8% | | | 91.2% |
Payout Percentage | | | 37.4% | | | 45.6% |
(1) | For a discussion regarding, and |
(2) | The 2022 Results, for purposes of our annual cash incentive award calculation, were adjusted to remove the impact of acquisition activity. |
Named Executive Officer | | | Target Payout ($) | | | Payout based on Company Achievement Score ($) | | | Discretionary % Increase/ (Decrease) in Payout | | | Actual Payout ($) |
Paul Hennessy | | | 700,000 | | | 581,000 | | | 0.00% | | | 581,000 |
Stan Pavlovsky(1) | | | 700,000 | | | 581,000 | | | 0.00% | | | 0 |
Jarrod Yahes | | | 440,000 | | | 365,200 | | | 0.00% | | | 365,200 |
Peter Silvio(2) | | | 160,438 | | | 133,163 | | | 0.00% | | | 133,163 |
(1) | Mr. Pavlovsky resigned from the Company effective May 3, 2022 and did not receive any cash incentive payout for 2022. |
(2) | Reflects pro-rata bonus payment pursuant to the terms of Mr. Silvio’s employment agreement. |
Achievement Level | | | Percentage Vesting |
Outstanding | | | 150% |
Target | | | 100% |
Threshold | | | 75% |
Named Executive Officer | | | 2022 RSU Grants ($ Value) | | | 2022 RSU Grants (Number of Shares) | | | 2022 PSU Grants (Target $ Value) | | | 2022 PSU (Target Number of Shares) |
Jon Oringer | | | — | | | 0 | | | 5,500,000 | | | 60,346 |
Paul Hennessy | | | 15,000,000 | | | 262,789 | | | 15,000,000 | | | 262,789 |
Stan Pavlovsky | | | 1,375,000 | | | 15,086 | | | 4,125,000 | | | 45,260 |
Jarrod Yahes | | | 750,000 | | | 8,229 | | | 2,250,000 | | | 24,687 |
Peter Silvio | | | 375,000 | | | 4,114 | | | 1,125,000 | | | 12,343 |
2 | The Company currently is reviewing its Executive Compensation Clawback Policy in light of the |
Deirdre Bigley (Chairwoman) Rachna Bhasin Thomas R. Evans |
Name and Principal Position | | | Year | | | Salary(1) ($) | | | Bonus ($) | | | Stock Awards ($)(2) | | | Option Awards ($)(2) | | | Non-Equity Incentive Plan Compensation(3) | | | All Other Compensation ($) | | | Total ($) |
Jonathan Oringer Executive Chairman | | | 2022 | | | 1 | | | — | | | 5,636,920 | | | — | | | — | | | — | | | 5,636,921 |
| 2021 | | | 1 | | | — | | | 5,164,489 | | | — | | | — | | | — | | | 5,164,490 | ||
| 2020 | | | 1 | | | — | | | 4,762,332 | | | — | | | — | | | 493,626 | | | 5,255,959 | ||
Paul Hennessy Chief Executive Officer | | | 2022 | | | 325,769 | | | — | | | 19,912,380 | | | — | | | 581,000 | | | 64,111(4) | | | 20,883,260 |
Stan Pavlovsky Former Chief Executive Officer | | | 2022 | | | 261,154 | | | — | | | 5,636,920 | | | | | — | | | 15,256(5) | | | 5,913,330 | |
| 2021 | | | 700,000 | | | — | | | 4,131,482 | | | | | 870,100 | | | 16,069 | | | 5,717,651 | |||
| 2020 | | | 610,385 | | | — | | | 5,583,809 | | | | | 819,700 | | | 11,865 | | | 7,025,759 | |||
Jarrod Yahes Chief Financial Officer | | | 2022 | | | 550,000 | | | — | | | 3,074,684 | | | — | | | 365,200 | | | 11,750(6) | | | 4,001,634 |
| 2021 | | | 550,000 | | | — | | | 2,065,650 | | | — | | | 546,900 | | | 11,250(6) | | | 3,173,800 | ||
| 2020 | | | 539,423 | | | — | | | 1,270,886 | | | 999,995 | | | 515,250 | | | 11,250(7) | | | 3,336,804 | ||
Peter Silvio Former Chief Technology Officer | | | 2022 | | | 283,077 | | | — | | | 1,537,248 | | | — | | | 133,164 | | | 418,291(8) | | | 2,371,781 |
| 2021 | | | 400,000 | | | — | | | 1,136,062 | | | — | | | 298,300 | | | 10,770 | | | 1,845,132 | ||
| 2020 | | | 392,308 | | | — | | | 529,144 | | | — | | | 234,200 | | | 10,770 | | | 1,166,422 |
(1) | For Mr. Hennessy, Mr. Pavlovsky and
|
(2) | Amounts represent the aggregate grant date fair value computed in accordance with ASC Topic 718 for RSUs $1,729,439. |
