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| | Envestnet, Inc. | | | ||||||||||
| 2023 Proxy Statement | | | |||||||||||
| and Notice of | | | |||||||||||
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INNISFREE M&A INCORPORATED Shareholders in the US and Canada may call toll-free: (877) 825-8964 Shareholders in other locations may call: +1 (412) 232-3651 Banks & Brokers may call collect: (212) 750-5833 Your vote is very important, and I encourage you to submit your proxy for this year’s Annual Meeting as promptly as possible. By Order of the Board of Directors, Shelly O’Brien Corporate Secretary | ||
| NOTICE OF ANNUAL MEETING | | | | | iii | | |
| TABLE OF CONTENTS | | | | | v | | |
| ABOUT ENVESTNET | | | | | 1 | | |
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| | | | | 1 | | | |
| PROXY STATEMENT SUMMARY | | | | | | | |
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| CORPORATE GOVERNANCE AND BOARD MATTERS | | | | | 6 | | |
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| ENVIRONMENTAL, SOCIAL AND GOVERNANCE | | | | | 25 | | |
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| EXECUTIVE COMPENSATION | | | | | 30 | | |
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| AUDIT MATTERS | | | | | 61 | | |
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| QUESTIONS AND ANSWERS ABOUT THE ANNUAL MEETING AND VOTING | | | | | | | |
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| | | | | 74 | | | ||
| APPENDIX | | | | | | |
| | | | | | | Board Recommendation | | | Page Reference | |
Proposal 1: | |||||||||||
| |||||||||||
| FOR each of the director | | | ||||||||
Proposal 2: | | | Approval, on an advisory basis, of | FOR | | | | ||||
Proposal 3: | | | Approval, on an advisory basis, of the frequency of future shareholder advisory votes on executive compensation; | | | FOR every “ONE YEAR” | | | | ||
| Proposal 4: | | | Ratification of the appointment of KPMG LLP as Envestnet’s independent registered public accounting firm for the fiscal year ending December 31, | FOR | | | | |||
| | | | such other business, if any, as may lawfully be brought before the meeting. | | | | | | | |
Board Committees: | ||||||||||||||||||||||||||
Director | Age | Director Since | Independent | Audit | Compensation | Compliance and Information Security | Nominating and Governance | Strategy | ||||||||||||||||||
Luis Aguilar | 68 | 2016 | Y | ü | Chair | |||||||||||||||||||||
Ross Chapin | 69 | 2001 | Y | ü | ü | Chair | ||||||||||||||||||||
William Crager* | 58 | 2020 | N | ü | ||||||||||||||||||||||
Gayle Crowell* | 71 | 2016 | Y | ü | Chair | ü | ||||||||||||||||||||
James Fox | 70 | 2015 | Y | ü | Chair | ü | ü | |||||||||||||||||||
Valerie Mosley | 62 | 2018 | Y | ü | ü | |||||||||||||||||||||
Gregory Smith | 58 | 2015 | Y | Chair | ü | ü | ü |
| | | ||||||||||
| | | Stock ownership requirements for directors and named executive officers (“NEOs”) | | ||||||||
| | Board diversity in terms of gender, race, ethnicity and tenure that provides a range of viewpoints, skills and experience | | | | Regular executive sessions of independent directors | | |||||
| | Regular Board and committee meetings | | | | Continuing education program for directors | | |||||
| | Annual Board and committee self-evaluations | | | | Annual review of | | |||||
| | Risk oversight by full Board and committees | | | | Code of Business Ethics and Conduct applicable to all directors, officers and employees | | |||||
| | Policy on public company board service (number of additional public company boards of directors limited to three) | | | | Trading policy that prohibits short-term speculative transactions in hedging and, with limited exceptions, pledging Envestnet securities | | |||||
| | Majority voting and director resignation policy in uncontested director elections | | | | Clawback Policy applicable to all directors and Section 16 officers | | |||||
| | Board oversight of environmental, social and governance matters | | | | | | | |
| | | Continued our commitment to the Envestnet Institute on Campus (“EIOC”), a program for university students, designed to bridge the gap between academic knowledge and the application of this knowledge in the Wealth and Asset Management industries. | | |
| | | Launched the first Diversity, Equity and Inclusion (“DEI”) mandatory training for all U.S. employees. Over 1,500 U.S. employees completed in 2022. Additional sessions will be offered in 2023. | | |
| | | Provided optional training on use of pronouns at work and included an option in the Human Resources Information System, our enterprise human resources system, for employees to update and share their pronouns. | | |
| | | Curated a DEI Social Learning Community on our online learning management system to provide employees with books, articles, and videos, etc. as additional learning resources on DEI topics. | | |
| | | Formed the third official employee resource group, “Enclusion,” for Black and African American employees. | | |
| | | Partnered with Ellevest, a woman-focused financial planning company, to offer 1:1 financial and career coaching and webinars and access to the Ellevest platform. | |
| | ||||
Partnered with not-for-profit | | ||||
Leveraged Envestnet | | ||||
| | Continued employee suite of benefits, | | ||
| | | Continued progress to reduce Envestnet’s energy usage and carbon emissions by allowing most of our workforce to work remotely and supporting flexible work schedules. | | |
| | | Lessened impact on the environment by reducing our real estate footprint by 30%. | |
| What We Do | | | What We Don’t Do | | |
■ Pay for performance by basing a substantial part of NEO compensation on Company and individual performance | ||||||
■ Deliver the majority of | ||||||
with half in the form of PSUs ■ Require meaningful stock ownership ■ Maintain a | ||||||
robust Clawback Policy applicable to cash and equity-based incentives ■ Retain an independent compensation consultant | ||||||
■ Conduct | ||||||
ongoing shareholder engagement ■ Conduct an annual say-on-pay advisory vote | ||||||
| | ■ No single-trigger vesting ■ No excise-tax “gross-ups” ■ No excessive perquisites ■ No nonqualified or supplemental ■ No option repricing without prior shareholder ■ No hedging of Company’s securities by employees | |
| | Annual incentives were earned at 49% – 51% of target | | | | PSUs that concluded their performance period on December 31, 2022 vested at 34% of target | | | | Equity award values for 2022, reflecting grants made in the first quarter of 2023, were reduced by an average of 39% compared to 2021 equity award values | | |
| | | | THE BOARD OF DIRECTORS RECOMMENDS A VOTE “FOR” THE ELECTION OF EACH NOMINEE AS A DIRECTOR OF ENVESTNET. | | |
| Luis Aguilar Age 69 | | | Mr. Aguilar has served as a member of our Board since March 2016. Mr. Aguilar was a Commissioner at the U.S. Securities and Exchange Commission (“SEC”) from July 2008 through December 2015. Prior to his appointment as an SEC Commissioner, Mr. Aguilar was a partner with the international law firm of McKenna Long & Aldridge, LLP (subsequently merged with Dentons US LLP), specializing in corporate and securities law. Mr. Aguilar’s previous experience includes serving as the General Counsel, Head of Compliance, Executive Vice President and Corporate Secretary of Invesco, Inc. with responsibility for all legal and compliance matters regarding Invesco Institutional. While at Invesco, he was also Managing Director for Latin America and president of one of Invesco’s broker-dealers. His career also includes tenure as a partner at several prominent national law firms: Alston & Bird LLP; Kilpatrick Townsend & Stockton LLP; and Powell Goldstein Frazer & Murphy LLP (subsequently merged with Bryan Cave LLP). He began his legal career as an attorney at the SEC. Mr. Aguilar represented the SEC as its liaison to both the North American Securities Administrators Association and to the Council of Securities Regulators of the Americas. He also served as the sponsor of the SEC’s first Investor Advisory Committee. Mr. Aguilar serves as a director of Donnelley Financial Solutions, Inc. He has been a principal in Falcon Cyber Investments, a firm focused on cybersecurity since January 2016. He was a director of MiMedx Group, Inc. from March 17, 2017 through September 19, 2019. Mr. Aguilar earned a J.D. from the University of Georgia School of Law, an M.A. (Laws in Taxation) from Emory University and a B.S. from Georgia Southern University. Mr. Aguilar has completed certifications from the National Association of Corporate Directors (NACD) in Directorship, Board Leadership and Cyber Risk Oversight. Mr. Aguilar’s qualifications to serve on our Board include his experience as an SEC Commissioner and his extensive experience in corporate, securities and compliance matters, especially as they apply to investment advisors, investment companies and broker-dealers. Mr. Aguilar brings to our Board expertise in investment management, compliance, risk management, cybersecurity, corporate governance, government relations and public policy. | |
| Gayle Crowell Age 72 | | | Ms. Crowell has served as a member of our Board since March 2016. She served as a member of the Yodlee, Inc. (“Yodlee”) board of directors from July 2002 until November 19, 2015, when Yodlee was acquired by the Company, and as lead independent director of Yodlee between March 2014 and November 2015. Ms. Crowell served as an operational business consultant for Warburg Pincus LLC, a private equity firm, from June 2001 to January 2019. From January 2000 to June 2001, Ms. Crowell served as president of Epiphany, Inc., a developer of customer relationship management software which was acquired by SSA Global Technologies, Inc. in September 2005. Ms. Crowell currently serves on the boards of directors of Pliant Therapeutics, a biotechnology company developing therapies for fibrotic diseases, Hercules Capital, a specialty finance company serving the technology and life sciences sectors, GTreasury, a fully integrated cash and risk management solution providing strategic treasury management, Instinct Science, a veterinary practice software and workflow platform, and Centerbase, a full-service, cloud-based legal practice management solution. Ms. Crowell earned a B.S. in Education from the University of Nevada at Reno. Ms. Crowell also attended the Directors College Program at Stanford Law School and the Executive Program for Growing Companies at Stanford Graduate School of Business. Ms. Crowell’s qualifications to serve on our Board include her experience as a senior executive in the technology industry. Ms. Crowell brings to our Board expertise in technology and software, cybersecurity, compliance, digital transformation, sales and marketing and leadership. | |
| James Fox Age 71 | | | Mr. Fox has served as a member of our Board since February 2015 and Chair of the Board since March 2020. Mr. Fox retired as Non-Executive Chairman of FundQuest, Inc., upon its acquisition by the Company, effective December 2011 after serving in that role since September 2010 and, prior to that, as President and Chief Executive Officer starting in October 2005. Mr. Fox has over 30 years of senior executive experience with the BISYS Group, Inc., First Data Corporation, eOne Global, and PFPC. He serves as a director of Madison CF (UK) Limited, The Ultimus Group LLC and Yukon YC Holdings LLC. He also served as a director of Brinker Capital Holdings, Inc. from July 2015 until September 2020. Mr. Fox participated in the Advanced Management Program at the Wharton School of the University of Pennsylvania. He earned an M.B.A. in Finance from Suffolk University and a B.A. in Economics from the State University of New York at Oswego. Mr. Fox’s qualifications to serve on our Board include his extensive experience as a Chief Executive Officer and business leader in the financial services industry and his knowledge gained from service on the boards of various other companies. Mr. Fox brings to our Board expertise in wealth management, accounting and financial reporting, public company leadership and mergers, acquisitions and other strategic transactions. | |
