¨ | Preliminary Proxy Statement | |||||||
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x | Definitive Proxy Statement | |||||||
¨ | Definitive Additional Materials | |||||||
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& | ||
page | page | |||||||||||||
Letter from our Chairman and CEO | Compensation Philosophy, Objectives, and Design | |||||||||||||
Notice of Annual Meeting of Stockholders | Compensation Setting Process | |||||||||||||
Introduction | Compensation Program Components | |||||||||||||
Our Board of Directors | Other Compensation Information | |||||||||||||
Proposal 1: Election of Four Class II Directors | Compensation Committee Report | |||||||||||||
Nominees | Executive Compensation Tables | |||||||||||||
Continuing Directors | Summary Compensation Table | |||||||||||||
Our Board of Directors | Grants of Plan-Based Awards | |||||||||||||
Membership and Key Attributes | Outstanding Awards at Fiscal Year-End | |||||||||||||
The Role and Responsibilities of our Board | Stock Option Exercises and Stock Vested | |||||||||||||
How our Board is Organized | Additional Tables | |||||||||||||
How our Directors are Selected | Compensation Committee Interlocks and Insider Participation | |||||||||||||
How our Directors are Evaluated | Equity Compensation Plan Information | |||||||||||||
Meeting Attendance | Our Stockholders | |||||||||||||
How our Directors are Paid | Beneficial Ownership of Common Stock | |||||||||||||
How You can Communicate with our Board | Stockholder Engagement | |||||||||||||
Our Company | Stockholder Proposals | |||||||||||||
Our Executive Officers | Audit Matters | |||||||||||||
Our Team, Culture, and Values | Proposal 3: Ratification of Appointment of Independent Registered Public Accounting Firm | |||||||||||||
Certain Relationships and Related Party Transactions | Audit Fees and Services | |||||||||||||
Corporate Governance Materials | Pre-Approval Policy | |||||||||||||
Executive Compensation | Audit Committee Report | |||||||||||||
Proposal 2: Advisory Vote to Approve Compensation for our Named Executive Officers | Additional Information | |||||||||||||
Compensation Discussion and Analysis | Questions and Answers | |||||||||||||
Named Executive Officers | Annex A: GAAP to Non-GAAP Reconciliation Tables | |||||||||||||
Executive Summary |
page | page | |||
Letter from our Chairman and CEO | Compensation setting process | |||
Notice of Annual Meeting of Stockholders | Compensation program components | |||
Introduction | Other compensation information | |||
Our board of directors | Compensation Committee report | |||
Proposal 1: Election of three class I directors | Executive compensation tables | |||
Nominees | Summary compensation table | |||
Continuing directors | Grants of plan-based awards | |||
Our board | Outstanding awards at fiscal year-end | |||
Membership and key attributes | Stock option exercises and stock vested | |||
The role and responsibilities of our board | Additional tables | |||
How our board is organized | Compensation committee interlocks and insider participation | |||
How our directors are selected | Equity compensation plan information | |||
How our directors are evaluated | Our stockholders | |||
Meeting attendance | Beneficial ownership of common stock | |||
How our directors are paid | Stockholder engagement | |||
How you can communicate with us | Stockholder proposals | |||
Our company | Audit matters | |||
Our executive officers | Proposal 4: Ratification of appointment of independent registered public accounting firm | |||
Certain relationships and related party transactions | Audit fees and services | |||
Corporate governance materials | Pre-approval policy | |||
Executive compensation | Audit Committee report | |||
Proposal 2: Advisory vote to approve compensation for our named executive officers | Additional information | |||
Proposal 3: Advisory vote on the frequency of the advisory vote on executive compensation | Questions and answers | |||
Compensation discussion and analysis | Annex A: GAAP to non-GAAP reconciliation tables | |||
Executive summary | ||||
Named executive officers | ||||
Compensation philosophy, objectives, and design |
Dear Fellow Stockholders, FY | Tarang Amin Chairman and CEO | |||||||