(3) | Amounts shown in the non-equity incentive plan compensation column represent performance-based bonuses, |
(4) | Consists of |
(5) | Consists of a |
(6) | Consists of a |
(7) | Consists of a $9,750 payment for 401(k) matching contributions by the Company, the value of Company-provided group term life insurance premium and mobile phone allowance. |
(8) | Consists of a |
| | Grant Date | | | Estimated Future Payouts Under Non-Equity Incentive Plan Awards | | | Estimated Future Payouts Under Equity Incentive Plan Awards (1) | | | All Other Stock Awards Number of Shares of Stock or Units (#) | | | Grant Date Fair Value of Stock and Option Awards ($)(2) | |||||||||||||
Name | | | Threshold ($) | | | Target ($) | | | Maximum ($) | | | Threshold (#) | | | Target (#) | | | Maximum (#) | | ||||||||
Jon Oringer | | | | | | | | | | | | | | | | | | | |||||||||
2022 Annual Cash Bonus | | | | | — | | | — | | | — | | | | | | | | | | | ||||||
2022 RSU Grants | | | | | | | | | | | | | | | | | — | | | — | |||||||
2022 PSU Grants | | | April 1, 2022 | | | | | | | | | 45,259 | | | 60,346 | | | 90,519 | | | | | $5,636,920 | ||||
Paul Hennessy | | | | | | | | | | | | | | | | | | | |||||||||
2022 Annual Cash Bonus | | | | | $525,000 | | | $700,000 | | | $1,015,000 | | | | | | | | | | | $4,978,081 | |||||
2022 RSU Grants | | | July 1, 2022 | | | | | | | | | | | | | | | 262,789 | | | $14,934,299 | ||||||
2022 PSU Grants | | | July 1, 2022 | | | | | | | | | 65,697 | | | 87,596 | | | 131,394 | | | | | |||||
Stan Pavlovsky | | | | | | | | | | | | | | | | | | | |||||||||
2022 Annual Cash Bonus | | | | | $525,000 | | | $700,000 | | | $1,015,000 | | | | | | | | | | | ||||||
2022 RSU Grants | | | April 1, 2022 | | | | | | | | | | | | | | | 15,086 | | | $1,409,183 | ||||||
2022 PSU Grants | | | April 1, 2022 | | | | | | | | | 22,945 | | | 45,260 | | | 67,890 | | | | | $4,227,737 | ||||
Jarrod Yahes | | | | | | | | | | | | | | | | | | | |||||||||
2022 Annual Cash Bonus | | | | | $330,000 | | | $440,000 | | | $638,000 | | | | | | | | | | | ||||||
2022 RSU Grants | | | April 1, 2022 | | | | | | | | | | | | | | | 8,229 | | | $768,671 | ||||||
2022 PSU Grants | | | April 1, 2022 | | | | | | | | | 18,515 | | | 24,687 | | | 37,030 | | | | | $2,306,013 | ||||
Peter Silvio | | | | | | | | | | | | | | | | | | | |||||||||
2022 Annual Cash Bonus | | | | | $180,000 | | | $240,000 | | | $348,000 | | | | | | | | | | | ||||||
2022 RSU Grants | | | April 1, 2022 | | | | | | | | | | | | | | | 4,114 | | | $384,289 | ||||||
2022 PSU Grants | | | April 1, 2022 | | | | | | | | | 9,257 | | | 12,343 | | | 18,514 | | | | | $1,152,960 |
(1) | These figures represent threshold, target and maximum potential future payouts under the PSUs granted to each of our named executive officers in fiscal 2022. The PSUs are eligible to vest based on the achievement of certain performance targets. Vesting of the PSU award is contingent upon the Company’s achievement of Adjusted EBITDA margin and revenue growth targets for fiscal 2022, as well as the NEO’s continued employment with the Company at the time of vesting. Each PSU will be settled in shares of the Company’s stock. NEOs do not have voting or dividend rights with respect to unvested PSUs. See “Compensation Discussion and Analysis - Section 3 - Elements of 2022 Compensation - Long Term Incentive Compensation” for further information regarding the PSUs. For Mr. Oringer, Mr. Pavlovsky, Mr. Silvio and Mr. Yahes, the “2022 PSU Grant” reflects three annual tranches, as the performance targets for these three tranches are set at the start of the three-year performance period. For the PSUs granted to Mr. Hennessy in 2022, each annual performance target is set at the start of each respective single-year performance period, and therefore, only one annual tranche of the PSUs is considered granted in 2022 under FASB Topic 718 and included in this table. |