| Wendy Lane Age 71 | | | Ms. Lane was appointed to our Board in March 2023. Ms. Lane has served as Chair of Lane Holdings, Inc., a private equity investment company, since 1992. Previously, she was a Principal and Managing Director of the Investment Banking Group at Donaldson, Lufkin & Jenrette Securities Corporation, serving in these and other positions from 1981 to 1992. Prior to that, she was an investment banker at the Goldman Sachs Group, Inc. from 1977 to 1980. Ms. Lane currently serves on the board of directors of Verisk Analytics, Inc., a data analytics and risk assessment firm. She previously served on the boards of directors of NextPoint Financial, Inc., which was initially a special purpose acquisition company, but currently provides consumer finance and tax advisory services, from August 2020 to July 2021, CoreLogic, Inc., a financial, property, and consumer information analytics firm, from November 2020 to February 2021, Willis Towers Watson PLC, an advisory and solutions company, from April 2004 to May 2022, MSCI Inc., an analytics company, from January 2015 to April 2019, and UPM-Kymmene Oyj, a Finnish forest industry company, from March 2005 to April 2018 and five other public company boards. Ms. Lane earned a B.A. in Mathematics and French from Wellesley College, graduating with highest honors as a Durant Scholar, and an M.B.A. from Harvard Business School. Ms. Lane’s qualifications to serve on our Board include her extensive experience as a board member of public companies in data and analytics and other regulated industries. Ms. Lane brings to our Board expertise in corporate governance, investment management, finance, compensation, strategy and transformation and capital allocation. | |
| Valerie Mosley Age 62 | | | Ms. Mosley has served as a member of our Board since October 2018. Ms. Mosley is the founder and CEO of BrightUp Wealth, a company that provides financial advice to historically underserved markets, including low-income and minority investors. Ms. Mosely is also the CEO of Valmo Ventures, a company that creates, collaborates, and invests in companies, assets, and efforts that have significant potential to grow, profit and add value to society. Ms. Mosley was Senior Vice President, Partner, Portfolio Manager and Investment Strategist at Wellington Management Company, LLP, a $1.2 trillion global money management firm. Ms. Mosley also chaired the firm’s Industry Strategy Group, which took a long-term perspective to identify trends, headwinds, and tailwinds impacting various industries. As a member of several investment strategy groups, Ms. Mosley helped establish investment parameters to which team portfolio managers adhered. Ms. Mosley serves as a board member at DraftKings, Caribou and Eaton Vance Funds. Ms. Mosley received an M.B.A. from the University of Pennsylvania and a B.A. from Duke University. She serves on the non-profit board New Profit and the McClean Hospital board. Ms. Mosley’s qualifications to serve on the Board include her extensive experience in the wealth management business. Ms. Mosley brings to our Board expertise in investment management, the perspectives of public company investors, accounting and financial reporting and strategic planning. | |
| Gregory Smith Age 58 | | | Mr. Smith has served as a member of our Board since February 2015. Mr. Smith currently is an Executive-in-Residence and Lecturer at the University of Wisconsin-Milwaukee’s Lubar School of Business. He was Managing Partner of Barnett Management Advisors, LLC from 2012 until 2020. Prior to joining the University of Wisconsin-Milwaukee, Mr. Smith served as Senior Vice President and Chief Financial Officer of the Marshall & Ilsley Corporation and M&I Bank from 2006 until the company’s sale to BMO Harris Bank in 2011. Prior to joining Marshall & Ilsley, Mr. Smith held progressively senior roles during a 16-year Wall Street investment banking career, including six years as a Managing Director. He is currently a Director and Vice Chair of Church Mutual Holding Company, Inc. (f/k/a Church Mutual Insurance Company). He also served as a Director of its subsidiary, CM Vantage Specialty Insurance Company until the formation of the holding company in 2020. He is a board member of the University School of Milwaukee and the Milwaukee Symphony Orchestra. He served as a Trustee of the Milwaukee County Pension Fund in 2014 and 2015. Mr. Smith earned an A.B. with honors from Princeton University and an M.B.A. with honors from The University of Chicago. More recently, he has been recognized as a Board Leadership Fellow by the National Association of Corporate Directors. Mr. Smith’s qualifications to serve on our Board include his extensive experience in accounting, liquidity, budgeting and forecasting, treasury, capital management, tax matters and mergers and acquisitions, including as a Chief Financial Officer. Mr. Smith brings to our Board expertise in finance, investment strategy and capital allocation, strategic transactions, financial reporting and accounting. | |
| William Crager Age 59 | | | Mr. Crager serves as our Chief Executive Officer and has served as a member of our Board since March 2020. Previously, Mr. Crager served as our Interim Chief Executive Officer between October 2019 and March 2020, Chief Executive of Envestnet Wealth Solutions since January 2019, and President of Envestnet since 2002. Prior to joining us, Mr. Crager served as Managing Director of Marketing and Client Services at Rittenhouse Financial Services, Inc., an investment management firm affiliated with Nuveen Investments. Mr. Crager received a B.A. from Fairfield University where he majored in economics and now serves on the Fairfield Board of Trustees. Mr. Crager’s qualifications to serve on our Board include his extensive senior executive experience in the financial services industry, having served in leadership roles at Envestnet since 2002. Mr. Crager brings to our Board expertise in financial services, wealth management, FinTech, digital transformation, operations and public company leadership. | |
| Lauren Taylor Wolfe Age 44 | | | Ms. Taylor Wolfe was appointed to our Board in March 2023. Ms. Taylor Wolfe is the co-founder and has served as the Managing Partner of Impactive Capital LP, an active impact investing firm, since its founding in April 2018. Prior to founding Impactive Capital LP, Ms. Taylor Wolfe served as Managing Director and Investing Partner at Blue Harbour Group, L.P., an investment management firm, from 2007 to January 2018. Earlier in her career, Ms. Taylor Wolfe served as a Portfolio Manager at SIAR Capital LLC, an investment firm specializing in undervalued and emerging growth companies, from 2003 to 2007, and as an Associate at Diamond Technology Partners, a strategic technology consulting firm, from 2000 to 2003. Ms. Taylor Wolfe previously served on the board of directors of HD Supply Holdings, Inc., an industrial distributor, from March 2017 until it was acquired by The Home Depot, Inc. in December 2020. Ms. Taylor Wolfe has served on the 30% Club Steering Committee, an organization dedicated to increasing gender balance on boards and in executive leadership positions, from December 2016 to January 2019 and was an Angel member of 100 Women in Finance from 2016 to 2020. Ms. Taylor Wolfe earned a B.S. in Applied Economics and Management, magna cum laude, from Cornell University and an M.B.A. from The Wharton School at the University of Pennsylvania. Ms. Taylor Wolfe’s qualifications to serve on our Board include her experience in the investment management industry. Ms. Taylor Wolfe brings to our Board expertise in capital allocation, finance and the perspectives of public company investors. | |
| Barbara Turner Age 59 | | | Ms. Turner was appointed to our Board in March 2023. She has more than 35 years of leadership experience in the financial services industry. Most recently, Ms. Turner was President and Chief Executive Officer of Ohio National Financial Services, Inc., the first woman and person of color to hold this role. During her 26 year tenure at Ohio National, Ms. Turner served as Vice Chair, Chief Operating Officer, Chief Administrative Officer and Chief Compliance Officer for Ohio National’s parent company and President and Chief Executive Officer of its broker-dealer and investment advisory subsidiaries. Previously, she held roles at Cox Financial Corporation, Reynolds DeWitt Securities, Provident Bank, and Central Trust Bank. Ms. Turner is the Board Chair of the United Way of Greater Cincinnati and the incoming Board Chair of the Urban League of Greater Southwestern Ohio. She also serves on the board of The Christ Hospital Health Network. Ms. Turner previously served as Vice Chair of the Cincinnati USA Regional Chamber of Commerce, the Vice Chair of the insurance industry trade association LL Global (LIMRA) and on the Board of Directors of the American Council of Life Insurers. Ms. Turner attended the University of Cincinnati and is a graduate of the SIFMA/Wharton Securities Industry Institute (SII) and the FINRA Institute at Wharton Certified Regulatory and Compliance Professional (CRCP) programs. Ms. Turner’s qualifications to serve on our Board include her track record of exceptional leadership as a senior executive in the financial services industry. Ms. Turner brings to our Board expertise in financial services, compliance and information security, operations and leadership. | |
| Ross Chapin | | | Effective as of our 2023 Annual Meeting, Ross Chapin will retire from our Board. We extend our sincere gratitude to Mr. Chapin for his service as a director. | |
| Gender | | | Racial/Ethnic Diversity* | | | Tenure | |
| | | | | |
| | | | Luis Aguilar | | | Ross Chapin | | | William Crager | | | Gayle Crowell | | | James Fox | | | Valerie Mosley | | | Gregory Smith | | | Meetings Held in 2022 | |
| Audit Committee | | | | | | | | | | | | | | | | | | | | | 5 | | |||
| Compensation Committee | | | | | | | | | | | | | | | | | | | | 7 | | ||||
| Compliance and Information Security Committee | | | | | | | | | | | | | | | | | | | | | 4 | | |||
| Nominating and Governance Committee | | | | | | | | | | | | | | | | | | | 6 | | |||||
| Strategy Committee | | | | | | | | | | | | | | | | | | | | 5 | |
| | | = Chair | | | | | = Member | | | | |
Audit Committee | | |||
2022 Members: Mr. Smith (Chair) Mr. Chapin Mr. Fox Committee Meetings held in 2022: 5 | | | The Audit Committee provides oversight of the integrity of our financial statements and financial reporting process, the system of internal controls, the audit process, the performance of our internal audit program, and the performance, qualification, and independence of the independent registered public accounting firm KPMG LLP. Our Audit Committee hires, determines the compensation of, and decides the scope of services performed by our independent registered public accounting firm. No member of our Audit Committee currently serves on the audit committees of more than two public companies (including Envestnet). Our Audit Committee charter provides that if a member of the Audit Committee simultaneously serves on the audit committees of more than three public companies, the Board will determine if such simultaneous service would impair the ability of such member to effectively serve on the Audit Committee. Only independent directors may serve on the Audit Committee. The Board has determined that each member of the Audit Committee satisfies the applicable audit committee independence requirements of the NYSE and the Exchange Act. The Board has determined that each member of the Audit Committee satisfies the financial literacy requirements of the NYSE and that each is an audit committee financial expert, as that term is defined under SEC rules. For additional information about the qualifications of the Audit Committee members, see their respective biographies set forth in “Proposal No. 1: Election of Directors.” Audit Committee meetings are usually held in conjunction with the regularly scheduled meetings of the Board. At least quarterly, the Audit Committee met with management, KPMG LLP, the Chief Financial Officer, the Principal Accounting Officer and the General Counsel to review, among other matters, the overall scope and plans for the independent audit, and the results of such audit; critical accounting estimates and policies; and compliance with our conflict of interest and Code of Business Conduct and Ethics policies. At least quarterly in 2022, the Audit Committee met or had an opportunity to meet in executive session (i.e., without management present) with representatives of KPMG LLP to discuss the results of KPMG LLP’s work. As of March 2023, Ms. Turner and Ms. Taylor Wolfe each joined the Audit Committee. | |