position. Our mission to make the best of beauty accessible to every eye, lip and face is more important than ever. Looking ahead, we believe we’re still in the early stages of realizing the full potential of our 1.Driving brand demand. 2.Major step-up in digital. 3.Delivering industry-leading innovation of prestige-quality products at 4.Driving productivity with our national retail partners. 5.Delivering cost savings to fuel brand investments. We commend the hard work of our Board of Directors and our team, who rose to the occasion to navigate We are pleased to invite you to attend our 2021 Annual Meeting of Stockholders. Your vote is important to us. Thank you for your ongoing support of, and continued interest in, | ||
e.l.f. Beauty. Sincerely, | ||
1 | 2021 Proxy Statement |
NOTICE OF ANNUAL MEETING OF STOCKHOLDERS |
when | where | record date | ||||||||||||
August | Virtual Meeting | July 6, |
items of business | voting recommendation | ||||||||||||||||
1. | “FOR” all of the nominees | ||||||||||||||||
2. | “FOR” | ||||||||||||||||
3. | |||||||||||||||||
“FOR” | |||||||||||||||||
4. | Transact other business that may properly come before the annual meeting. | ||||||||||||||||
YOUR VOTE IS VERY IMPORTANT! Make your vote count. | Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting of Stockholders to be | |||||||
The Notice of Annual Meeting of Stockholders, Proxy Statement, and Annual Report on Form 10-K for the year ended March 31, | ||||||||
Access the website indicated on the Notice of Internet Availability of Proxy Materials, proxy card, or voting instruction form. | Call the number on the Notice of Internet Availability of Proxy Materials, proxy card, or voting instruction form. | Sign, date, and return the proxy card or voting instruction form in the postage-paid envelope. *if you requested paper materials | Attend the |
By Order of the Board of Directors, | |||||
Scott Milsten | |||||
General Counsel and Corporate Secretary | |||||
Oakland, California | |||||
July 16, 2021 |
2 |
Keys Soulcare is a lifestyle beauty brand created with artist, producer, actress, and New York Times best-selling author Alicia Keys. With an inclusive point of |
3 | 2021 Proxy Statement |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
9 Directors | 220 Employees | ||||||||||||||||||||||
56% Women | 33% Diverse | 77% Women | 63% Millennial/Gen Z | 42% Diverse |
1 of 5 Public Companies with | >55% Women on Board of Directors | and | >20% Black Representation on Board of Directors |
* | Employment statistics represent our employees in the United States, United Kingdom, and Canada, where over 70% of our workforce is located. |
2021 Proxy Statement | 4 |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
89% independent | key qualification/experience | number of directors | key qualification/experience | number of directors | ||||||||||||||||||||||||||||
Consumer Products | lllllllll 7 out of 9 | Tech/Digital Media | lllllllll 6 out of 9 | |||||||||||||||||||||||||||||
lllllllll 4 out of 9 | Operations | lllllllll 5 out of 9 | ||||||||||||||||||||||||||||||
lllllllll 4 out of 9 | Public Company Boards | lllllllll 5 out of 9 | ||||||||||||||||||||||||||||||
Corporate Governance | lllllllll 9 out of 9 | Senior Leadership | lllllllll 9 out of 9 | |||||||||||||||||||||||||||||
Brand/Marketing | M&A/Transactions |
$318 million | 65% | $6.2 million | $61 million | ||||||||
FY 2021 net sales | FY 2021 gross margin | FY 2021 net income | FY 2021 Adjusted EBITDA (1) | ||||||||
12% | 80 basis points | $0.12 | while continuing to invest in marketing and digital | ||||||||
YoY net sales growth | YoY gross margin growth | earnings per share | |||||||||
e.l.f. Cosmetics was the only top five color cosmetics brand to grow sales and market share. | ||||||||||||||||||||||
market share growth | ||||||||||||||||||||||
(1) | See Annex A | |||||||
According to Nielsen xAOC 52 weeks ending March | ||||||||
According to the Piper Sandler |
5 |
Drive Brand Demand | |||||
•We continued to find innovative ways to engage and entertain our community, moving far beyond traditional beauty boundaries. In music, we were the first beauty brand to create a holiday album, launch on Triller, and have four songs make the U.S. and Global Billboard’s Triller Top 20 list. In gaming, we were the first major beauty brand to launch a branded channel on Twitch. •We announced unexpected brand-on-brand partnerships with like-minded disruptors, including Chipotle. Our limited-edition product collaboration generated four billion press impressions and sold out in record time across multiple online channels. | |||||