(2) | Amounts reflect the aggregate grant date fair value computed in accordance with ASC Topic 718, assuming achievement of target-level performance with respect to the 2022 PSU grants. A discussion of the assumptions used in determining grant date fair value may be found in Note 1 to our audited consolidated financial statements included in our 2022 Annual Report. |
| | | | OPTIONS | | | STOCK AWARDS | |||||||||||||||||||||||
Executive Officer | | | Grant Date | | | Number of Securities Underlying Unexercised Options (#) Exercisable | | | Number of Securities Underlying Unexercised Options (#) Unexercisable | | | Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#) | | | Option Exercise Price ($) | | | Option Expiration Date | | | Number of Shares or Units of Stock That Have Not Vested (#) | | | Market Value of Shares or Units of Stock That Have Not Vested ($)(1) | | | Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#)(2) | | | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($)(1) |
Jon Oringer | | | 4/24/2014 | | | | | | | 527,485(3) | | | 76.73 | | | 4/24/2024 | | | | | | | 105,497(4) | | | 5,561,801 | ||||
| | 3/1/2016 | | | 263,742 | | | | | | | 32.95 | | | 3/1/2026 | | | | | | | 0 | | | 0 | |||||
| | 4/1/2020 | | | | | | | | | | | | | | | | | 42,476 | | | 2,239,334 | ||||||||
| | 4/1/2021 | | | | | | | | | | | | | | | | | 37,687 | | | 1,986,858 | ||||||||
| | 4/1/2022 | | | | | | | | | | | | | | | | | 60,346 | | | 3,181,441 | ||||||||
Paul Hennessy | | | 7/1/2022 | | | | | | | | | | | | | 262,789 | | | 13,854,236(5) | | | 87,596 | | | 4,618,061 | |||||
Stan Pavlovsky(6) | | | | | | | | | | | | | | | | | | | | | ||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||||||
Peter Silvio(7) | | | 4/1/2020 | | | | | | | | | | | | | 0 | | | 0.00 | | | 3,143 | | | 165,698 | |||||
| | 4/1/2021 | | | | | | | | | | | | | 0 | | | 0.00 | | | 2,132 | | | 112,399 | ||||||
| | 4/1/2022 | | | | | | | | | | | | | 0 | | | 0.00 | | | 2,738 | | | 144,347 | ||||||
Jarrod Yahes | | | 1/6/2020 | | | 35,525 | | | | | | | 42.96 | | | 1/6/2030 | | | 0 | | | 0.00 | | | 0 | | | 0 | ||
| | 4/1/2020 | | | | | | | | | | | | | 0 | | | 0.00 | | | 2,360 | | | 124,419 | ||||||
| | 4/1/2021 | | | | | | | | | | | | | 3,768 | | | 198,648(8) | | | 11,306 | | | 596,052 | ||||||
| | 4/1/2022 | | | | | | | | | | | | | 8,229 | | | 433,832(9) | | | 24,687 | | | 1,301,499 |
(1) | Assumes a price per share of our Common Stock of $52.72, which represents the closing price per share of our Common Stock on |
(2) | Except as otherwise set forth for Mr. Oringer, represents the target number of PSUs granted to each of our named executive officers in fiscal 2022. Vesting of the PSU award is contingent upon the Company’s achievement of annual Revenue and |
(3) | Mr. Oringer received a grant of 500,000 stock options on |
(4) | Mr. Oringer received a grant of 100,000 performance-based RSUs on April 24, 2014, which will vest if the average closing price for the Company’s Common Stock equals or exceeds $161.88 during any 90 consecutive calendar day period occurring between the five year anniversary of the date of grant and the earlier of Mr. Oringer’s termination of service with the Company or April 23, 2024, inclusive. |
(5) | This RSU vests in three annual installments of 33.3%, 33.3% and 33.4%, respectively, beginning July 1, 2022. |
(6) | Mr. Pavlovsky held no equity awards at fiscal year end. |