Compensation Committee | | |||
2022 Members: Mr. Fox (Chair) Mr. Chapin Ms. Crowell Mr. Smith Committee Meetings held in 2022: 7 | | | The Compensation Committee is responsible for evaluating the performance of the CEO based on corporate goals and objectives and, with the other independent directors, sets the CEO’s compensation. The Compensation Committee also evaluates the performance of our senior management and determines executive compensation. Additionally, the Compensation Committee reviews and makes recommendations to the full Board regarding director compensation. The Compensation Committee consults with the Nominating and Governance Committee and works with the CEO and Chairperson of the Board in the Nominating and Governance Committee’s review of succession planning for Envestnet’s CEO, Chairperson of the Board and, as deemed necessary, any other executive officers. Only independent directors may serve on the Compensation Committee. The Board has determined that each member of the Compensation Committee satisfies the applicable compensation committee independence requirements of the NYSE. | |
Compliance and Information Security Committee | | |||
2022 Members: Ms. Crowell (Chair) Mr. Aguilar Ms. Mosley Committee Meetings held in 2022: 4 | | | The Compliance and Information Security Committee provides oversight of, and reviews, assesses and makes recommendations to our Board regarding, our regulatory compliance programs and information technology security framework. A majority of the directors that serve on the Compliance and Information Security Committee must be independent. The current committee is comprised entirely of independent directors. As of March 2023, Ms. Turner joined the Compliance and Information Security Committee. | |
Nominating and Governance Committee | | |||
2022 Members: Mr. Aguilar (Chair) Ms. Crowell Mr. Fox Ms. Mosley Mr. Smith Committee Meetings held in 2022: 6 | | | The responsibilities of the Nominating and Governance Committee include identifying individuals qualified to become Board members, recommending director nominees to the Board, and developing, assessing and recommending corporate governance guidelines. The Nominating and Governance Committee reviews at least annually the Company’s charitable giving, including the Envestnet Cares initiative. In addition to general corporate governance matters, the Nominating and Governance Committee assists the Board and its committees in their self-evaluations. The Nominating and Governance Committee, in consultation with the Compensation Committee, reviews annually, or more often if appropriate, succession planning for Envestnet’s CEO, Chairperson of the Board and, as deemed necessary, any other executive officers. A majority of the directors that serve on the Nominating and Governance Committee must be independent. Currently, the Nominating and Governance Committee is composed entirely of independent directors, as defined by the NYSE listing standards. As of March 2023, Ms. Lane was appointed to the Nominating and Governance Committee, and Mr. Smith and Ms. Crowell no longer serve on the Nominating and Governance Committee. | |
Strategy Committee | | |||
2022 Members: Mr. Chapin (Chair) Mr. Crager Mr. Fox Mr. Smith Committee Meetings held in 2022: 5 | | | The Strategy Committee reviews and provides guidance to the management team and the Board with respect to the Company’s strategic initiatives. The Strategy Committee reviews and makes recommendations to the Board regarding specific strategic initiatives, including acquisitions, divestitures, joint ventures, and strategic alliances. A majority of the directors that serve on the Strategy Committee must be independent. As of March 2023, Mr. Smith replaced Mr. Chapin as the Chair of the Strategy Committee, and Ms. Crowell joined the Strategy Committee. | |
| Name | | | Fees Earned or Paid in Cash ($)(1) | | | Stock Awards ($)(2) | | | Total ($) | | |||||||||
| Luis Aguilar | | | | | 60,000 | | | | | | 195,000 | | | | | | 255,000 | | |
| Ross Chapin | | | | | 63,250 | | | | | | 204,750 | | | | | | 268,000 | | |
| Gayle Crowell | | | | | 62,250 | | | | | | 201,750 | | | | | | 264,000 | | |
| James Fox | | | | | 88,750 | | | | | | 281,250 | | | | | | 370,000 | | |
| Valerie Mosley | | | | | 57,250 | | | | | | 186,750 | | | | | | 244,000 | | |
| Gregory Smith | | | | | 67,500 | | | | | | 217,500 | | | | | | 285,000 | | |
Name | Fees Earned or Paid in Cash ($)(1) | Stock Awards ($)(2) | Total ($) | ||||||||||||||||||||
Luis Aguilar | 59,500 | 172,281 | 231,781 | ||||||||||||||||||||
Anil Arora | 48,554 | — | 48,554 | ||||||||||||||||||||
Ross Chapin | 61,000 | 199,272 | 260,272 | ||||||||||||||||||||
Gayle Crowell | 62,000 | 183,105 | 245,105 | ||||||||||||||||||||
James Fox | 85,000 | 234,698 | 319,698 | ||||||||||||||||||||
Valerie Mosley | 57,000 | 167,782 | 224,782 | ||||||||||||||||||||
Gregory Smith | 67,500 | 196,250 | 263,750 |
| Luis Aguilar | | | | | 1,745 | | | | Options | |
| | | 2,252 | | | | Restricted Stock Units | | |||
| | | | 23,192 | | | | Options | | ||
| | | 2,312 | | | | Restricted Stock Units | | |||
| | | | 1,745 | | | | Options | | ||
| | | 2,352 | | | | Restricted Stock Units | | |||
| | | | 8,082 | | | | Options | | ||
| | | 3,275 | | | | Restricted Stock Units | | |||
| | | | — | | | | Options | | ||
| | | 2,152 | | | | Restricted Stock Units | | |||
| | | | 8,038 | | | | Options | | ||
| | ||||||||||
| 2,573 | | |||||||||
Restricted Stock Units | |||||||||||
Name | Shares Held | Options Exercisable within 60 Days (1) | Unvested RSUs Vesting within 60 Days | Total Beneficial Ownership | Beneficial Ownership Percentages | |||||||||||||||||||||||||||
William Crager (2) (3) | 307,756 | 50,585 | — | 358,341 | * | |||||||||||||||||||||||||||
Peter D’Arrigo | 105,722 | 34,935 | — | 140,657 | * | |||||||||||||||||||||||||||
Stuart DePina | 72,023 | 1,565 | — | 73,588 | * | |||||||||||||||||||||||||||
Shelly O’Brien | 34,546 | 8,931 | — | 43,477 | * | |||||||||||||||||||||||||||
Luis Aguilar | 16,235 | 1,745 | — | 17,980 | * | |||||||||||||||||||||||||||
Ross Chapin | 59,492 | 23,192 | — | 82,684 | * | |||||||||||||||||||||||||||
Gayle Crowell (4) | 13,732 | 1,745 | — | 15,477 | * | |||||||||||||||||||||||||||
James Fox | 22,339 | 8,082 | — | 30,421 | * | |||||||||||||||||||||||||||
Valerie Mosley | 6,749 | — | — | 6,749 | * | |||||||||||||||||||||||||||
Gregory Smith | 20,898 | 8,038 | — | 28,936 | * | |||||||||||||||||||||||||||
All Directors and Executive Officers as a Group | 659,492 | 138,818 | — | 798,310 | 1.44 | % |
Name and Address of Beneficial Owner | Number of Shares Beneficially Owned | Percent of Class* | ||||||||||||
BlackRock Inc. (1) | 7,591,595 | 13.8 | % | |||||||||||
55 East 52nd Street | ||||||||||||||
New York, NY 10055 | ||||||||||||||
The Vanguard Group (2) | 5,130,077 | 9.3 | % | |||||||||||
100 Vanguard Blvd. | ||||||||||||||
Malvern, PA 19355 | ||||||||||||||
JPMorgan Chase & Co. (3) | 3,247,571 | 5.9 | % | |||||||||||
383 Madison Avenue | ||||||||||||||
New York, NY 10179 | ||||||||||||||
* Beneficial ownership percentages are based on 55,182,250 shares of our common stock outstanding as of March 21, 2022. |
| | | | | | |||
William Crager | Chief Executive Officer | |||||||
| | Peter D’Arrigo | Chief Financial Officer | |||||
| ||||||||
Shelly O’Brien | Chief Legal Officer, General Counsel and Corporate Secretary | |
| Executive Summary | | | | | | | |
| Key Highlights | Pay and Performance Alignment | What We Do and Don’t Do | Looking Ahead | | | | | 32 | | |
| Compensation Design | | | | | | | |
| Guiding Principles | Compensation Framework | Use of Market Data | Shareholder Engagement | | | | | 35 | | |
| 2022 Compensation Decisions | | | | | | | |
| 2022 Incentive Compensation Overview | Base Salary | Annual Incentive Program | Annual Equity Incentive Awards | Settlement of the 2019 PSUs | Mr. DePina Separation | Benefits and Perquisites | | | | | 38 | | |
| Compensation Governance | | | | | | | |
| Role of the Compensation Committee | Role of Advisors | Stock Ownership Guidelines | Clawback Policy | Tax Considerations | | | | | 43 | | |
| Compensation Committee Report | | | | | | |
| | Current NEO Compensation at a Glance | | | |||||||||||||||
| | The following table summarizes the Compensation Committee’s determinations in respect of NEOs’ 2022 annual compensation, as well as the comparative values for 2021. Reflecting our commitment to performance-based compensation, the 2022 annual compensation average individual decrease was 33.5% from the prior year due to below target achievements under our incentive plans. The table below is different from the SEC required Summary Compensation Table (“SCT”) and reflects how Envestnet manages executive compensation, with equity award values determined with reference to prior year performance. Compensation values are presented in thousands of dollars. | | | |||||||||||||||
| | Current NEOs(1) | | | Year | | | Total Annual Compensation | | | Salary(2) | | | Annual Cash Incentive(3) | | | Equity Incentive(4) | | |
| | William Crager Chief Executive Officer | | | 2022 | | | 4,383 | | | 646 | | | 382 | | | 3,355 | | |
| 2021 | | | 6,880 | | | 600 | | | 780 | | | 5,500 | | | ||||
| | Peter D’Arrigo Chief Financial Officer | | | 2022 | | | 1,941 | | | 446 | | | 275 | | | 1,220 | | |
| 2021 | | | 2,945 | | | 405 | | | 540 | | | 2,000 | | | ||||
| | Shelly O’Brien Chief Legal Officer, General Counsel and Corporate Secretary | | | 2022 | | | 979 | | | 374 | | | 147 | | | 458 | | |
| 2021 | | | 1,403 | | | 365 | | | 288 | | | 750 | | | ||||
| | | | | |||||||||||||||
| | Notes. (1) Mr. DePina is excluded from the table given his separation during the year. (2) Salary as paid during the year as reported in the SCT for the relevant year. (3) The cash incentive paid under the Annual Incentive Program (“AIP”) in respect of performance during the relevant year, as reported in the SCT. (4) The approved equity incentive award value based on prior year performance, granted in Q1 following the conclusion of the relevant year. Values differ from the SCT which captures grant date fair values in the year in which the award was made. | | |
2016 ($) | 2017 ($) | 2018 ($) | 2019 ($) | 2020 ($) | 2021 ($) | |||||||||||||||||||||||||||||||||
GAAP Net Income (Loss) in Millions | (55.6) | (3.3) | 4.0 | (17.2) | (2.6) | 12.7 | ||||||||||||||||||||||||||||||||
GAAP Net Income (Loss) per Diluted Share attributable to Envestnet* | (1.30) | (0.08) | 0.12 | (0.33) | (0.06) | 0.24 |
| | | | | |
| Captured more of the addressable market | | | ■ Achieved net asset flows in AUM/A of $57.3 billion, primarily from growth with existing advisors ■ AUM accounted for 56% of AUM/A net flows ■ Increased accounts on our platform by 5% to 18.3 million ■ Increased AUM/A accounts per advisor by 9.4% to over 70 accounts per advisor ■ Increased advisors and accounts utilizing our overlay services by 26% and 33%, respectively ■ Expanded advisors and accounts using our direct indexing capabilities by 48% and 30%, respectively | |
| Modernized our digital engagement with customers | | | ■ Launched our Next Generation Proposal tool and enabled it at over 87% of client firms ■ Grew financial planning through open application programming interfaces (“APIs”) and MyBlocks™ ■ Increased new financial advisors leveraging MyBlocks™ by over 41% ■ Advanced our digital connectivity to our clients by increasing insights delivered per day by 82% to over 20 million | |
| Strengthened our ecosystem with new offerings | | | ■ Entered into a partnership with FNZ, a global platform provider in the wealth management sector, which will provide a fully digital, end-to-end custody offering to our clients and open an international distribution channel for the Wealth Data Platform ■ Launched the API Developer Portal, which is integrated with Envestnet’s API Management System, providing on-demand documentation for APIs, single sign-on and data extracts across the enterprise ■ Successfully completed multiple acquisitions that expand our capabilities and addressable market | |
| Improved internal automation and efficiencies | | | ■ Successfully reduced expenses by an estimated $10 million to $13 million on a go forward basis by outsourcing certain Data & Analytics back-office operations ■ Reduced real estate footprint by 30% ■ Processed 220 million trade orders, a record high and representing a 31% increase on 2021 | |