•We increased our rank in Piper Sandler’s semi-annual teens survey from fourth favorite cosmetics brand last year to second this year, and just eight votes shy of the number one spot, reflecting our growing appeal with Gen Z. •Our brand-building efforts continued to win awards, including being named one of Beauty’s Most Powerful Brands, Newsmaker of the Year, and one of the Top 10 Marketers of the year, among many others. | |||||
Major Step-Up in Digital | |||||
•Digital consumption remained strong throughout FY 2021, up triple-digits year-over-year, with strength across elfcosmetics.com, retailer.coms, and Amazon. •Digital channels expanded to 17% of our net sales in FY 2021, up from 9% a year ago. •On elfcosmetics.com, approximately 75% of our shoppers in FY 2021 were new consumers. •e.l.f. Cosmetics’ Beauty Squad loyalty program grew to over 2.4 million members, up 40% year-over-year. |
6 |
Provide First-to-Mass Prestige-Quality Products | |||||
•e.l.f. Cosmetics saw continued success in its core segments—brushes, primers, concealers, brows and sponges—which make up approximately half of our sales. e.l.f. Cosmetics has the number one or two position in all five core segments and continued to drive market share gains in each, according to Nielsen. •We continue to leverage our unique ability to create prestige-quality products at extraordinary prices. Two of our biggest product launches were Camo CC Cream and Lash it Loud mascara, which are helping to drive momentum in foundation and mascara (the two largest categories in color cosmetics). | |||||
•We fueled our momentum in the skincare category, which remains a major focus area across our brand portfolio. e.l.f. Cosmetics’ skincare consumption was up 22% in FY 2021 versus a category that was down 3%, according to Nielsen. | |||||
Drive National Retailer Productivity | |||||
•e.l.f. Cosmetics maintained its industry-leading productivity on a sales per foot basis at both Walmart and Target, our two largest customers. We also earned space expansion in FY 2021 with both Walmart and ULTA Beauty. •We achieved new milestones internationally, which made up approximately 11% of our net sales in FY 2021. e.l.f. Cosmetics now ranks number eight in mass cosmetics in the United Kingdom, up from number 12 last year, and was the only top 10 brand to post growth, according to Nielsen. | |||||
•We celebrated a significant milestone on our sustainability journey—eliminating an estimated 650,000 pounds of packing since the inception of “Project Unicorn”. | |||||
7 |
Deliver Cost Savings to Fuel Brand Investments | |||||
•We delivered 80 basis points of gross margin expansion in FY 2021 against tariff related pressure and growing foreign exchange headwinds. •We successfully transferred all W3LL PEOPLE products to our China-based supply chain, unlocking significant cost of goods savings which we redeployed into more accessible pricing and greater brand investment. •We delivered $61 million in Adjusted EBITDA in FY 2021 while continuing to invest in marketing and digital. | |||||
2021 Proxy Statement | 8 |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
9 | 2021 Proxy Statement |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
Proposal 1: | |||||
þ FOR ALL | Our Board unanimously recommends a vote “FOR” all of the nominees for Class Our Board believes we have the right directors to lead |
•Director since 2016, Audit Committee member. | •Chief Marketing Officer of Snap, Inc. •Director since 2020, Compensation Committee member. | |||||||||||||||||||
Richard Wolford | ||||||||||||||||||||
•President of Global eCommerce and Business Development at Universal Music Group. •Director since 2018, Audit Committee member. | •Retired; Former Chairman of the Board, Chief Executive • |
2021 Proxy Statement | 10 |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
11 | 2021 Proxy Statement |
Annexes |
Age: | 55 | Current Occupation and Select Prior Experience • | ||||||
•Chief Financial Officer of Fanatics, Inc., a retailer of licensed sports apparel and merchandise, from June 2015 to September 2019. •Co-Founder and Managing Partner Other Affiliations/Experience/Information •25 years of financial and accounting experience. •Member of the board of directors of Crew Knitwear, a privately held Education •B.A. in Political Science from Duke University. •M.B.A. from Stanford University Graduate School of Business. | ||||||