(7) | For Mr. Silvio, all RSUs scheduled to vest within one year of separation date were accelerated and vest and any PSUs subject to 2022 performance criteria vested upon achievement. |
(8) | This RSU vests in three annual installments of 33.3%, 33.3% and 33.4%, respectively, beginning April 1, 2021. |
(9) | This RSU vests in three annual installments of |
| | Option Awards | | | Stock Awards | |||||||
Executive Officer | | | Number of Shares Acquired on Exercise (#) | | | Value Realized on Exercise ($)(1) | | | Number of Shares Acquired on Vesting (#) | | | Value Realized on Vesting ($)(2) |
Jon Oringer | | | — | | | 0 | | | 140,323(3) | | | 12,608,357 |
Paul Hennessy | | | — | | | 0 | | | 0 | | | 0 |
Stan Pavlovsky | | | 41,551 | | | $848,955 | | | 114,046(4) | | | 10,294,103 |
Peter Silvio | | | — | | | 0 | | | 23,964(5) | | | 1,901,259 |
Jarrod Yahes | | | — | | | 0 | | | 21,572(6) | | | 2,134,828 |
(1) | The value realized on exercise represents the difference between the market value of our Common Stock at the time the applicable option was exercised and the exercise price of the option. |
(2) | Value realized was calculated by multiplying the number of shares that vested by the per share closing price of the Company’s Common Stock on the vesting date. The values do not include the payment |
(3) | After shares were withheld by the Company to satisfy tax withholding obligations that arose upon the vesting of Mr. Oringer’s restricted stock units, Mr. Oringer received 76,502 shares. |
(4) | After shares were withheld by the Company to satisfy tax withholding obligations that arose upon the vesting of Mr. Pavlovsky’s restricted stock units, Mr. Pavlovsky received 57,485 shares. |
(5) | After shares were withheld by the Company to satisfy tax withholding obligations that arose upon the vesting of Mr. Silvio’s restricted stock units, Mr. Silvio received 11,851 shares. |
(6) | After shares were withheld by the Company to satisfy tax withholding obligations that arose upon the vesting of Mr. Yahes’ restricted stock units, Mr. Yahes received 10,974 shares |
Named Executive Cause of Termination | | | Cash Severance Payment ($) | | | Pro-Rata Bonus ($)(1) | | | Acceleration of Equity Awards ($)(2) | | | Continued Participation in Medical & Dental Benefit Plans ($) | | | Outplacement Benefits ($) | | | Total ($) |
Jonathan Oringer | | | | | | | | | | | | | ||||||
Change in Control(3) | | | — | | | — | | | 12,969,436 | | | 32,637 | | | 5,000 | | | 13,007,073 |
Termination by Company without “cause” | | | — | | | — | | | 4,293,200 | | | 32,637 | | | 5,000 | | | 4,330,837 |
Death or disability | | | — | | | — | | | — | | | — | | | — | | | — |
Paul Hennessy | | | | | | | | | | | | | ||||||
Change in Control(3) | | | 1,050,000 | | | 700,000 | | | 27,708,472 | | | 21,533 | | | — | | | 29,480,006 |
Termination by Company without “cause” | | | 700,000 | | | 700,000 | | | 15,600,217 | | | 21,533 | | | — | | | 17,021,750 |
Death or disability | | | — | | | — | | | — | | | — | | | — | | | — |
Jarrod Yahes | | | | | | | | | | | | | ||||||
Change in Control(3) | | | 550,000 | | | 440,000 | | | 2,654,452 | | | 32,637 | | | — | | | 3,677,089 |
Termination by Company without “cause” | | | 550,000 | | | 440,000 | | | 1,100,161 | | | 32,637 | | | — | | | 2,122,797 |
Death or disability | | | — | | | — | | | — | | | — | | | — | | | — |