| | Annual incentives were earned at 49% – 51% of target | | | | PSUs that concluded their performance period on December 31, 2022 vested at 34% of target | | | | Equity award values for 2022, reflecting grants made in the first quarter of 2023, were reduced by an average of 39% compared to 2021 equity award values | | |
| What We Do | | | What We Don’t Do | |
| ■ Pay for performance by basing a substantial part of NEO compensation on Company and individual performance ■ Deliver the majority of NEOs’ pay in the form of equity-based compensation, with half in the form of PSUs ■ Require meaningful stock ownership ■ Maintain a robust Clawback Policy applicable to cash and equity-based incentives ■ Retain an independent compensation consultant ■ Conduct ongoing shareholder engagement ■ Conduct an annual say-on-pay advisory vote | | | ■ No single-trigger vesting of equity awards following a change in-control ■ No excise-tax “gross-ups” ■ No excessive perquisites ■ No nonqualified or supplemental retirement plans ■ No option repricing without prior shareholder approval ■ No hedging of Company’s securities by employees | |
| 2021 PSUs Granted in 2022 | | | 2022 PSUs Granted in 2023 | |
| 2022 AIP | | | 2023 AIP | |
| 2023 Performance Measures | | | Where It Is Used | | | Why It Is Important | |
| Adjusted Revenue Growth | | | AIP | | | Measures our top-line results and our ability to grow our customer base and/or relationships | |
| Adjusted EBITDA | | | AIP | | | Measures our bottom-line results, our ability to increase profitability and our ability to reinvest and generate future returns for shareholders | |
| Individual/Team | | | AIP | | | Enables an assessment of qualitative and quantitative contributions at the individual and team level that are not directly relevant at an enterprise-wide level and/or captured in our financials; these outcomes have a direct impact on our current and future economic results and the success of our organization | |
| Adjusted EBITDA Margin | | | PSUs | | | Measures our operational efficiency in terms of how revenue and operating expenses move relative to each other as we grow, and ultimately contribute to our profitability | |
| Relative TSR | | | PSUs | | | Demonstrates our ability to deliver superior returns to our shareholders | |
| Element | | | CEO 2022 Mix(1) | | | Other NEO 2022 Mix(1,2) | | | Key Features | | |||
Base Salary | | | | | ■ Reviewed but not necessarily adjusted annually ■ Level informed by market competitiveness, individual performance and scope of responsibility | | ||||||||
Annual Cash Incentive | | | | | | | ■ Target value established based on ■ Earned based on performance relative to ■ 75% based on financial ■ 25% based on individual/team performance ■ Payouts capped at 150% of target and subject to our Clawback Policy | | ||||||
| Equity Incentive | | | | | | | ■ Grant value informed by prior year company and individual performance | ■ 50% granted as PSUs subject to a three-year performance period, and ■ PSUs vest subject to performance | |||||
|
| Former Peer | | | | 2022/2023 Compensation Peer Group | | ||||||||
| | New Peers | | |||||||||||
| | | | | ■ ACI Worldwide, Inc. ■ AssetMark Financial Holdings, Inc. ■ Avantax, Inc.(1) ■ Axos Financial, Inc. ■ Bottomline Technologies Inc. ■ FactSet Research Systems Inc. ■ Fair Isaac Corporation ■ Guidewire Software, Inc. ■ LPL Financial Holdings, Inc. | | | | ■ MarketAxess Holdings Inc. ■ Morningstar, Inc. ■ MCSI Inc. ■ New Relic, Inc. ■ SEI Investments Company ■ SS&C Technologies, Inc. ■ Zendesk, Inc. | | | | ■ Informatica, Inc. ■ Nutanix, Inc. ■ Verint Systems, Inc. | |
| 2021/2022 Compensation Peer Group | | |
| Current NEOs | | | 2022 AIP Paid in 2023 | | | 2022 Equity Award Value (Granted in 2023) | | | Total Variable 2022 Compensation | | | 2021 AIP Paid in 2022 | | | 2021 Equity Award Value (Granted in 2022) | | | Total Variable 2021 Compensation | | | Year-on-Year Change in Total Variable Compensation | | |||||||||||||||||||||
| William Crager | | | | $ | 382,200 | | | | | $ | 3,355,000 | | | | | $ | 3,737,200 | | | | | $ | 780,000 | | | | | $ | 5,500,000 | | | | | $ | 6,280,000 | | | | | | -40.5% | | |
| Peter D’Arrigo | | | | $ | 275,000 | | | | | $ | 1,220,000 | | | | | $ | 1,495,000 | | | | | $ | 540,000 | | | | | $ | 2,000,000 | | | | | $ | 2,540,000 | | | | | | -41.1% | | |
| Shelly O’Brien | | | | $ | 147,000 | | | | | $ | 457,500 | | | | | $ | 604,500 | | | | | $ | 288,000 | | | | | $ | 750,000 | | | | | $ | 1,038,000 | | | | | | -41.8% | | |
| Current NEOs | | | 2022 Base Salary | | | Base Salary Increase | | ||||||
| William Crager | | | | $ | 650,000 | | | | | | 8.3% | | |
| Peter D’Arrigo | | | | $ | 450,000 | | | | | | 11.1% | | |
| Shelly O’Brien | | | | $ | 375,000 | | | | | | 2.7% | | |
| Measure(1) | | | Weight | | | Threshold | | | Target | | | Exceeds | | | Maximum | | | 2022 Actual | | | 2022 Payout | | |||||||||||||||
| Adjusted Revenue ($M) | | | | | 45% | | | | 1,224 | | | 1,341 – 1,408 | | | | | 1,478 | | | | | | 1,619 | | | | | | 1,240 | | | | | | 54% | | |
| Adjusted EBITDA ($M) | | | | | 15% | | | | 239 | | | 262 – 275 | | | | | 289 | | | | | | 316 | | | | | | 220 | | | | | | 0% | | |
| Adjusted EPS ($) | | | | | 15% | | | | 1.96 | | | 2.14 – 2.25 | | | | | 2.36 | | | | | | 2.59 | | | | | | 1.86 | | | | | | 0% | | |
| Payout as % of Target | | | | | | | | | 40% - 80% | | | 80% - 110% | | | | | 125% | | | | | | 150% | | | | | | — | | | | | | 24% | | |
| Current NEOs | | | 2022 Target AIP | | | 2022 Actual AIP | | | 2022 Actual AIP as a % of Target | | |||||||||
| William Crager | | | | $ | 780,000 | | | | | $ | 382,200 | | | | | | 49% | | |
| Peter D’Arrigo | | | | $ | 540,000 | | | | | $ | 275,000 | | | | | | 51% | | |
| Shelly O’Brien | | | | $ | 288,000 | | | | | $ | 147,000 | | | | | | 51% | | |
| Target Equity Mix | | | ■ RSUs vest over | ■ PSUs vest subject to the achievement of pre-set performance goals over a three-year performance period, subject to a maximum payout factor of 150% of target. Threshold performance results in 50% of the target PSUs vesting, with ■ Both RSUs and | ||
Reflecting strong performance in 2021, the | ||||||||
| Current NEOs | | | 2021 Target Value | | | Grant Date Fair Value(1) | | | RSUs Awarded | | | PSUs Awarded | | ||||||||||||
| William Crager | | | | $ | 5,500,000 | | | | | $ | 5,751,055 | | | | | | 36,755 | | | | | | 36,755 | | |
| Peter D’Arrigo | | | | $ | 2,000,000 | | | | | $ | 2,091,222 | | | | | | 13,365 | | | | | | 13,365 | | |
| Shelly O’Brien | | | | $ | 750,000 | | | | | $ | 784,228 | | | | | | 5,012 | | | | | | 5,012 | | |
| 2022-2024 Measures(1)(2) | | | Measurement Basis | | | Weight | | | Threshold | | | Target | | | Maximum | |
| Adjusted Revenue Growth | | | Three-year CAGR | | | 33.33% | | | 8% | | | 14% | | | 20% | |
| Adjusted EPS Growth | | | Two-year CAGR | | | 33.33% | | | 10% | | | 16% | | | 22% | |
| Relative TSR vs. Russell 2000 Index Constituents | | | Three-year point-to-point | | | 33.34% | | | 35th Percentile | | | 50th Percentile | | | 75th Percentile | |
| Payout as % of Target | | | | | | | | | 50% | | | 100% | | | 150% | |
| Current NEOs | | | 2022 Target Value | | | RSUs Awarded | | | PSUs Awarded | | |||||||||
| William Crager | | | | $ | 3,355,000 | | | | | | 26,674 | | | | | | 26,674 | | |
| Peter D’Arrigo | | | | $ | 1,220,000 | | | | | | 9,699 | | | | | | 9,699 | | |
| Shelly O’Brien | | | | $ | 457,500 | | | | | | 3,637 | | | | | | 3,637 | | |
| 2023-2025 Measures(1)(2) | | | Measurement Basis | | | Weight | | | Threshold | | | Target | | | Maximum | |
| Adjusted EBITDA Margin | | | Final year | | | 50% | | | 23% | | | 25% | | | 27% | |
| Relative TSR vs. Russell 2000 Index Constituents | | | Three-year point-to-point | | | 50% | | | 35th Percentile | | | 50th Percentile | | | 75th Percentile | |
| Payout as % of Target | | | | | | | | | 50% | | | 100% | | | 150% | |
| 2020-2022 Measures(1) | | | Measurement Basis | | | Weight | | | Threshold | | | Target | | | Maximum | | | Actual | | | Payout | |
| Adjusted Revenue Growth | | | Three-year CAGR | | | 25% | | | 8% | | | 14% | | | 20% | | | 10.9% | | | 74.1% | |
| Adjusted EBITDA Growth | | | Three-year CAGR | | | 25% | | | 10% | | | 16% | | | 22% | | | 4.4% | | | 0% | |
| Adjusted EPS Growth | | | Three-year CAGR | | | 25% | | | 10% | | | 16% | | | 22% | | | (1.6)% | | | 0% | |
| Relative TSR vs. Russell 2000 Index Constituents | | | Three-year point-to-point | | | 25% | | | 35th Percentile | | | 50th Percentile | | | 75th Percentile | | | 38th Percentile | | | 61.4% | |
| Payout as % of Target | | | | | | | | | 50% | | | 100% | | | 150% | | | | | | 33.9% | |
| Healthcare | | | Welfare | | | Retirement | |
| ■ Health, dental and vision insurance ■ Health care and dependent care flexible spending accounts | | | ■ Life and accidental death & dismemberment insurance ■ Short and long-term disability | | | ■ 401(k) plan, with company match | |
| Additional Benefits | | |||
| ■ Expanded mental health services & counseling ■ Tuition reimbursement and student debt repayment ■ Additional wellness benefits | | | ■ Adoption and surrogacy benefits ■ Parental stipend ■ College scholarship plan for employees’ children | |
Name | 2021 AIP and Bonus (Paid in 2022) | Number of RSUs Granted in 2022 (for 2021 performance) | Number of PSUs Granted in 2022 (for 2021 performance) | Total Number of Units (1) | |||||||||||||||||||||||||||||||
William Crager | 780,000 | 36,755 | 36,755 | 73,510 | |||||||||||||||||||||||||||||||
Peter D’Arrigo | 540,000 | 13,365 | 13,365 | 26,730 | |||||||||||||||||||||||||||||||
Stuart DePina | 650,000 | 15,555 | 15,555 | 31,110 | |||||||||||||||||||||||||||||||
Shelly O’Brien | 288,000 | 5,012 | 5,012 | 10,024 |
Name | 2021 Salary ($) (1) | Increase for 2021 | 2022 Salary ($) (2) | Increase for 2022 | |||||||||||||||||||||||||||||||
William Crager ............................................................... | 600,000 | 0 | % | 650,000 | 8.3 | % | |||||||||||||||||||||||||||||
Peter D’Arrigo ................................................................ | 405,015 | 0 | % | 450,000 | 11.1 | % | |||||||||||||||||||||||||||||
Stuart DePina ................................................................. | 500,016 | 0 | % | 500,016 | 0 | % | |||||||||||||||||||||||||||||
Shelly O’Brien ............................................................... | 364,993 | 0 | % | 375,000 | 2.7 | % |
Metric Weighting | Threshold ($) | Target ($) | Exceeds ($) | Maximum ($) | 2021 Actual ($) | Payout by Metric | ||||||||||||||||||||||||||||||||||||||
Adjusted Revenue ($mil.) | 45 | % | 978 | 1,071 - 1,125 | 1,181 | 1,294 | 1,187 | 125 | % | |||||||||||||||||||||||||||||||||||
Adjusted EBITDA ($mil.) | 15 | % | 203 | 222 - 233 | 245 | 268 | 262 | 135 | % | |||||||||||||||||||||||||||||||||||
Adjusted EPS | 15 | % | 1.78 | 1.95 - 2.05 | 2.15 | 2.36 | 2.42 | 140 | % | |||||||||||||||||||||||||||||||||||
Individual/Team Performance Evaluation | 25 | % | Based on Individual Assessment | |||||||||||||||||||||||||||||||||||||||||
Payout as % of Target | 40% - 80% | 80% - 110% | 125% | 150 | % |
Target AIP ($) | AIP Payout ($) | ||||||||||||||||||||||
William Crager | 660,000 | 780,000 | |||||||||||||||||||||
Peter D’Arrigo | 450,000 | 540,000 | |||||||||||||||||||||
Stuart DePina | 550,000 | 650,000 | |||||||||||||||||||||
Shelly O’Brien | 240,000 | 288,000 |
Metric | Measurement | Metric Weighting | Threshold | Target | Maximum | |||||||||||||||||||||||||||
Adjusted Revenue Growth | CAGR | 33 | % | 8% | 14% | 20% | ||||||||||||||||||||||||||
Adjusted EPS Growth | Final Year | 33 | % | 10% | 16% | 22% | ||||||||||||||||||||||||||
Relative TSR compared to Russell 2000 Index Constituents | Jan 1, 2021 - Dec 31, 2023 | 33 | % | 35th Percentile | Median | 75th Percentile | ||||||||||||||||||||||||||
Payout as % of Target | 50% | 100% | 150% |
Name | Target Equity Value ($) | PSUs Awarded | Weight of PSUs | RSUs Awarded | Weight of RSUs | |||||||||||||||||||||||||||
William Crager | 5,500,000 | 36,755 | 50 | % | 36,755 | 50 | % | |||||||||||||||||||||||||
Peter D’Arrigo | 2,000,000 | 13,365 | 50 | % | 13,365 | 50 | % | |||||||||||||||||||||||||
Stuart DePina | 2,327,638 | 15,555 | 50 | % | 15,555 | 50 | % | |||||||||||||||||||||||||
Shelly O’Brien | 750,000 | 5,012 | 50 | % | 5,012 | 50 | % |