Independent | ||||||
Director since: 2016 | ||||||
Term ends: 2021 | ||||||
Committees: | ||||||
Key qualifications: | ||||||
Retail/Beauty | ||||||
Financial/Accounting | ||||||
Corporate Governance | ||||||
Tech/Digital Media | ||||||
Operations | ||||||
Senior Leadership | ||||||
M&A/Transactions | ||||||
2021 Proxy Statement |
Kenny Mitchell | ||||||||
Age: | 45 | Current Occupation and Select Prior Experience •Chief Marketing Officer of Snap, Inc., a camera and social media company, since June 2019. •Vice President, Brand Content and Engagement, at McDonald’s Corporation, a fast food company, from February 2018 to June 2019. •Head of Consumer Engagement at Gatorade (a division of PepsiCo, Inc., a global food and beverage company) from March 2015 to February 2018. Other Affiliations/Experience/Information •Over 17 years of brand and marketing experience. •Member of the advisory board at The Tuck School of Business at Dartmouth. •Member of the board of the Sanford School. •Advisor to Overtime Elite, a professional basketball league for high schoolers. Education •A.B. in Economics and Sociology from Dartmouth College. •M.B.A. from The Tuck School of Business at Dartmouth. | ||||||
Independent | ||||||||
Director since: 2020 | ||||||||
Term ends: 2021 | ||||||||
Committees: Comp. | ||||||||
Key qualifications: | ||||||||
Consumer Products | ||||||||
Corporate Governance | ||||||||
Brand/Marketing | ||||||||
Tech/Digital Media | ||||||||
Senior Leadership | ||||||||
We believe Mr. Mitchell’s extensive experience in building iconic brands and driving industry-leading performance through innovative, fully-integrated and award-winning marketing programs provide him with the qualifications and skills to serve as a member of our Board. | ||||||||
13 | 2021 Proxy Statement |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
Richelle Parham | ||||||||
Age: | Current Occupation and Select Prior Experience •President of Global eCommerce and Business Development at Universal Music Group, a music publishing company, since June 2021. •Partner of WestRiver Group, an investment manager, •General Partner of Camden Partners, a private equity firm, from October 2016 to September 2019. •Vice President, Chief Marketing Officer, of eBay, Inc., a global payments and commerce company, from November 2010 to March 2015. •Head of Global Marketing Innovation and Initiatives and head of Global Marketing Services at Visa, Inc., a financial services company, from 2008 to 2010. Other Public Boards •Best Buy, Inc. (NYSE: BBY), an electronic products retailer (audit committee; and nominating, corporate governance, and public policy committee). •Laboratory Corporation of America (LabCorp) (NYSE: LH), a laboratory testing company (audit committee; and nominating and corporate governance committee). •Scripps Network Interactive Inc. (prior to acquisition, NYSE: SNI), a content developer for television, the Internet, and emerging platforms, from 2012 to 2018 when it was acquired. Other Affiliations/Experience/Information • Over 25 years of global strategy and marketing experience. • Member of the advisory board for Girls Who Code. • Member of the board of trustees of Drexel University. Education • Double B.S. in Business Administration and Design Arts from Drexel University. | |||||||
Independent | ||||||||
Director since: 2018 | ||||||||
Term ends: 2021 | ||||||||
Committees: Audit | ||||||||
Key qualifications: | ||||||||
Consumer Products | ||||||||
Financial/Accounting | ||||||||
Corporate Governance | ||||||||
Brand/Marketing | ||||||||
Tech/Digital Media | ||||||||
Public Company Boards | ||||||||
Senior Leadership | ||||||||
We believe Ms. Parham’s executive experience and global strategy and marketing experience, as well as expertise in understanding consumers, provide her with the qualifications and skills to serve as a member of our Board. | ||||||||
2021 Proxy Statement | 14 |