(1) | Aside from Mr. Oringer, each NEO’s employment agreement provides for a pro rata bonus for the year of termination, other than a termination in connection with a change in control, if performance targets are met and bonuses are paid to similarly situated executives, with such bonuses to be paid at the time such other bonuses are paid. Mr. Oringer’s Severance and CiC Agreement provides for a bonus payment equal to 100% of his target for the year of termination. Mr. Hennessy and Mr. Yahes’ employment agreements provide for a bonus payment equal to 100% of each of their targets for the year of termination in connection with a change in control. |
(2) | Represents the value of |
(3) | Represents change in control severance benefits based on a double-trigger arrangement, which assumes a “change in control” of the Company followed by the termination by the Company of an NEO without “cause”. |
Name | Grant Date | Approval Date(1) | Estimated Future Payouts Under Non-Equity Incentive Plan Awards ($) Target | Estimated Future Payouts Under Equity Incentive Plan Awards (#)(2) | All Other Stock Awards: Number of Shares of Stock or Units (#) | All Other Option Awards: Number of Securities Underlying Options (#) | Exercise or Base Price of Option Awards ($/Sh) | Grant Date Fair Value of Stock and Option Awards ($)(3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Threshold | Target | Maximum | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Jonathan Oringer | 4/1/20 | 2/11/20 | — | 93,697 | 124,930 | 187,394 | — | — | — | 4,762,332 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Stan Pavlovsky | — | — | 700,000(4) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/20 | 2/11/20 | — | 93,697 | 124,930 | 187,394 | — | — | — | 4,762,332 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/20 | 2/11/20 | — | — | — | — | 27,762 | — | — | 821,478 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Jarrod Yahes | — | — | 440,000 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
1/2/20 | 1/6/20 | — | — | — | — | 23,562 | — | — | 1,006,333 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
1/6/20 | 1/6/20 | — | — | — | — | — | 53,022 | 42.96 | 999,995 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/20 | 1/6/20 | — | 5,204 | 6,940 | 10,410 | — | — | — | 264,553 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Steven Ciardiello | — | — | 187,500 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/20 | 2/24/20 | — | — | — | — | 6,246 | — | — | 184,819 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/20 | 2/24/20 | — | 9,369 | 12,493 | 18,738 | — | — | — | 476,233 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Peter Silvio | — | — | 200,000 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/20 | 2/24/20 | — | 10,410 | 13,881 | 20,821 | — | — | — | 529,144 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Abraham Muchnick | — | — | 158,904(14) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/20 | 2/10/20 | — | — | — | — | 11,104 | — | — | 328,567 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/20 | 2/10/20 | — | 8,328 | 11,104 | 16,656 | — | — | — | 423,284 |
Option Awards | Stock Awards | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name | Grant Date | Number of Securities Underlying Unexercised Options (#) Exercisable | Number of Securities Underlying Unexercised Options (#) Unexercisable | Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#) | Option Exercise Price ($) | Option Expiration Date | Number of Shares or Units of Stock That Have Not Vested (#) | Market Value of Shares or Units of Stock That Have Not Vested ($)(1) | Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#)(2) | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($)(1) | |||||||||||||||||||||||||||||||||||||||||||||||||
Jonathan Oringer | 4/24/14 | — | — | 527,485(3) | 76.73 | 4/24/24 | — | — | 105,497(4) | 7,564,135 | |||||||||||||||||||||||||||||||||||||||||||||||||