| Minimum requirements | | | ■ CEO: 600% of base salary ■ Other NEOs: 300% of base salary | |
| Time horizon | | | ■ Five years from becoming an NEO | |
| Counted equity interests | | | ■ Shares owned directly by the NEO (including those held as a joint tenant or as tenant in common) ■ RSUs (vested and unvested) ■ Stock options that are fully vested and exercisable ■ Shares owned in a self-directed IRA ■ Shares owned or held for the benefit of a spouse or minor children | |
| Retention requirement | | | ■ NEOs are required to retain all shares acquired through option exercises and other stock awards until their respective ownership requirements are met ■ Sale of shares is not permitted until the guidelines are met | |
| Covered persons | | | ■ Section 16 officers ■ Any other officer of the Company designated by the Compensation Committee ■ Individuals that are no longer considered Section 16 officers and individuals otherwise considered covered persons who separate from the Company continue to be subject to the Clawback Policy | |
| Triggering events | | | A covered person engages in fraud or other intentional misconduct that: ■ Materially relates to a restatement of our financial statements, or ■ Results in material financial or reputational harm to the company | |
| Covered compensation | | | All incentive compensation (cash and equity) that is: ■ Awarded, earned, vested or settled during or after the fiscal year in which a clawback event occurs, or ■ Is outstanding during or has a performance period that relates to the fiscal year in which the clawback event occurs The entire pre-tax value of covered compensation is subject to forfeiture or recoupment, at the discretion of the Compensation Committee | |
| Name and Title | | | Year | | | Salary ($) | | | Bonus ($) | | | Stock Awards ($)(2) | | | Non-Equity Incentive Plan Compensation Plan Compensation ($)(3) | | | Change in Nonqualified Deferred Compensation Earnings ($)(4) | | | All Other Compensation ($)(5) | | | Total ($) | | ||||||||||||||||||||||||
| William Crager Chief Executive Officer | | | | | 2022 | | | | | | 646,000 | | | | | | — | | | | | | 5,751,055 | | | | | | 382,200 | | | | | | — | | | | | | 141,936 | | | | | | 6,921,191 | | |
| | | 2021 | | | | | | 600,000 | | | | | | — | | | | | | 4,769,575 | | | | | | 780,000 | | | | | | — | | | | | | 23,054 | | | | | | 6,172,629 | | | |||
| | | 2020 | | | | | | 581,250 | | | | | | — | | | | | | 4,988,552 | | | | | | 660,000 | | | | | | — | | | | | | 24,197 | | | | | | 6,253,999 | | | |||
| Peter D’Arrigo Chief Financial Officer | | | | | 2022 | | | | | | 446,000 | | | | | | — | | | | | | 2,091,222 | | | | | | 275,000 | | | | | | — | | | | | | 112,362 | | | | | | 2,924,584 | | |
| | | 2021 | | | | | | 405,015 | | | | | | — | | | | | | 1,788,591 | | | | | | 540,000 | | | | | | — | | | | | | 16,354 | | | | | | 2,749,960 | | | |||
| | | 2020 | | | | | | 398,347 | | | | | | — | | | | | | 1,870,727 | | | | | | 450,000 | | | | | | — | | | | | | 21,046 | | | | | | 2,740,120 | | | |||
| Stuart DePina(6) Former President | | | | | 2022 | | | | | | 250,008 | | | | | | — | | | | | | 2,433,891 | | | | | | — | | | | | | — | | | | | | 2,685,932 | | | | | | 5,369,831 | | |
| | | 2021 | | | | | | 500,016 | | | | | | — | | | | | | 2,316,646 | | | | | | 650,000 | | | | | | — | | | | | | 20,170 | | | | | | 3,486,832 | | | |||
| | | 2020 | | | | | | 498,348 | | | | | | — | | | | | | 2,231,621 | | | | | | 550,000 | | | | | | — | | | | | | 161,890 | | | | | | 3,441,859 | | | |||
| Shelly O’Brien Chief Legal Officer, General Counsel and Corporate Secretary | | | | | 2022 | | | | | | 374,000 | | | | | | — | | | | | | 784,228 | | | | | | 147,000 | | | | | | — | | | | | | 22,673 | | | | | | 1,327,901 | | |
| | | 2021 | | | | | | 364,993 | | | | | | — | | | | | | 725,410 | | | | | | 288,000 | | | | | | — | | | | | | 20,369 | | | | | | 1,398,772 | | | |||
| | | 2020 | | | | | | 358,980 | | | | | | — | | | | | | 758,708 | | | | | | 240,000 | | | | | | — | | | | | | 25,180 | | | | | | 1,382,867 | | |
Equity Awards (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Name and Title | Year | Salary ($) | Bonus ($)(2) | Stock Units ($)(3) | Option Awards ($) | Non-Equity Incentive Comp ($)(4) | All Other Comp ($)(5) | Total ($) | ||||||||||||||||||||||||||||||||||||||||||
William Crager | 2021 | 600,000 | — | 4,769,575 | — | 780,000 | 23,054 | 6,172,629 | ||||||||||||||||||||||||||||||||||||||||||
Chief Executive Officer | 2020 | 581,250 | — | 4,988,552 | — | 660,000 | 24,197 | 6,253,999 | ||||||||||||||||||||||||||||||||||||||||||
2019 | 375,000 | — | 2,002,939 | — | 500,000 | 24,047 | 2,901,986 | |||||||||||||||||||||||||||||||||||||||||||
Peter D’Arrigo | 2021 | 405,015 | — | 1,788,591 | — | 540,000 | 16,354 | 2,749,960 | ||||||||||||||||||||||||||||||||||||||||||
Chief Financial Officer | 2020 | 398,347 | — | 1,870,727 | — | 450,000 | 21,046 | 2,740,120 | ||||||||||||||||||||||||||||||||||||||||||
2019 | 325,000 | — | 1,088,763 | — | 310,000 | 20,361 | 1,744,124 | |||||||||||||||||||||||||||||||||||||||||||
Stuart DePina | 2021 | 500,016 | — | 2,316,646 | — | 650,000 | 20,170 | 3,486,832 | ||||||||||||||||||||||||||||||||||||||||||
President | 2020 | 498,348 | — | 2,231,621 | — | 550,000 | 161,890 | 3,441,859 | ||||||||||||||||||||||||||||||||||||||||||
2019 | 480,000 | 10,000 | 5,915,411 | — | 453,989 | 142,101 | 7,001,501 | |||||||||||||||||||||||||||||||||||||||||||
Shelly O’Brien | 2021 | 364,993 | — | 725,410 | — | 288,000 | 20,369 | 1,398,772 | ||||||||||||||||||||||||||||||||||||||||||
Chief Legal Officer, General Counsel and Corporate Secretary | 2020 | 358,980 | — | 758,708 | — | 240,000 | 25,180 | 1,382,867 |
| Name | | | | | | | | | Estimated Future Payouts Under Non-Equity Incentive Plan Awards(1) | | | Estimated Future Payouts Under Equity Incentive Plan Awards(2) | | | All Other Stock Awards: Number of Shares of Stock or Units(3) | | | Fair Value of RSUs and PSUs on Grant Date ($/Share) | | | Grant Date Fair Value of Stock and Option Awards ($) | | |||||||||||||||||||||||||||||||||||||||
| Grant Date(1) | | | Threshold ($) | | | Target ($) | | | Maximum ($) | | | Threshold (Shares) | | | Target (Shares) | | | Maximum (Shares) | | ||||||||||||||||||||||||||||||||||||||||||
| William Crager | | | | | 2/28/2022 | | | | | | 312,000 | | | | | | 780,000 | | | | | | 1,170,000 | | | | | | 18,378 | | | | | | 36,755 | | | | | | 55,133 | | | | | | — | | | | | | 81.65 | | | | | | 3,001,046 | | |
| | | | | | 2/28/2022 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 36,755 | | | | | | 74.82 | | | | | | 2,750,009 | | |
| Peter D’Arrigo | | | | | 2/28/2022 | | | | | | 216,000 | | | | | | 540,000 | | | | | | 810,000 | | | | | | 6,683 | | | | | | 13,365 | | | | | | 20,048 | | | | | | — | | | | | | 81.65 | | | | | | 1,091,252 | | |
| | | | | | 2/28/2022 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 13,365 | | | | | | 74.82 | | | | | | 999,969 | | |
| Stuart DePina | | | | | 2/28/2022 | | | | | | 260,000 | | | | | | 650,000 | | | | | | 975,000 | | | | | | 7,778 | | | | | | 15,555 | | | | | | 23,333 | | | | | | — | | | | | | 81.65 | | | | | | 1,270,066 | | |
| | | | | | 2/28/2022 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 15,555 | | | | | | 74.82 | | | | | | 1,163,825 | | |
| Shelly O’Brien | | | | | 2/28/2022 | | | | | | 115,200 | | | | | | 288,000 | | | | | | 432,000 | | | | | | 2,506 | | | | | | 5,012 | | | | | | 7,518 | | | | | | — | | | | | | 81.65 | | | | | | 409,230 | | |
| | | | | | 2/28/2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 5,012 | | | | | | 74.82 | | | | | | 374,998 | | |
Estimated Future Payouts Under Non-Equity Incentive Plan Awards (1) | Estimated Future Payouts Under Equity Incentive Plan Awards (2) | All Other Stock Awards: Number of Shares of Stock or Units (3) | Fair Value of RSUs and PSUs on Grant Date ($/Share) | Grant Date Fair Value of Stock and Option Awards (3) ($) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name | Grant Date (1) | Threshold ($) | Target ($) | Maximum ($) | Threshold (Shares) | Target (Shares) | Maximum (Shares) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
William Crager | 3/11/2021 | 264,000 | 660,000 | 990,000 | 17,072 | 34,144 | 51,216 | — | 69.40 | 2,369,594 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
3/11/2021 | — | — | — | — | — | — | 34,144 | 70.29 | 2,399,982 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Peter D’Arrigo | 3/11/2021 | 180,000 | 450,000 | 675,000 | 6,402 | 12,804 | 19,206 | — | 69.40 | 888,598 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
3/11/2021 | — | — | — | — | — | — | 12,804 | 70.29 | 899,993 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Stuart DePina | 3/11/2021 | 220,000 | 550,000 | 825,000 | 6,145 | 12,289 | 18,434 | — | 69.40 | 852,857 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
3/11/2021 | — | — | — | — | — | — | 20,825 | 70.29 | 1,463,789 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Shelly O’Brien | 3/11/2021 | 96,000 | 240,000 | 360,000 | 2,597 | 5,193 | 7,790 | — | 69.40 | 360,394 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
3/11/2021 | — | — | — | — | — | — | 5,193 | 70.29 | 365,016 |
| | | | | | | | | | Option Awards(1) | | | Stock Awards(2)(3) | | ||||||||||||||||||||||||||||||
| Name | | | Grant Date | | | Number of Securities Underlying Unexercised Options (#) Exercisable | | | Number of Securities Underlying Unexercised Options (#) Unexercisable | | | Option Exercise Price ($) | | | Option Expiration Date | | | Number of Shares or Units of Stock that have not Vested (#) | | | Market Value of Shares or Units of Stock That Have Not Yet Vested ($) | | |||||||||||||||||||||
| William Crager | | | | | 2/28/2013 | | | | | | 13,500 | | | | | | — | | | | | | 15.34 | | | | | | 2/28/2023 | | | | | | — | | | | | | — | | |
| | | 2/28/2014 | | | | | | 14,100 | | | | | | — | | | | | | 41.84 | | | | | | 2/28/2024 | | | | | | — | | | | | | — | | | |||
| | | 2/27/2015 | | | | | | 11,400 | | | | | | — | | | | | | 53.88 | | | | | | 2/27/2025 | | | | | | — | | | | | | — | | | |||
| | | 2/29/2016 | | | | | | 5,852 | | | | | | — | | | | | | 20.51 | | | | | | 2/28/2026 | | | | | | — | | | | | | — | | | |||
| | | 3/28/2017 | | | | | | 5,733 | | | | | | — | | | | | | 31.70 | | | | | | 3/28/2027 | | | | | | — | | | | | | — | | | |||
| | | 2/28/2020 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 31,797 | | | | | | 1,961,875 | | | |||
| | | 2/28/2020 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,650 | | | | | | 163,505 | | | |||
| | | 3/11/2021 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 34,144 | | | | | | 2,106,685 | | | |||
| | | 3/11/2021 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 14,229 | | | | | | 877,929 | | | |||
| | | 2/28/2022 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 36,755 | | | | | | 2,267,784 | | | |||
| | | 2/28/2022 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 36,755 | | | | | | 2,267,784 | | | |||
| Peter D’Arrigo | | | | | 2/28/2013 | | | | | | 8,000 | | | | | | — | | | | | | 15.34 | | | | | | 2/28/2023 | | | | | | — | | | | | | — | | |
| | | 2/28/2014 | | | | | | 10,600 | | | | | | — | | | | | | 41.84 | | | | | | 2/28/2024 | | | | | | — | | | | | | — | | | |||
| | | 2/27/2015 | | | | | | 8,250 | | | | | | — | | | | | | 53.88 | | | | | | 2/27/2025 | | | | | | — | | | | | | — | | | |||
| | | 2/29/2016 | | | | | | 4,235 | | | | | | — | | | | | | 20.51 | | | | | | 2/28/2026 | | | | | | — | | | | | | — | | | |||
| | | 3/28/2017 | | | | | | 3,850 | | | | | | — | | | | | | 31.70 | | | | | | 3/28/2027 | | | | | | — | | | | | | — | | | |||
| | | 2/28/2020 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 11,924 | | | | | | 735,711 | | | |||
| | | 2/28/2020 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 994 | | | | | | 61,330 | | | |||
| | | 3/11/2021 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 12,804 | | | | | | 790,007 | | | |||
| | | 3/11/2021 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,336 | | | | | | 329,231 | | | |||
| | | 2/28/2022 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 13,365 | | | | | | 824,621 | | | |||
| | | 2/28/2022 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 13,365 | | | | | | 824,621 | | | |||
| Stuart DePina | | | | | 2/28/2020 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 10,400 | | | | | | 641,680 | | |
| | | 2/28/2020 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,530 | | | | | | 94,401 | | | |||