Age: | Current Occupation and Select Prior Experience •Interim President and Chief Executive Officer of Diamond Foods, Inc., a packaged food company, from February 2012 to May 2012. •Chief Executive Officer and President of Del Monte Foods Company, a food production and distribution company, from 1997 to 2011 when it was acquired. •Chief Executive Officer of HK Acquisition Corp., a food industry investment manager, from 1988 to 1996. •President of Dole Packaged Foods, a division of Dole Food Company, Inc., a multinational agricultural company, from 1982 to 1987. Other Public Company Boards •Schiff Nutrition, Inc. (prior to acquisition, NYSE: SHF) from 2011 to 2013 when it was acquired. •Del Monte Foods Company (Chairman) (prior to acquisition, NYSE: DLM) from 1997 to 2011 when it was acquired (chairman of the board of directors from 2000 to 2011). Other Affiliations/Experience/Information •Over 30 years leading consumer products businesses. •Former and current member of the boards of directors of numerous private companies. •Chairman of the board of directors of the Grocery Manufacturers Association (“GMA”), from 2010 to 2011, resigning upon the sale of Del Monte Foods Company, and Vice Chairman of GMA from 2008 to 2010. •Member of the board of directors of Consumer Goods Forum, a global association of consumer-packaged goods companies, retailers, and manufacturers, during tenure as Chairman of GMA. Education • B.A. in Economics from Harvard University. | |||||||
Independent | ||||||||
Director since: 2014 | ||||||||
Term ends: 2021 | ||||||||
Committees: Audit (Chair) | ||||||||
Key qualifications: | ||||||||
Consumer Products | ||||||||
Financial/Accounting | ||||||||
Corporate Governance | ||||||||
Operations | ||||||||
Public Company Boards | ||||||||
Senior Leadership | ||||||||
M&A/Transactions | ||||||||
We believe Mr. Wolford’s extensive public company management, reporting, finance, and corporate governance experience, as well as deep knowledge of the consumer products industry, provide him with the qualifications and skills to serve as a member of our Board. | ||||||||
15 | 2021 Proxy Statement |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
Tarang Amin Chairman | ||||||||
Age: | 56 | Current Occupation and Select Prior Experience •Chief Executive Officer of e.l.f. Beauty since January 2014, Chairman of the Board since August 2015, and President of e.l.f. Beauty since March 2019. •President and Chief Executive Officer of Schiff Nutrition, Inc. (prior to acquisition, NYSE: SHF), a manufacturer of nutritional supplements, from March 2011 to January 2013 when it was acquired. •Vice President, General Manager, Litter, Food, and Charcoal Strategic Business Units, of The Clorox Company, a multinational manufacturer and marketer of consumer products, from April 2008 to March 2013. Other Public Company Boards •Schiff Nutrition, Inc. (prior to acquisition, NYSE: SHF) from 2011 to 2013 when it was acquired. Other Affiliations/Experience •Nearly 30 years of experience leading consumer products and retail businesses. •Member of the board of directors of Pharmavite LLC, a privately held dietary supplements company. Education •B.A. in International Policy from Duke University. •M.B.A. from Duke University. | ||||||
Director since: 2014 | ||||||||
Term ends: 2022 | ||||||||
Committees: None | ||||||||
Key qualifications: | ||||||||
Consumer Products | ||||||||
Retail/Beauty | ||||||||
Corporate Governance | ||||||||
Brand/Marketing | ||||||||
Tech/Digital Media | ||||||||
Operations | ||||||||
Public Company Boards | ||||||||
Senior Leadership | ||||||||
M&A/Transactions | ||||||||
2021 Proxy Statement | 16 |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
Lori Keith | ||||||||
Age: | 52 | Current Occupation and Select Prior Experience •Portfolio Manager of the Parnassus Mid Cap Fund at Parnassus Investments since 2008. •Senior Research Analyst at Parnassus Investments from 2005 to 2008. •Vice President of Investment Banking at Deloitte & Touche Corporate Finance from 2001 to 2003. Other Affiliations/Experience/Information •Over 25 years of financial and institutional investment experience, including ESG and sustainable investing experience. •Member of the executive committee of Parnassus Investments. •Member of the board of trustees of The Athenian School. Education •B.A. in Economics from the University of California, Los Angeles. •M.B.A. from Harvard Business School. | ||||||
Independent | ||||||||
Director since: 2020 | ||||||||
Term ends: 2022 | ||||||||
Committees: NomGov | ||||||||
Key qualifications: | ||||||||
Financial/Accounting | ||||||||
Corporate Governance | ||||||||
Senior Leadership | ||||||||
M&A/Transactions | ||||||||