3/1/16 | 263,742 | — | — | 32.95 | 3/1/26 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/19 | — | — | — | — | — | — | — | 98,468 | 7,060,156 | ||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/20 | — | — | — | — | — | — | — | 124,930 | 8,957,481 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Stan Pavlovsky | 4/1/19 | — | — | — | — | — | 10,996(5) | 788,413 | 32,822 | 2,353,337 | |||||||||||||||||||||||||||||||||||||||||||||||||
7/1/19 | 20,775 | 62,327(6) | 39.07 | 7/1/29 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/20 | — | — | — | — | — | 27,762(7) | 1,990,535 | 124,930 | 8,957,481 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Jarrod Yahes | 1/2/20 | — | — | — | — | — | 23,562(8) | 1,689,395 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
1/6/20 | — | 53,022(9) | — | 42.96 | 1/6/30 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/20 | — | — | — | — | — | — | — | 6,940 | 497,598 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Steven Ciardiello | 3/1/18 | — | — | — | — | — | 5,159(10) | 369,900 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/19 | — | — | — | — | — | 3,299(11) | 236,538 | 4,923 | 352,979 | ||||||||||||||||||||||||||||||||||||||||||||||||||
7/1/19 | — | — | — | — | — | 7,737(12) | 554,743 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/20 | — | — | — | — | — | 6,246(7) | 447,838 | 12,493 | 895,748 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Peter Silvio | 3/1/18 | — | — | — | — | — | 1,559(10) | 111,780 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
4/1/19 | — | — | — | — | — | 5,470(13) | 392,199 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
6/3/19 | — | — | — | — | — | 4,119(14) | 295,332 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
12/2/19 | — | — | — | — | — | 8,298(15) | 594,967 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
4/1/20 | — | — | — | — | — | — | — | 13,881 | 995,268 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Abraham Muchnick(16) | 4/1/20 | — | — | — | 11,104 | 796,157 | 11,104 | 796,157 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Name of Executive Cause of Termination | Cash Severance Payment ($) | Pro-Rata Bonus ($)(1) | Acceleration of Equity Awards ($)(2) | Continued Participation in Medical & Dental Benefit Plans ($) | Outplacement Benefits ($) | Total ($) | ||||||||||||||||||||||||||||||||
Jonathan Oringer | ||||||||||||||||||||||||||||||||||||||
Change in Control(3) | — | — | 23,581,772 | 30,319 | 5,000 | 23,617,087 | ||||||||||||||||||||||||||||||||
Termination by Company without “cause” | — | — | 7,615,616 | 30,316 | 5,000 | 7,650,932 | ||||||||||||||||||||||||||||||||
Death or disability | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Stan Pavlovsky | ||||||||||||||||||||||||||||||||||||||
Change in Control(3) | 700,000 | 700,000 | 16,123,497 | 26,986 | — | 17,550,483 | ||||||||||||||||||||||||||||||||
Termination by Company without “cause” | 700,000 | 700,000 | 6,232,233 | 26,986 | — | 7,659,219 | ||||||||||||||||||||||||||||||||
Death or disability | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Jarrod Yahes | ||||||||||||||||||||||||||||||||||||||
Change in Control(3) | 550,000 | 440,000 | 3,710,846 | — | — | 4,700,846 | ||||||||||||||||||||||||||||||||
Termination by Company without “cause” | 550,000 | 440,000 | 1,224,524 | — | — | 2,214,524 | ||||||||||||||||||||||||||||||||
Death or disability | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Steven Ciardiello | ||||||||||||||||||||||||||||||||||||||