| | | 3/11/2021 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 12,289 | | | | | | 758,231 | | | |||
| | | 3/11/2021 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 8,680 | | | | | | 535,556 | | | |||
| | | 2/28/2022 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 15,555 | | | | | | 959,744 | | | |||
| | | 2/28/2022 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 15,555 | | | | | | 959,744 | | | |||
| Shelly O’Brien | | | | | 2/27/2015 | | | | | | 4,800 | | | | | | — | | | | | | 53.88 | | | | | | 2/27/2025 | | | | | | — | | | | | | — | | |
| | | 2/29/2016 | | | | | | 2,464 | | | | | | — | | | | | | 20.51 | | | | | | 2/28/2026 | | | | | | — | | | | | | — | | | |||
| | | 3/28/2017 | | | | | | 1,667 | | | | | | — | | | | | | 31.70 | | | | | | 3/28/2027 | | | | | | — | | | | | | — | | | |||
| | | 2/28/2020 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 4,836 | | | | | | 298,381 | | | |||
| | | 2/28/2020 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 404 | | | | | | 24,927 | | | |||
| | | 3/11/2021 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,193 | | | | | | 320,408 | | | |||
| | | 3/11/2021 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,165 | | | | | | 133,581 | | | |||
| | | 2/28/2022 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,012 | | | | | | 309,240 | | | |||
| | | 2/28/2022 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,012 | | | | | | 309,240 | | |
Option Awards (1) | Stock Awards (2)(3) | |||||||||||||||||||||||||||||||||||||||||||
Name | Grant Date | Number of Securities Underlying Unexercised Options (#) Exercisable | Number of Securities Underlying Unexercised Options (#) Unexercisable | Option Exercise Price ($) | Option Expiration Date | Number of Shares or Units of Stock that have not Vested (#) | Market Value of Shares or Units of Stock That Have Not Yet Vested ($) | |||||||||||||||||||||||||||||||||||||
William Crager | 2/29/2012 | 13,594 | — | 12.45 | 2/28/2022 | — | — | |||||||||||||||||||||||||||||||||||||
2/28/2013 | 13,500 | — | 15.34 | 2/28/2023 | — | — | ||||||||||||||||||||||||||||||||||||||
2/28/2014 | 14,100 | — | 41.84 | 2/28/2024 | — | — | ||||||||||||||||||||||||||||||||||||||
2/27/2015 | 11,400 | — | 53.88 | 2/27/2025 | — | — | ||||||||||||||||||||||||||||||||||||||
2/29/2016 | 5,852 | — | 20.51 | 2/28/2026 | — | — | ||||||||||||||||||||||||||||||||||||||
3/28/2017 | 5,733 | — | 31.70 | 3/28/2027 | — | — | ||||||||||||||||||||||||||||||||||||||
2/28/2019 | — | — | — | — | 15,981 | 1,267,933 | ||||||||||||||||||||||||||||||||||||||
2/28/2019 | — | — | — | — | 1,332 | 105,681 | ||||||||||||||||||||||||||||||||||||||
2/28/2020 | — | — | — | — | 31,797 | 2,522,774 | ||||||||||||||||||||||||||||||||||||||
2/28/2020 | — | — | — | — | 13,250 | 1,051,255 | ||||||||||||||||||||||||||||||||||||||
3/11/2021 | — | — | — | — | 34,144 | 2,708,985 | ||||||||||||||||||||||||||||||||||||||
3/11/2021 | — | — | — | — | 34,144 | 2,708,985 | ||||||||||||||||||||||||||||||||||||||
Peter D’Arrigo | 2/29/2012 | 10,195 | — | 12.45 | 2/28/2022 | — | — | |||||||||||||||||||||||||||||||||||||
2/28/2013 | 8,000 | — | 15.34 | 2/28/2023 | — | — | ||||||||||||||||||||||||||||||||||||||
2/28/2014 | 10,600 | — | 41.84 | 2/28/2024 | — | — | ||||||||||||||||||||||||||||||||||||||
2/27/2015 | 8,250 | — | 53.88 | 2/27/2025 | — | — | ||||||||||||||||||||||||||||||||||||||
2/29/2016 | 4,235 | — | 20.51 | 2/28/2026 | — | — | ||||||||||||||||||||||||||||||||||||||
3/28/2017 | 3,850 | — | 31.70 | 3/28/2027 | — | — | ||||||||||||||||||||||||||||||||||||||
2/28/2019 | — | — | — | — | 8,687 | 689,227 | ||||||||||||||||||||||||||||||||||||||
2/28/2019 | — | — | — | — | 724 | 57,442 | ||||||||||||||||||||||||||||||||||||||
2/28/2020 | — | — | — | — | 11,924 | 946,050 | ||||||||||||||||||||||||||||||||||||||
2/28/2020 | — | — | — | — | 4,970 | 394,320 | ||||||||||||||||||||||||||||||||||||||
3/11/2021 | — | — | — | — | 12,804 | 1,015,869 | ||||||||||||||||||||||||||||||||||||||
3/11/2021 | — | — | — | — | 12,804 | 1,015,869 | ||||||||||||||||||||||||||||||||||||||
Stuart DePina | 3/28/2017 | 1,565 | — | 31.70 | 3/28/2027 | — | — | |||||||||||||||||||||||||||||||||||||
2/28/2019 | — | — | — | — | 11,883 | 942,797 | ||||||||||||||||||||||||||||||||||||||
2/28/2019 | — | — | — | — | 991 | 78,626 | ||||||||||||||||||||||||||||||||||||||
6/11/2019 | — | — | — | — | 31,552 | 2,503,336 | ||||||||||||||||||||||||||||||||||||||
6/11/2019 | — | — | — | — | 5,260 | 417,328 | ||||||||||||||||||||||||||||||||||||||
2/28/2020 | — | — | — | — | 10,400 | 825,136 | ||||||||||||||||||||||||||||||||||||||
2/28/2020 | — | — | — | — | 7,647 | 606,713 | ||||||||||||||||||||||||||||||||||||||
3/11/2021 | — | — | — | — | 12,289 | 975,009 | ||||||||||||||||||||||||||||||||||||||
3/11/2021 | — | — | — | — | 20,825 | 1,652,256 | ||||||||||||||||||||||||||||||||||||||
Shelly O'Brien | 2/27/2015 | 4,800 | — | 53.88 | 2/27/2025 | — | — | |||||||||||||||||||||||||||||||||||||
2/29/2016 | 2,464 | — | 20.51 | 2/28/2026 | — | — | ||||||||||||||||||||||||||||||||||||||
3/28/2017 | 1,667 | — | 31.70 | 3/28/2027 | — | — | ||||||||||||||||||||||||||||||||||||||
2/28/2019 | — | — | — | — | 465 | 36,893 | ||||||||||||||||||||||||||||||||||||||
2/28/2020 | — | — | — | — | 4,836 | 383,688 | ||||||||||||||||||||||||||||||||||||||
2/28/2020 | — | — | — | — | 2,016 | 159,949 | ||||||||||||||||||||||||||||||||||||||
3/11/2021 | — | — | — | — | 5,193 | 412,013 | ||||||||||||||||||||||||||||||||||||||
3/11/2021 | — | — | — | — | 5,193 | 412,013 |
| | | | Option Awards | | | Stock Awards | | ||||||||||||||||||
| Name | | | Number of shares acquired on exercise (#) | | | Value realized on exercise ($) | | | Number of shares acquired on vesting (#) | | | Value realized on vesting ($) | | ||||||||||||
| William Crager | | | | | 13,594 | | | | | | 851,936 | | | | | | 48,236 | | | | | | 3,320,831 | | |
| Peter D’Arrigo | | | | | 10,195 | | | | | | 546,197 | | | | | | 21,076 | | | | | | 1,468,819 | | |
| Stuart DePina | | | | | 1,565 | | | | | | 32,759 | | | | | | 69,057 | | | | | | 4,460,588 | | |
| Shelly O’Brien | | | | | — | | | | | | — | | | | | | 5,105 | | | | | | 338,129 | | |
Option Awards | Stock Awards | |||||||||||||||||||||||||
Name | Number of shares acquired on exercise (#) | Value realized on exercise ($) | Number of shares acquired on vesting (#) | Value realized on vesting ($) | ||||||||||||||||||||||
William Crager | — | — | 40,453 | 2,862,968 | ||||||||||||||||||||||
Peter D’Arrigo | 10,000 | 506,600 | 16,844 | 1,181,935 | ||||||||||||||||||||||
Stuart DePina | — | — | 37,986 | 2,780,821 | ||||||||||||||||||||||
Shelly O’Brien | — | — | 5,138 | 360,408 |
Name | Executive Contributions in Last FY ($) | Registrant Contributions in Last FY ($) | Aggregate Earnings in Last FY ($) | Aggregate Withdrawals/ Distributions ($) | Aggregate Balance at Last FYE ($) | |||||||||||||||||||||||||||
Stuart DePina | — | — | 31,093 | — | 134,100 |
| Name | | | Executive Contributions in Last FY ($)(1) | | | Registrant Contributions in Last FY ($) | | | Aggregate Earnings in Last FY ($)(2) | | | Aggregate Withdrawals/ Distributions ($) | | | Aggregate Balance at Last FYE ($) | | |||||||||||||||
| Peter D’Arrigo | | | | | 44,625 | | | | | | — | | | | | | -1,528 | | | | | | — | | | | | | 43,098(3) | | |
| Stuart DePina | | | | | — | | | | | | | | | | | | -11,293 | | | | | | | | | | | | 122,807(4) | | |
| ||||||||
Fund Name | | | Return On Investment (%) | | ||||
| ClearBridge Variable Small Cap Growth Fund (Class 1) | | | | -28.85 | | | |
| LVIP Delaware | | | | -25.30 | | | |
| Delaware VIP Small Cap Value Series (Standard Class) | | | | -12.90 | | | |
| LVIP Delaware Value | | | | -3.27 | | | |
| Fidelity VIP Freedom 2020 | | | | -15.38 | | | |
| Fidelity VIP Freedom 2030 | | | | -16.94 | | | |
| Fidelity VIP Freedom 2040 | | | | -18.30 | | | |
| Fidelity VIP Freedom 2050 | | | | -18.35 | | | |
| Fidelity VIP Investment Grade Bond Portfolio (Service Class) | | | | -13.30 | | | |
| Fidelity VIP Overseas Portfolio (Service Class) | | | | -24.58 | | | |
| LVIP Government Money Market Fund (Standard Class) | | | | 1.30 | | | |
| LVIP Delaware Mid Cap Fund (Standard Class) | | | | -8.87 | | | |
| LVIP J.P. Morgan High Yield Fund (Standard Class) | | | | -10.23 | | | |
| LVIP S&P 500 Index Fund (Standard Class) | | | | -18.31 | | | |
| PIMCO VIT Commodity Real Return Strategy Portfolio (Administrative Class) | | | | 8.61 | | | |
| PIMCO VIT Total Return (Administrative Class) | | | | -14.30 | | |
| Name | | | Severance Pay ($) | | | Pro-Rata Bonus ($) | | | Health Care Continuation ($) | | | Unvested RSUs ($) | | | Unvested PSUs ($) | | | Total ($) | | ||||||||||||||||||
| William Crager | | | | | — | | | | | | 720,000 | | | | | | — | | | | | | 3,145,713 | | | | | | 3,759,686 | | | | | | 7,625,399 | | |
| Peter D’Arrigo | | | | | — | | | | | | 495,000 | | | | | | — | | | | | | 1,153,852 | | | | | | 1,402,680 | | | | | | 3,051,532 | | |
| Shelly O’Brien | | | | | — | | | | | | 264,000 | | | | | | — | | | | | | 442,821 | | | | | | 561,845 | | | | | | 1,268,666 | | |
Name | Severance Pay ($) | Pro-Rata Bonus ($) | Health Care Continuation ($) | Unvested RSUs ($) | Unvested PSUs ($) | Total ($) | ||||||||||||||||||||||||||||||||
William Crager | — | 580,000 | — | 3,760,240 | 3,475,352 | 7,815,592 | ||||||||||||||||||||||||||||||||
Peter D’Arrigo | — | 380,000 | — | 1,410,189 | 1,505,498 | 3,295,687 | ||||||||||||||||||||||||||||||||
Stuart DePina | — | 501,995 | — | 2,595,053 | 3,136,758 | 6,233,806 | ||||||||||||||||||||||||||||||||
Shelly O’Brien | — | 190,000 | — | 196,843 | 735,930 | 1,122,773 |
| Name | | | Severance Pay ($) | | | Pro-Rata Bonus ($) | | | Health Care Continuation ($) | | | Unvested RSUs ($) | | | Unvested PSUs ($) | | | Total ($) | | ||||||||||||||||||
| William Crager | | | | | — | | | | | | — | | | | | | — | | | | | | 2,267,784 | | | | | | 2,267,784 | | | | | | 4,535,568 | | |
| Peter D’Arrigo | | | | | — | | | | | | — | | | | | | — | | | | | | 824,621 | | | | | | 824,621 | | | | | | 1,649,242 | | |
| Shelly O’Brien | | | | | — | | | | | | — | | | | | | — | | | | | | 309,240 | | | | | | 309,240 | | | | | | 618,480 | | |
| Name | | | Severance Pay ($) | | | Pro-Rata Bonus ($) | | | Health Care Continuation ($) | | | Unvested RSUs ($) | | | Unvested PSUs ($) | | | Total ($) | | ||||||||||||||||||
| William Crager | | | | | 2,740,000 | | | | | | 720,000 | | | | | | 28,280 | | | | | | — | | | | | | 3,759,686 | | | | | | 7,247,966 | | |
| Peter D’Arrigo | | | | | 1,890,000 | | | | | | 495,000 | | | | | | 33,162 | | | | | | — | | | | | | 1,402,680 | | | | | | 3,820,842 | | |
| Shelly O’Brien | | | | | 1,278,000 | | | | | | 264,000 | | | | | | 28,280 | | | | | | — | | | | | | 561,845 | | | | | | 2,132,125 | | |
Name | Severance Pay ($) | Pro-Rata Bonus ($) | Health Care Continuation ($) | Unvested RSUs ($) | Unvested PSUs ($) | Total ($) | |||||||||||||||||||||||||||||||||||
William Crager | 2,360,000 | 580,000 | 27,662 | — | 3,475,352 | 6,443,014 | |||||||||||||||||||||||||||||||||||
Peter D’Arrigo | 1,570,030 | 380,000 | 29,538 | — | 1,505,498 | 3,485,066 | |||||||||||||||||||||||||||||||||||
Stuart DePina | 2,004,021 | 501,995 | 29,538 | — | 3,136,758 | 5,672,312 | |||||||||||||||||||||||||||||||||||
Shelly O’Brien | 1,109,988 | 190,000 | 27,662 | — | 735,930 | 2,063,580 |
| Name | | | Severance Pay ($) | | | Pro-Rata Bonus ($) | | | Health Care Continuation ($) | | | Unvested RSUs ($) | | | Unvested PSUs ($) | | | Total ($) | | ||||||||||||||||||
| William Crager | | | | | 2,740,000 | | | | | | 720,000 | | | | | | 28,280 | | | | | | 3,309,218 | | | | | | 6,336,343 | | | | | | 13,133,841 | | |
| Peter D’Arrigo | | | | | 1,890,000 | | | | | | 495,000 | | | | | | 33,162 | | | | | | 1,215,182 | | | | | | 2,350,338 | | | | | | 5,983,682 | | |
| Shelly O’Brien | | | | | 1,278,000 | | | | | | 264,000 | | | | | | 28,280 | | | | | | 467,748 | | | | | | 928,030 | | | | | | 2,966,058 | | |
Name | Severance Pay ($) | Pro-Rata Bonus ($) | Health Care Continuation ($) | Unvested RSUs ($) | Unvested PSUs ($) | Total ($) | |||||||||||||||||||||||||||||||||||
William Crager | 2,360,000 | 580,000 | 27,662 | 3,475,352 | 6,499,691 | 12,942,705 | |||||||||||||||||||||||||||||||||||
Peter D’Arrigo | 1,570,030 | 380,000 | 29,538 | 1,467,631 | 2,651,146 | 6,098,345 | |||||||||||||||||||||||||||||||||||
Stuart DePina | 2,004,021 | 501,995 | 29,538 | 3,201,766 | 4,303,481 | 10,040,801 | |||||||||||||||||||||||||||||||||||