17 | 2021 Proxy Statement |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
Kirk Perry | ||||||||
Age: | 54 | Current Occupation and Select Prior Experience •President and Chief Executive Officer of Information Resources, Inc. (“IRI”), a data analytics and market research company, since May 2021. •President, Global Client and Agency Solutions at Google LLC, a technology company, from December 2013 to May 2021. •President, Global Family Care at The Procter & Gamble Company, a multinational consumer goods company, from May 2011 to December 2013. Other Public Company Boards •The J. M. Smucker Company (NYSE: SJM), a branded food products manufacturer (executive compensation committee). Other Affiliations/Experience/Information •24 years of consumer products experience with Procter & Gamble. •Member of the board of directors of the Hillerich & Bradsby Co. (Louisville Slugger), a sporting goods manufacturer, from September 2013 to August 2017. •Member of the boards of directors of several non-profit organizations. Education •B.B.A. in Marketing and Finance from the University of Cincinnati. | ||||||
Independent | ||||||||
Director since: 2016 | ||||||||
Term ends: 2023 | ||||||||
Committees: Comp. (Chair) | ||||||||
Key qualifications: | ||||||||
Consumer Products | ||||||||
Corporate Governance | ||||||||
Brand/Marketing | ||||||||
Tech/Digital Media | ||||||||
Operations | ||||||||
Public Company Boards | ||||||||
Senior Leadership | ||||||||
2021 Proxy Statement | 18 |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
Beth Pritchard Lead Independent Director | ||||||||
Age: | 74 | Current Occupation and Select Prior Experience •Principal and Strategic Advisor of Sunrise Beauty Studio, LLC, a beauty branding company, from 2009 to October 2017. •North American Advisor to M.H. Alshaya Co., a multinational retail franchise operator based in the Middle East, from 2008 to 2013. •President and CEO and subsequent Vice Chairman of Dean & DeLuca, Inc., a gourmet and specialty foods retailer, from 2006 to 2009. •President and Chief Executive Officer of Organized Living Inc., an organization products company, from 2004 to 2005. •Various executive positions with L Brands, Inc., a multinational apparel and retail company, from 1991 to 2003 (President and CEO of Bath & Body Works, CEO of Victoria’s Secret Beauty, and CEO of The White Barn Candle Company). Other Public Company Boards •Loblaw Companies Limited (TSE: L), a food and pharmacy company (governance, employee development, nominating and compensation committee; and risk and compliance committee). •Cabela’s Inc. (prior to acquisition, NYSE: CAB), an outdoor products retailer, from 2011 to 2017 when it was acquired. •Vitamin Shoppe, Inc. (NYSE: VSI) from 2008 to 2018. Other Affiliations/Experience/Information •Over 30 years of experience leading consumer products and retail businesses. •Former member of the boards of directors of numerous private companies. •2019 National Association of Corporate Directors Education •B.A. in International Relations from the University of Wisconsin-Milwaukee. •M.B.A. from Marquette University. | ||||||
Independent | ||||||||
Director since: 2017 | ||||||||
Term ends: 2022 | ||||||||
Committees: NomGov (Chair) | ||||||||
Key qualifications: | ||||||||
Consumer Products | ||||||||
Retail/Beauty | ||||||||
Corporate Governance | ||||||||
Brand/Marketing | ||||||||
Operations | ||||||||
Public Company Boards | ||||||||
Senior Leadership | ||||||||
M&A/Transactions | ||||||||
19 | 2021 Proxy Statement |
Age: | Current Occupation and Select Prior Experience • •Senior Vice President, Merchandising, at Sephora USA, Inc., a cosmetics and personal care products retailer, from March 2013 to March 2015. •Senior Vice President, Global Sales and Merchandising of Lucky Brand Jeans, at Lucky Brand, Inc., a clothing company, from Other Affiliations/Experience/Information •Over 30 years • Education •B.A. in | |||||||
Independent | ||||||||
Director since: | ||||||||
Term ends: | ||||||||
Committees: | ||||||||
Key qualifications: | ||||||||
Consumer Products | ||||||||
Corporate Governance | ||||||||
Senior Leadership | ||||||||
20 |
committee memberships | ||||||||||||||||||||||||||
name | independent | age | years on board | audit | comp | nomgov | ||||||||||||||||||||
Tarang Amin—Chairman | 56 | 7.4 | ||||||||||||||||||||||||
Lori Keith | ü | 52 | 1.0 | Member | ||||||||||||||||||||||