Change in Control(3) | 375,000 | 187,500 | 2,857,747 | 30,316 | — | 3,450,563 | ||||||||||||||||||||||||||||||||
Termination by Company without “cause” | 375,000 | 187,500 | 1,018,068 | 30,316 | — | 1,610,884 | ||||||||||||||||||||||||||||||||
Death or disability | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Peter Silvio | ||||||||||||||||||||||||||||||||||||||
Change in Control(3) | 400,000 | 200,000 | 2,389,546 | 30,151 | — | 3,019,697 | ||||||||||||||||||||||||||||||||
Termination by Company without “cause” | 400,000 | 200,000 | 1,074,783 | 30,151 | — | 1,704,934 | ||||||||||||||||||||||||||||||||
Death or disability | — | — | — | — | — | — |
| | | | | | | | | | | | | | Year-end value of $100 invested on 12/31/2019 in: | | | | | ||||||||||||
Year | | | Summary Compensation Table Total for Paul Hennessy (1) $ | | | Compensation Actually Paid to Paul Hennessy (1)(2) $ | | | Summary Compensation Table Total for Stan Pavlovsky (3) $ | | | Compensation Actually Paid to Stan Pavlovsky (2)(3) | | | Average Summary Compensation Table Total for Non-CEO NEOs(4) $ | | | Average Compensation Actually Paid to Non-CEO NEOs(2)(4) $ | | | Total Shareholder Return $ | | | S&P Software & Svcs (TSR) $ | | | Net Income (in millions) $ | | | Adj. EBITDA (in millions) $ |
2022 | | | 20,883,260 | | | 21,664,800 | | | 5,913,330 | | | -15,094,475 | | | 4,003,445 | | | -5,820,337 | | | 127.83 | | | 107.5 | | | 76.1 | | | 218.1 |
2021 | | | n/a | | | n/a | | | 5,717,651 | | | 21,303,354 | | | 3,394,474 | | | 13,416,113 | | | 264.65 | | | 163.9 | | | 91.9 | | | 193.1 |
2020 | | | n/a | | | n/a | | | 7,025,759 | | | 16,488,485 | | | 2,418,455 | | | 5,666,638 | | | 169.71 | | | 152.2 | | | 71.8 | | | 154.9 |
(1) | Paul Hennessy became CEO of the Company on July 1, 2022. |
(2) | Deductions from, and additions to, total compensation in the Summary Compensation Table by year to calculate Compensation Actually Paid include: |
| | 2022 | | | 2021 | | | 2020 | |||||||||||||
| | Paul Hennessy | | | Stan Pavlovsky | | | Average Non- CEO NEOs | | | Stan Pavlovsky | | | Average Non- CEO NEOs | | | Stan Pavlovsky | | | Average Non- CEO NEOs | |
Total Compensation from Summary Compensation Table | | | $20,883,260 | | | $5,913,330 | | | 4,003,445 | | | 5,717,651 | | | 3,394,474 | | | 7,025,759 | | | 2,418,455 |
Adjustments for Equity Awards | | | | | | | | | | | | | | | |||||||
Adjustment for grant date values in the Summary Compensation Table | | | $(19,912,380) | | | $(5,636,921) | | | $(3,416,284) | | | $(4,131,482) | | | $(2,788,734) | | | $(5,583,809) | | | $(1,795,052) |
Year-end fair value of unvested awards granted in the current year | | | $20,781,301 | | | $— | | | $1,416,420 | | | $5,739,210 | | | $4,659,727 | | | $12,118,649 | | | $3,546,374 |
Year-over-year difference of year-end fair values for unvested awards granted in prior years | | | $— | | | $— | | | $(5,893,159) | | | $10,688,239 | | | $6,140,739 | | | $3,180,653 | | | $1,566,513 |
Fair values at vest date for awards granted and vested in current year | | | $— | | | $— | | | $25,894 | | | $— | | | $— | | | $— | | | $— |
Difference in fair values between prior year-end fair values and vest date fair values for awards granted in prior years | | | $(87,381) | | | $(3,321,003) | | | $(1,597,402) | | | $3,289,735 | | | $2,009,907 | | | $(252,767) | | | $(69,653) |
Forfeitures during current year equal to prior year-end fair value | | | $— | | | $(12,049,881) | | | $(359,251) | | | $— | | | $— | | | $— | | | $— |
Dividends or dividend equivalents not otherwise included in total compensation | | | $— | | | $— | | | $— | | | $— | | | $— | | | $— | | | $— |