Shelly O’Brien | 1,109,988 | 190,000 | 27,662 | 329,102 | 1,207,713 | 2,864,465 |
| Plan Category | | | Number of securities to be issued upon exercise of outstanding options, warrants and rights (a)(1) | | | Weighted-average exercise price of outstanding options, warrants and rights (b)(2) | | | Number of securities remaining available for future issuance under equity compensation plans (c), excluding securities referenced in column (a)(3) | | |||||||||
| Equity compensation plans approved by security holders | | | | | 2,156,468 | | | | | $ | 40.07 | | | | | | 2,559,804 | | |
| Equity compensation plans not approved by security holders(4) | | | | | 62,092 | | | | | $ | — | | | | | | 19,217 | | |
| Total | | | | | 2,218,560 | | | | | $ | 40.07 | | | | | | 2,579,021 | | |
Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights (a) (1) | Weighted-average exercise price of outstanding options, warrants and rights (b) (2) | Number of securities remaining available for future issuance under equity compensation plans (c), excluding securities referenced in column (a) (3) | |||||||||||||||||
Equity compensation plans approved by security holders | 2,067,600 | $ | 38.61 | 3,686,105 | ||||||||||||||||
Equity compensation plans not approved by security holders (4) | 164,249 | $ | — | 26,208 | ||||||||||||||||
Total | 2,231,849 | $ | 38.61 | 3,712,313 | ||||||||||||||||
| Year | | | Summary Compensation Table Total for PEO(1)(2) $ | | | Compensation Actually Paid to PEO(1)(3) $ | | | Average Summary Compensation Table Total for Non-PEO NEOs(1)(2) $ | | | Average Compensation Actually Paid to Non-PEO NEOs(1)(3) $ | | | Value of Initial Fixed $100 Investment Based On: | | | GAAP Net Income (Loss) (thousands)(5) $ | | | Adjusted Revenue (thousands)(6) $ | | |||||||||||||||||||||||||||
| Total Shareholder Return(4) $ | | | Peer Group Total Shareholder Return(4) $ | | |||||||||||||||||||||||||||||||||||||||||||||
| 2022 | | | | | 6,921,191 | | | | | | 3,353,087 | | | | | | 3,207,439 | | | | | | 1,736,736 | | | | | | 88.61 | | | | | | 116.13 | | | | | | (80,939) | | | | | | 1,240,000 | | |
| 2021 | | | | | 6,172,629 | | | | | | 6,883,899 | | | | | | 2,545,188 | | | | | | 2,943,664 | | | | | | 113.95 | | | | | | 181.00 | | | | | | 13,296 | | | | | | 1,186,801 | | |
| 2020 | | | | | 6,253,999 | | | | | | 6,617,417 | | | | | | 2,221,741 | | | | | | 2,545,525 | | | | | | 118.18 | | | | | | 144.01 | | | | | | (3,110) | | | | | | 998,922 | | |
| Year | | | PEO | | | Non-PEO NEOs | |
| 2022 | | | William Crager | | | Peter D’Arrigo, Shelly O’Brien and Stuart DePina | |
| 2021 | | | William Crager | | | Peter D’Arrigo, Shelly O’Brien and Stuart DePina | |
| 2020 | | | William Crager | | | Peter D’Arrigo, Shelly O’Brien, Stuart DePina and Joshua Mayer | |
| | | | PEO | | | Non-PEO NEO Average | | ||||||||||||||||||||||||||||||
| | | | 2022 $ | | | 2021 $ | | | 2020 $ | | | 2022 $ | | | 2021 $ | | | 2020 $ | | ||||||||||||||||||
| Summary Compensation Table Total | | | | | 6,921,191 | | | | | | 6,172,629 | | | | | | 6,253,999 | | | | | | 3,207,439 | | | | | | 2,545,188 | | | | | | 2,221,741 | | |
| Less: Reported Fair Value of Equity Awards(a) | | | | | 5,751,055 | | | | | | 4,769,575 | | | | | | 4,988,552 | | | | | | 1,769,780 | | | | | | 1,610,216 | | | | | | 1,397,136 | | |
| Add: Year-End Fair Value of Equity Awards Granted in the Year(b) | | | | | 4,687,045 | | | | | | 5,897,808 | | | | | | 4,728,833 | | | | | | 1,442,351 | | | | | | 1,969,550 | | | | | | 1,345,739 | | |
| Add: Change in Fair Value of Equity Awards Granted in Prior Years that Vested in the Year(b) | | | | | (638,353) | | | | | | (465,911) | | | | | | 92,881 | | | | | | (573,204) | | | | | | (203,865) | | | | | | 61,005 | | |
| Add: Change in Fair Value of Outstanding and Unvested Equity Awards(b) | | | | | (1,865,741) | | | | | | 48,948 | | | | | | 530,256 | | | | | | (570,070) | | | | | | 243,007 | | | | | | 314,176 | | |
| Compensation Actually Paid | | | | | 3,353,087 | | | | | | 6,883,899 | | | | | | 6,617,417 | | | | | | 1,736,736 | | | | | | 2,943,664 | | | | | | 2,545,525 | | |
| 2022 Most Important Measures (Unranked) | | |||
| Adjusted Revenue | | | Relative TSR | |
| Adjusted EBITDA | | | Adjusted EPS | |
| | | | THE BOARD OF DIRECTORS RECOMMENDS A VOTE “FOR” THE APPROVAL OF EXECUTIVE COMPENSATION. | | |
| | THE BOARD OF DIRECTORS RECOMMENDS A VOTE FOR A FREQUENCY OF “ONE YEAR” FOR FUTURE NON-BINDING SHAREHOLDER VOTES ON COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS. | | |
| | Note: Shareholders are not voting to approve or disapprove the recommendation of the Board of Directors regarding Proposal No. 2. | | |
| | | | THE BOARD OF DIRECTORS AND THE AUDIT COMMITTEE RECOMMEND A VOTE “FOR” THE RATIFICATION OF THE APPOINTMENT OF KPMG LLP AS ENVESTNET’S INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM. | | |
| | | | 2021 | | | 2022 | | ||||||
| Audit fees(1) | | | | $ | 4,254,000 | | | | | $ | 4,300,000 | | |
| Audit-related fees(2) | | | | $ | 96,500 | | | | | $ | 585,000 | | |
| Tax fees | | | | | — | | | | | | — | | |
| All other fees | | | | | — | | | | | | — | | |
| Total | | | | $ | 4,350,500 | | | | | $ | 4,885,000 | | |
2020 | 2021 | |||||||||||||
Audit fees (1) | $ | 4,627,300 | $ | 4,254,000 | ||||||||||
Audit-related fees (2) | 667,100 | 96,500 | ||||||||||||
Tax fees | — | — | ||||||||||||
All other fees | — | — | ||||||||||||
Total | $ | 5,294,400 | $ | 4,350,500 |
| | | | | | | Board Recommendation | | | Page Reference | |
| Proposal 1: | | | Election of three (3) Class II directors to hold office until the 2026 annual meeting and until their successor is duly elected and qualified or until their earlier resignation, removal, incapacity or death | | | FOR each of the director nominees set forth in this Proxy Statement | | | | |
| Proposal 2: | | | Approval, on an advisory basis, of 2022 executive compensation; | | | FOR | | | | |
| Proposal 3: | | | Approval, on an advisory basis, of the frequency of future shareholder advisory votes on executive compensation; | | | FOR every “ONE YEAR” | | | | |
| Proposal 4: | | | Ratification of the appointment of KPMG LLP as Envestnet’s independent registered public accounting firm for the fiscal year ending December 31, 2023; and | | | FOR | | | | |
| | | | such other business, if any, as may lawfully be brought before the meeting. | | | | | | | |
| | | | | |
| Proposal 1: Election of Directors | | | Directors are elected by a plurality of votes cast, which means that the nominees receiving the most affirmative votes will be elected, up to the number of directors to be chosen at the meeting. Shares present at the Annual Meeting that are not voted for a particular nominee, broker non-votes and shares present by proxy where the shareholder “withholds” authority to vote with respect to one or more nominees are not considered votes cast for purposes of Proposal No. 1, and therefore, will have no effect on the election of such nominees. However, if the majority of the votes cast for a director are withheld, then, notwithstanding the valid election of such director, our by-laws provide that such director will voluntarily tender his or her resignation for consideration by our Board. Our Board will determine whether to accept the resignation of such director. The Board recommends that you vote “FOR” each of the director nominees set forth in this Proxy Statement. | |
| Proposal 2: Advisory Vote to Approve Executive Compensation | | | The advisory vote regarding the compensation of our executive officers will be approved by the affirmative vote of the majority of the shares of common stock present in person (including virtually) or represented by proxy and entitled to vote. For purposes of Proposal 2, abstentions will have the effect of a vote “against” the proposal and broker non-votes will have no effect on the results of the advisory vote. The Board recommends that you vote “FOR” the approval, on a non-binding, advisory basis, of the compensation paid to our executive officers. | |
| Proposal 3: Advisory Vote to Approve Frequency of Future Shareholder Advisory Votes on Executive Compensation | | | The advisory vote regarding the frequency of future shareholder advisory votes on executive compensation will be approved by the affirmative vote of the majority of shares present in person (including virtually) or represented by proxy and entitled to vote. If none of the frequency options receives the affirmative vote of the holders of a majority of the voting power of the shares of common stock present in person or represented by proxy and entitled to vote, then the option receiving the greatest number of votes will be considered the frequency recommended by shareholders. For purposes of Proposal No. 3, abstentions will have the effect of a vote “against” the proposal and broker non-votes will have no effect on the results of the advisory vote. The Board recommends that you vote “FOR” every “ONE YEAR” on a non-binding, advisory basis, with respect to how frequently non-binding shareholder votes to approve the compensation paid to our named executive officers should occur. | |
| Proposal 4: Ratification of the appointment of KPMG LLP as Envestnet’s independent registered public accounting firm for the fiscal year ending December 31, 2023 | | | The appointment of our independent registered public accounting firm will be ratified by the affirmative vote of the majority of the shares present in person (including virtually) or represented by proxy entitled to vote. For purposes of Proposal No. 4, abstentions will have the effect of a vote “against” the proposal. Because the ratification of the independent registered public accounting firm is considered a routine matter, your bank, broker, trustee or other nominee, as the case may be, may vote your shares without your instruction with respect to the ratification of the independent registered public accounting firm unless you instruct your them otherwise. If a bank, broker, trustee or other nominee does not exercise this authority, such broker non-votes will have no effect on the results of this vote. The Board recommends that you vote “FOR” ratification of the appointment of KPMG LLP as Envestnet’s independent registered public accounting firm for the fiscal year ending December 31, 2023. | |
| Name | | | Shares Held | | | Options Exercisable within 60 Days(1) | | | Unvested RSUs Vesting within 60 Days | | | Total Beneficial Ownership | | | Beneficial Ownership Percentages | | |||||||||||||||
| William Crager(2)(3) | | | | | 335,218 | | | | | | 37,085 | | | | | | 5,909 | | | | | | 378,212 | | | | | | * | | |
| Peter D’Arrigo | | | | | 120,974 | | | | | | 26,935 | | | | | | 2,180 | | | | | | 150,089 | | | | | | * | | |
| Shelly O’Brien | | | | | 23,709 | | | | | | 8,931 | | | | | | 850 | | | | | | 33,490 | | | | | | * | | |
| Stuart DePina(4) | | | | | 56,967 | | | | | | 1,565 | | | | | | 1,529 | | | | | | 60,061 | | | | | | * | | |
| Luis Aguilar | | | | | 19,336 | | | | | | 1,745 | | | | | | — | | | | | | 21,081 | | | | | | * | | |
| Ross Chapin | | | | | 62,748 | | | | | | 15,238 | | | | | | — | | | | | | 77,986 | | | | | | * | | |
| Gayle Crowell(5) | | | | | 16,940 | | | | | | 1,745 | | | | | | — | | | | | | 18,685 | | | | | | * | | |
| James Fox | | | | | 26,811 | | | | | | 8,082 | | | | | | — | | | | | | 34,893 | | | | | | * | | |
| Wendy Lane | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| Valerie Mosley | | | | | 11,870 | | | | | | — | | | | | | — | | | | | | 11,870 | | | | | | * | | |
| Gregory Smith | | | | | 26,929 | | | | | | 8,038 | | | | | | — | | | | | | 34,967 | | | | | | * | | |
| Lauren Taylor Wolfe(6) | | | | | 4,151,033 | | | | | | — | | | | | | — | | | | | | 4,151,033 | | | | | | 7.6% | | |
| Barbara Turner | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| All Directors and Executive Officers as a Group | | | | | 4,795,568 | | | | | | 107,799 | | | | | | 8,939 | | | | | | 4,972,367 | | | | | | 9.2% | | |
| Name and Address of Beneficial Owner | | | Number of Shares Beneficially Owned | | | Percent of Class* | | ||||||
| BlackRock Inc.(1) 55 East 52nd Street New York, NY 10055 | | | | | 7,706,352 | | | | | | 14.2% | | |
| The Vanguard Group(2) 100 Vanguard Blvd. Malvern, PA 19355 | | | | | 5,528,983 | | | | | | 10.2% | | |
| Impactive Capital LP(3) 152 West 57th Street, 17th Floor New York, NY 10019 | | | | | 4,151,033 | | | | | | 7.6% | | |