Lauren Cooks Levitan | ü | 55 | 4.9 | Member | ||||||||||||||||||||||
Kenny Mitchell | ü | 45 | 0.7 | Member | ||||||||||||||||||||||
Richelle Parham | ü | 53 | 3.3 | Member | ||||||||||||||||||||||
Kirk Perry | ü | 54 | 4.8 | Chair | ||||||||||||||||||||||
Beth Pritchard—Lead Independent Director | ü | 74 | 3.7 | Chair | ||||||||||||||||||||||
Maureen Watson | ü | 53 | 5.9 | Member | ||||||||||||||||||||||
Richard Wolford | ü | 76 | 6.9 | Chair | ||||||||||||||||||||||
Percentage/Average | 89% | 58 | 4.3 |
committee memberships | ||||||||
name | independent | age | years on board | audit | comp | nomgov | ||
Tarang Amin—Chairman | 55 | 6.4 | ||||||
Lori Keith | ü | 51 | <1 | member | ||||
Lauren Cooks Levitan | ü | 54 | 3.9 | member | ||||
Richelle Parham | ü | 52 | 2.3 | member | ||||
Kirk Perry | ü | 53 | 3.8 | chair | ||||
Beth Pritchard—Lead Independent Director | ü | 73 | 2.7 | chair | ||||
Sabrina Simmons | ü | 57 | 4.3 | chair | ||||
Maureen Watson | ü | 52 | 4.9 | member | ||||
Richard Wolford | ü | 75 | 5.9 | member |
89% Independent | 56% Women | 33% Diverse | 4.3years Average Tenure | 58 Average Age |
1 of 5 Public Companies with | >55% Women on Board of Directors | and | >20% Black Representation on Board of Directors |
percentage of directors | |||||||||||
American Indian or Alaska Native | — | ||||||||||
Asian | 11 | % | |||||||||
Black or African American | 22 | % | |||||||||
Native Hawaiian or Other Pacific Islander | — | ||||||||||
Hispanic, Latinx or Spanish Origin | — | ||||||||||
White | 67 | % | |||||||||
Male | 44 | % | |||||||||
Female | 56 | % |
2021 Proxy Statement |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Add’l. Info | Q&A | Annexes |
name | consumer products | retail/beauty | financial/accounting | corporate governance | brand/marketing | tech/ digital media | operations | public company boards | senior leadership | m&a/transactions | ||||||||||||||||||||||
Tarang Amin | ü | ü | ü | ü | ü | ü | ü | ü | ü | |||||||||||||||||||||||
Lori Keith | ü | ü | ü | ü | ||||||||||||||||||||||||||||
Lauren Cooks Levitan | ü | ü | ü | ü | ü | ü | ü | |||||||||||||||||||||||||
Kenny Mitchell | ü | ü | ü | ü | ü | |||||||||||||||||||||||||||
Richelle Parham | ü | ü | ü | ü | ü | ü | ü | |||||||||||||||||||||||||
Kirk Perry | ü | ü | ü | ü | ü | ü | ü | |||||||||||||||||||||||||
Beth Pritchard | ü | ü | ü | ü | ü | ü | ü | ü | ||||||||||||||||||||||||
Maureen Watson | ü | ü | ü | ü | ü | ü | ||||||||||||||||||||||||||
Richard Wolford | ü | ü | ü | ü | ü | ü | ü | |||||||||||||||||||||||||
78% | 44% | 44% | 100% | 67% | 67% | 56% | 56% | 100% | 56% |
2021 Proxy Statement | 22 |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
class I | term ends | class II | term ends | class III | term ends | ||
Kirk Perry | 2020 | Lauren Cooks Levitan | 2021 | Tarang Amin | 2022 | ||
Sabrina Simmons | 2020 | Richelle Parham | 2021 | Lori Keith | 2022 | ||
Maureen Watson | 2020 | Richard Wolford | 2021 | Beth Pritchard | 2022 |
class I | term ends | class II | term ends | class III | term ends | ||||||||||||||||||||||||
Kirk Perry | 2023 | Lauren Cooks Levitan | 2021 | Tarang Amin | 2022 | ||||||||||||||||||||||||
Maureen Watson | 2023 | Kenny Mitchell (1) | 2021 | Lori Keith | 2022 | ||||||||||||||||||||||||
Richelle Parham | 2021 | Beth Pritchard | 2022 | ||||||||||||||||||||||||||
Richard Wolford | 2021 | ||||||||||||||||||||||||||||
(1) | If elected to the Board at the 2021 annual meeting, Mr. Mitchell will be reclassified by our Board as a Class I director (and serve a two-year term rather than a three-year term) in order for the directors to be evenly distributed across the three classes. The imbalance in the classes was created by the appointment of Mr. Mitchell as a Class II director in November 2020 and the resignation of Sabrina Simmons, a Class I director, effective May 31, 2021. |
23 | 2021 Proxy Statement |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
name | position | ||||
Tarang Amin | Chairman | ||||
Kirk Perry | Chair of the Compensation Committee | ||||
Beth Pritchard | Lead Independent Director and Chair of the Nominating and Corporate Governance Committee | ||||
Chair of the Audit Committee |
2021 Proxy Statement | 24 |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
role | key responsibilities | ||||||||||
Chairman | •Presides over meetings of our Board. | ||||||||||
•Sets the | |||||||||||