Total Adjustments for Equity Awards | | | $781,540 | | | $(21,007,805) | | | $(9,823,783) | | | $15,585,703 | | | $10,021,639 | | | $9,462,726 | | | $3,248,182 |
Compensation Actually Paid (as calculated) | | | $21,664,800 | | | $(15,094,475) | | | $(5,820,337) | | | $21,303,354 | | | $13,416,113 | | | $16,488,485 | | | $5,666,638 |
(3) | Stan Pavlovsky became CEO of the Company on April 1, 2020 and served until May 3, 2022. |
(4) | Non-CEO NEOs reflect the average Summary Compensation Table total compensation and average Compensation Actually Paid for the following executives by year: |
Fee Category | | | Fiscal 2022 | | | Fiscal 2021 |
Audit Fees | | | $ 2,577,095 | | | $ 2,345,000 |
Audit-Related Fees | | | 115,000 | | | 0 |
Tax Fees | | | 158,070 | | | 190,200 |
All Other Fees | | | 5,847 | | | 5,847 |
Total Fees | | | $2,856,012 | | | $2,541,570 |
Fee Category | Fiscal 2020 | Fiscal 2019 | ||||||||||||||||||||||||||||||
Audit Fees | $ | 2,020,000 | $ | 2,583,000 | ||||||||||||||||||||||||||||
Audit-Related Fees | 200,000 | — | ||||||||||||||||||||||||||||||
Tax Fees | 158,700 | 130,291 | ||||||||||||||||||||||||||||||
All Other Fees | 3,870 | 3,870 | ||||||||||||||||||||||||||||||
Total Fees | $ | 2,382,570 | $ | 2,717,161 |
Members of the Shutterstock, Inc. Audit Committee |
Plan Category | | | Number of securities to be issued upon exercise of outstanding options, warrants and rights (a) | | | Weighted-average exercise price of outstanding options, warrants and rights (b) | | | Number of securities | remaining available for issuance under equity compensation plans (excluding securities reflected in column (a)) (c) | |||||||||||||||||||
Equity compensation plans approved by security holders | | | | | | | |||||||||||||||||||||||
Equity compensation plans not approved by security holders | | ||||||||||||||||||||||||||||
| | | | | |||||||||||||||||||||||||
Total | | 2,595,381(1) | | 61.32(2) | | 3,162,472(3) | |||||||||||||||||||||||
| | — | | | — | | | — |
(1) | Consists of | |||||||||||||||||||||||||
(2) | Weighted-average exercise price relates to outstanding stock options. RSUs are deemed to have an exercise price of zero and are excluded from the calculation. |
(3) |
John Lapham General Counsel and Corporate Secretary |
| | Year Ended December 31, | | ||||
| | 2022 | | | 2021 | | |
| | (in thousands) | | ||||
Net income | | | $76,103 | | | $91,883 | |
Add / (less) Non-GAAP adjustments: | | | | | | ||
Depreciation and amortization | | | 68,470 | | | 48,771 | |
Non-cash equity-based compensation | | | 35,740 | | | 36,179 | |
Impairment of lease and related assets | | | 18,664 | | | — | |
Other adjustments, net(1) | | | 4,163 | | | 3,370 | |
Provision for income taxes | | | 14,934 | | | 12,853 | |
Adjusted EBITDA | | | $218,074 | | | $193,056 | |
Adjusted EBITDA margin | | | 26.3% | | | 25.0% | |
(1) | Included in other adjustments, net is foreign currency transaction gains and losses, severance associated with strategic workforce optimizations and interest income and expense. |
| | Year Ended December 31, | | ||||
| | 2022 | | | 2021 | | |
Reported revenue (in thousands) | | | $827,826 | | | $773,415 | |
Revenue growth | | | 7% | | | 16% | |
Revenue growth on a constant currency basis | | | 11% | | | 15% | |
| | Year Ended December 31, | ||||
| | 2022 | | | 2021 | |
| | (in thousands) | ||||
Net cash provided by operating activities | | | $158,451 | | | $216,372 |
Capital expenditures | | | (43,296) | | | (28,125) |
Content acquisitions | | | (16,821) | | | (8,874) |
Payments related to long-term incentives related to acquisitions | | | — | | | — |
Free Cash Flow | | | $98,334 | | | $179,373 |