| JPMorgan Chase & Co.(4) 383 Madison Avenue New York, NY 10179 | | | | | 3,116,257 | | | | | | 5.7% | | |
| | | | Years ended December 31 | | |||||||||||||||
| (in millions) | | | 2022 | | | 2021 | | | 2020 | | |||||||||
| Total revenues | | | | $ | 1,239.8 | | | | | $ | 1,186.5 | | | | | $ | 998.2 | | |
| Deferred revenue fair value adjustment | | | | | 0.2 | | | | | | 0.3 | | | | | | 0.7 | | |
| Adjusted revenues | | | | $ | 1,240.0 | | | | | $ | 1,186.8 | | | | | $ | 998.9 | | |
Years ended December 31 | |||||||||||||||||||||||||||||||||||
(in millions) | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | |||||||||||||||||||||||||||||
Total revenues | $ | 578.16 | $ | 683.68 | $ | 812.36 | $ | 900.13 | $ | 998.23 | $ | 1,186.52 | |||||||||||||||||||||||
Deferred revenue fair value adjustment | 1.27 | 0.13 | 0.12 | 9.27 | 0.69 | 0.28 | |||||||||||||||||||||||||||||
Adjusted Revenues | $ | 579.43 | $ | 683.81 | $ | 812.48 | $ | 909.40 | $ | 998.92 | $ | 1,186.80 |
| | | | Years ended December 31 | | |||||||||||||||
| (in millions) | | | 2022 | | | 2021 | | | 2020 | | |||||||||
| Net income (loss) | | | | $ | (85.5) | | | | | $ | 12.7 | | | | | $ | (2.6) | | |
| Add (deduct): | | | | | | | | | | | | | | | | | | | |
| Deferred revenue fair value adjustment | | | | | 0.2 | | | | | | 0.3 | | | | | | 0.7 | | |
| Interest income | | | | | (4.2) | | | | | | (0.8) | | | | | | (1.1) | | |
| Interest expense | | | | | 16.8 | | | | | | 16.9 | | | | | | 31.5 | | |
| Accretion on contingent consideration and purchase liability | | | | | — | | | | | | 0.7 | | | | | | 1.7 | | |
| Income tax provision (benefit) | | | | | 7.1 | | | | | | 7.7 | | | | | | (5.4) | | |
| Depreciation and amortization | | | | | 130.5 | | | | | | 117.8 | | | | | | 113.7 | | |
| Non-cash compensation expense | | | | | 80.3 | | | | | | 68.0 | | | | | | 57.1 | | |
| Restructuring charges and transaction costs | | | | | 35.1 | | | | | | 18.5 | | | | | | 19.4 | | |
| Severance | | | | | 30.1 | | | | | | 11.3 | | | | | | 25.1 | | |
| Fair market value adjustment to contingent consideration liability | | | | | — | | | | | | (1.1) | | | | | | (3.1) | | |
| Fair market value adjustment on investment in private company | | | | | (0.4) | | | | | | (0.8) | | | | | | — | | |
| Litigation and regulatory related expenses | | | | | 6.1 | | | | | | 7.6 | | | | | | 7.8 | | |
| Foreign currency | | | | | 1.4 | | | | | | (0.0) | | | | | | 0.1 | | |
| Gain on settlement of liability | | | | | — | | | | | | (1.2) | | | | | | — | | |
| Gain on insurance reimbursement | | | | | — | | | | | | (1.0) | | | | | | — | | |
| Non-income tax expense adjustment | | | | | 0.8 | | | | | | (1.3) | | | | | | 0.4 | | |
| Gain on acquisition of equity method investment | | | | | — | | | | | | — | | | | | | (4.2) | | |
| Gain on sale of interest in private company | | | | | — | | | | | | — | | | | | | (1.6) | | |
| Dilution gain on equity method investee share issuance | | | | | (9.5) | | | | | | — | | | | | | — | | |
| Loss allocations from equity method investments | | | | | 8.9 | | | | | | 7.1 | | | | | | 5.4 | | |
| (Income) loss attributable to non-controlling interest | | | | | 2.3 | | | | | | (0.7) | | | | | | (1.8) | | |
| Adjusted EBITDA | | | | $ | 220.1 | | | | | $ | 261.7 | | | | | $ | 242.9 | | |
Years ended December 31 | |||||||||||||||||||||||||||||||||||
(in millions) | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | |||||||||||||||||||||||||||||
Net income (loss) | $ | (55.57) | $ | (3.28) | $ | 4.01 | $ | (17.20) | $ | (2.64) | $ | 12.69 | |||||||||||||||||||||||
Deferred revenue fair value adjustment | 1.27 | 0.13 | 0.12 | 9.27 | 0.69 | 0.28 | |||||||||||||||||||||||||||||
Interest income | (0.04) | (0.20) | (2.36) | (3.35) | (1.11) | (0.83) | |||||||||||||||||||||||||||||
Interest expense | 16.60 | 16.35 | 25.20 | 32.52 | 31.50 | 16.93 | |||||||||||||||||||||||||||||
Accretion on contingent consideration and purchase liability | 0.15 | 0.51 | 0.22 | 1.77 | 1.69 | 0.73 | |||||||||||||||||||||||||||||
Income tax provision (benefit) | 15.08 | 1.59 | (13.17) | (30.89) | (5.40) | 7.67 | |||||||||||||||||||||||||||||
Depreciation and amortization | 64.00 | 62.82 | 77.63 | 101.27 | 113.66 | 117.77 | |||||||||||||||||||||||||||||
Non-cash compensation expense | 33.28 | 31.33 | 40.25 | 60.44 | 57.11 | 68.02 | |||||||||||||||||||||||||||||
Restructuring charges and transaction costs | 5.78 | 13.67 | 15.58 | 26.56 | 19.38 | 18.49 | |||||||||||||||||||||||||||||
Severance | 4.34 | 2.32 | 8.32 | 15.37 | 25.11 | 11.35 | |||||||||||||||||||||||||||||
Fair market value adjustment on contingent consideration liability | 1.59 | — | — | (8.13) | (3.11) | (1.07) | |||||||||||||||||||||||||||||
Fair market value adjustment on investment in private company | — | — | — | — | — | (0.76) | |||||||||||||||||||||||||||||
Litigation and regulatory related expenses | 5.59 | 1.03 | — | 2.88 | 7.83 | 7.59 | |||||||||||||||||||||||||||||
Foreign currency | (0.72) | 0.49 | (0.59) | (0.07) | 0.12 | (0.01) | |||||||||||||||||||||||||||||
Gain on settlement of liability | — | — | — | — | — | (1.21) | |||||||||||||||||||||||||||||
Gain on insurance reimbursement | — | — | — | — | — | (0.97) | |||||||||||||||||||||||||||||
Non-income tax expense adjustment | 6.23 | 0.35 | (0.59) | 0.37 | 0.42 | (1.35) | |||||||||||||||||||||||||||||
Gain on acquisition of equity method investment | — | — | — | — | (4.23) | — | |||||||||||||||||||||||||||||
Gain on sale of interest in private company | — | — | — | — | (1.65) | — | |||||||||||||||||||||||||||||
Loss allocations from equity method investments | 1.42 | 1.47 | 1.15 | 2.36 | 5.40 | 7.09 | |||||||||||||||||||||||||||||
Impairment of equity method investment | 0.73 | — | — | — | — | — | |||||||||||||||||||||||||||||
Other | (1.38) | — | — | — | — | — | |||||||||||||||||||||||||||||
(Income) loss attributable to non-controlling interest | 1.08 | 0.32 | 1.79 | 0.11 | (1.83) | (0.70) | |||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 99.44 | $ | 128.89 | $ | 157.55 | $ | 193.29 | $ | 242.94 | $ | 261.73 |
| | | | Years ended December 31 | | |||||||||||||||
| (in millions, except share and per share amounts) | | | 2022 | | | 2021 | | | 2020 | | |||||||||
| Net income (loss) | | | | $ | (85.5) | | | | | $ | 12.7 | | | | | $ | (2.6) | | |
| Income tax provision (benefit) | | | | | 7.1 | | | | | | 7.7 | | | | | | (5.4) | | |
| Income (loss) before income tax provision (benefit)(1) | | | | | (78.4) | | | | | | 20.4 | | | | | | (8.0) | | |
| Add (deduct): | | | | | | | | | | | | | | | | | | | |
| Deferred revenue fair value adjustment | | | | | 0.2 | | | | | | 0.3 | | | | | | 0.7 | | |
| Accretion on contingent consideration and purchase liability | | | | | — | | | | | | 0.7 | | | | | | 1.7 | | |
| Non-cash interest expense | | | | | 4.7 | | | | | | 5.8 | | | | | | 17.5 | | |
| Cash interest - Convertible Notes(2) | | | | | 10.9 | | | | | | 9.9 | | | | | | — | | |
| Non-cash compensation expense | | | | | 80.3 | | | | | | 68.0 | | | | | | 57.1 | | |
| Restructuring charges and transaction costs | | | | | 35.1 | | | | | | 18.5 | | | | | | 19.4 | | |
| Severance | | | | | 30.1 | | | | | | 11.3 | | | | | | 25.1 | | |
| Amortization of acquired intangibles | | | | | 71.9 | | | | | | 68.6 | | | | | | 73.6 | | |
| Fair market value adjustment to contingent consideration liability | | | | | — | | | | | | (1.1) | | | | | | (3.1) | | |
| Fair market value adjustment to investment in private company | | | | | (0.4) | | | | | | (0.8) | | | | | | — | | |
| Litigation and regulatory related expenses | | | | | 6.1 | | | | | | 7.6 | | | | | | 7.8 | | |
| Foreign currency | | | | | 1.4 | | | | | | (0.0) | | | | | | 0.1 | | |
| Gain on settlement of liability | | | | | — | | | | | | (1.2) | | | | | | — | | |
| Gain on insurance reimbursement | | | | | — | | | | | | (1.0) | | | | | | — | | |
| Non-income tax expense adjustment | | | | | 0.8 | | | | | | (1.3) | | | | | | 0.4 | | |
| Gain on acquisition of equity method investment | | | | | — | | | | | | — | | | | | | (4.2) | | |
| Gain on sale of interest in private company | | | | | — | | | | | | — | | | | | | (1.6) | | |
| Dilution gain on equity method investee share issuance | | | | | (9.5) | | | | | | — | | | | | | — | | |
| Loss allocations from equity method investments | | | | | 8.9 | | | | | | 7.1 | | | | | | 5.4 | | |
| (Income) loss attributable to non-controlling interest | | | | | 2.3 | | | | | | (0.7) | | | | | | (1.8) | | |
| Adjusted net income before income tax effect | | | | | 164.4 | | | | | | 212.1 | | | | | | 189.9 | | |
| Income tax effect(3) | | | | | (41.9) | | | | | | (54.1) | | | | | | (48.4) | | |
| Adjusted net income | | | | $ | 122.5 | | | | | $ | 158.0 | | | | | $ | 141.5 | | |
| Diluted number of weighted-average shares outstanding | | | | | 65,793,448 | | | | | | 65,282,645 | | | | | | 55,070,715 | | |
| Adjusted EPS - diluted | | | | $ | 1.86 | | | | | $ | 2.42 | | | | | $ | 2.57 | | |
Years ended December 31 | |||||||||||||||||||||||||||||||||||
(in millions except per share amounts) | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | |||||||||||||||||||||||||||||
Net income (loss) | $ | (55.57) | $ | (3.28) | $ | 4.01 | $ | (17.20) | $ | (2.64) | $ | 12.69 | |||||||||||||||||||||||
Income tax provision (benefit) | 15.08 | 1.59 | (13.17) | (30.89) | (5.40) | 7.67 | |||||||||||||||||||||||||||||
Income (loss) before income tax provision | (40.49) | (1.69) | (9.16) | (48.09) | (8.04) | 20.36 | |||||||||||||||||||||||||||||
Deferred revenue fair value adjustment | 1.27 | 0.13 | 0.12 | 9.27 | 0.69 | 0.28 | |||||||||||||||||||||||||||||
Accretion on contingent consideration and purchase liability | 0.15 | 0.51 | 0.22 | 1.77 | 1.69 | 0.73 | |||||||||||||||||||||||||||||
Non-cash interest expense | 8.24 | 8.99 | 13.91 | 18.74 | 17.48 | 5.75 | |||||||||||||||||||||||||||||
Cash interest - convertible notes | — | — | — | — | — | 9.92 | |||||||||||||||||||||||||||||
Non-cash compensation expense | 33.28 | 31.33 | 40.25 | 60.44 | 57.11 | 68.02 | |||||||||||||||||||||||||||||
Restructuring charges and transaction costs | 5.78 | 13.67 | 15.58 | 26.56 | 19.38 | 18.49 | |||||||||||||||||||||||||||||
Severance | 4.34 | 2.32 | 8.32 | 15.37 | 25.11 | 11.35 | |||||||||||||||||||||||||||||
Amortization of acquired intangibles and fair value adjustment to property and equipment, net | 45.52 | 42.13 | 53.86 | 70.68 | 73.56 | 68.59 | |||||||||||||||||||||||||||||
Fair market value adjustment on contingent consideration liability | 1.59 | — | — | (8.13) | (3.11) | (1.07) | |||||||||||||||||||||||||||||
Fair market value adjustment to investment in private company | — | — | — | — | — | (0.76) | |||||||||||||||||||||||||||||
Litigation and regulatory related expenses | 5.59 | 1.03 | — | 2.88 | 7.83 | 7.59 | |||||||||||||||||||||||||||||
Foreign currency | (0.72) | 0.49 | (0.59) | (0.07) | 0.12 | (0.01) | |||||||||||||||||||||||||||||
Gain on settlement of liability | — | — | — | — | — | (1.21) | |||||||||||||||||||||||||||||
Gain on insurance reimbursement | — | — | — | — | — | (0.97) | |||||||||||||||||||||||||||||
Non-income tax expense adjustment | 6.23 | 0.35 | (0.59) | 0.37 | 0.42 | (1.35) | |||||||||||||||||||||||||||||
Gain on acquisition of equity method investment | — | — | — | — | (4.23) | — | |||||||||||||||||||||||||||||
Gain on sale of interest in private company | — | — | — | — | (1.65) | — | |||||||||||||||||||||||||||||
Loss allocations from equity method investments | 1.42 | 1.47 | 1.15 | 2.36 | 5.40 | 7.09 | |||||||||||||||||||||||||||||
Impairment of equity method investment | 0.73 | — | — | — | — | — | |||||||||||||||||||||||||||||
Other | (1.38) | — | — | — | — | — | |||||||||||||||||||||||||||||
(Income) loss attributable to non-controlling interest | 1.08 | 0.32 | 1.79 | 0.11 | (1.83) | (0.70) | |||||||||||||||||||||||||||||
Adjusted Net Income before income tax effect | 72.63 | 101.05 | 124.84 | 152.26 | 189.93 | 212.11 | |||||||||||||||||||||||||||||
Income tax effect | (29.05) | (40.42) | (33.71) | (38.83) | (48.43) | (54.09) | |||||||||||||||||||||||||||||
Adjusted Net Income | $ | 43.58 | $ | 60.63 | $ | 91.14 | $ | 113.44 | $ | 141.50 | $ | 158.02 | |||||||||||||||||||||||
Diluted number of weighted-average shares outstanding | 44.58 | 46.15 | 47.38 | 52.68 | 55.07 | 65.28 | |||||||||||||||||||||||||||||
Adjusted EPS | $ | 0.98 | $ | 1.31 | $ | 1.92 | $ | 2.15 | $ | 2.57 | $ | 2.42 |