Compensation Discussion and Analysis
Overview
The following Compensation Discussion and Analysis describes the material elements of our executive compensation program for the fiscal year ended December 31, 2022.2023. It also provides an overview of our compensation philosophy and objectives, our process for setting executive compensation and how the Compensation Committee arrived at the specific compensation decisions for the individuals who served as our principal executive officer, principal financial officer and our three other most highly-compensated executive officers as offor the year ended December 31, 2022,2023, collectively referred to as our “named executive officers.”
Our named executive officers for the fiscal year ended December 31, 20222023 were:
Yancey Spruill, our former Chief Executive Officer;
W. Matthew Steinfort, our Chief Financial Officer;
William Sorenson, our former Chief Financial Officer;
Carly Brantz, our former Chief Marketing Officer;
Jeffrey Guy,Muhammad Aaqib Gadit, our Chief OperatingRevenue Officer; and
Gabriel Monroy, our former Chief Product Officer; and
Megan Wood, our former Chief Strategy and Product Officer.
As described in further detail below, onbelow:
On August 5, 2022, William Sorenson entered into a transition agreement with the Company (the “Transition“Sorenson Transition Agreement”) that provided for his retirement from the Company, effective as of August 31, 2023 (the “Retirement Date”), and set forth the terms of his employment through the Retirement Date.. Pursuant to the terms of such agreement, Mr. Sorenson transitioned to Executive Advisor upon the commencement of employment of his successor, W. Matthew Steinfort, on January 9, 2023.
On February 15, 2023 Carly Brantz entered into a mutual agreement withand departed the Company which provided for Ms. Brantz’s departure fromon the Company, effective as of April 1, 2023.Retirement Date.
On March 10, 2023, Gabriel Monroy resigned from the Company, effective as of March 31, 2023.
On August 24, 2023, the Company announced the implementation of a chief executive officer succession plan, pursuant to which Yancey Spruill would depart from the Company upon the commencement of employment of a new chief executive officer. On February 12, 2024, Padmanabhan Srinivasan joined the Company in the role of Chief Executive Officer and Mr. Spruill departed the Company. In connection with the announcement of the chief executive officer succession plan, Mr. Spruill entered into a separation agreement with the Company (the “Spruill Separation Agreement”).
On January 15, 2024, Megan Wood entered into a mutual agreement with the Company, which provided for Ms. Wood’s departure from the Company, effective as of January 16, 2024. In connection with her departure, Ms. Wood entered into a separation and release agreement with the Company (the “Wood Separation Agreement”).
Business Highlights
Our Business
DigitalOcean is a leading cloud computing platform offering on-demand infrastructure and platform tools for startups and small and medium-sized businesses (“SMBs”).growing digital businesses. We were founded with the guiding principle that the transformative benefits of the cloud should be easy to leverage, broadly accessible, reliable and affordable. Our platform simplifies cloud computing, enabling our customers to rapidly accelerate innovation and increase their productivity and agility. We believe that our focus on simplicity, community, open source and customer support are the four key differentiators of our business, driving a broad range of customers around the world to build their applications on our platform.
We offer mission-critical solutions across IaaS, including our Droplet virtual machines, storage and networking offerings; PaaS, including our Managed Database and Managed Kubernetes offerings; and SaaS, including our Managed Hosting and Marketplace offerings; and AI/ML, including our Machines, Notebooks and Deployments offerings. Our cloud platform was designed with simplicity in mind to ensure that startups and SMBsgrowing digital businesses can spend less time managing their infrastructure and more time building innovative applications that drive business growth.