•Consults and advises our Board and its committees on the business and affairs of | |||||||||||
•Performs such other duties as may be assigned by our Board. | |||||||||||
Chief Executive Officer | •In charge of the daily affairs of | ||||||||||
Lead Independent Director | •Together with the Chairman and management, develops and approves Board meeting agendas and meeting schedules. | ||||||||||
•Provides to our Board supplemental materials or information as advisable. | |||||||||||
•Presides at executive sessions of the independent directors. | |||||||||||
•Facilitates discussion and open dialogue among the independent directors. | |||||||||||
•Serves as a liaison between the Chairman and management and the independent directors. |
•Communicates to the Chairman and management, as appropriate, any decisions reached, suggestions, views or concerns expressed by independent directors. | |||||||||||
•In appropriate circumstances and in conjunction with our Board, makes himself or herself available for consultation and communication with | |||||||||||
•Provides the Chairman with feedback and counsel concerning the Chairman’s interactions with our Board. | |||||||||||
•Performs such functions and duties set forth in the Lead Independent Director Guidelines. | |||||||||||
Committee Chairs | •Preside over committee meetings. | ||||||||||
•Set the agenda and schedules for committee meetings. | |||||||||||
•Regularly report to the full Board on committee activities. |
25 | 2021 Proxy Statement |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
Audit Committee | |||||||||||||||||
lll 3 out of 3 | |||||||||||||||||
Richard Wolford (Chair) | |||||||||||||||||
lll 3 out of 3 | |||||||||||||||||
(1) | Each member of the Audit Committee meets the independence requirements of SEC regulations and NYSE listing standards. | ||||||||||||||||
(2) | Designated as an “audit committee financial expert” by our Board within the meaning of Securities and Exchange Commission (“SEC”) regulations. | ||||||||||||||||
(3) | Per NYSE’s financial literacy requirements. | ||||||||||||||||
•Appoints, compensates, retains, and oversees the work of our independent auditors. | •Oversees and evaluates the scope of the external and internal audit reviews and results. | ||||||||||||||||
•Assesses the qualification and independence of our independent auditors. | •Reviews and discusses with management | ||||||||||||||||
•Oversees and reviews our financial and accounting controls and processes. | •As appropriate, initiates inquiries into aspects of our internal accounting controls and financial affairs. | ||||||||||||||||
ll 2 out of 2 | |||||||||||||||||||||
Kirk Perry (Chair) | |||||||||||||||||||||
(1) | Each member of the Compensation Committee meets the independence requirements of SEC regulations, the regulations of the Internal Revenue Code of 1986 (the “Internal Revenue Code”), and NYSE listing standards. | ||||||||||||||||||||
Primary responsibilities: | |||||||||||||||||||||
•Reviews and sets the compensation of our executive officers. | •Reviews and makes recommendations to our Board regarding compensation for our directors. | ||||||||||||||||||||
•Reviews and approves all employment, severance, and change in control arrangements with our executive officers. | •Reviews and approves our incentive-compensation and equity-based compensation plans. | ||||||||||||||||||||
2021 Proxy Statement | ||||||||
Nominating and Corporate Governance Committee | |||||||||||||||||
Current members: | Independent (1): | lll 3 out of 3 | Three meetings held in FY 2021. | ||||||||||||||
Beth Pritchard (Chair) | |||||||||||||||||
Lori Keith | |||||||||||||||||
Maureen Watson | |||||||||||||||||
(1) | Each member of the Nominating and Corporate Governance Committee meets the independence requirements of NYSE listing standards. | ||||||||||||||||
Primary responsibilities: | |||||||||||||||||
•Oversees our corporate governance policies and ESG program and policies. | •Makes recommendations regarding candidates for our Board and Board committees. | ||||||||||||||||
•Oversees the evaluation of our Board. | •Makes recommendations regarding governance matters. |
Sources for Candidates | è è è | In Depth Review by Nominating and Corporate Governance Committee | è è è | Nomination/Appointment/Election | ||||||||||
Directors Management Stockholders Search firms | Candidate qualifications Current Board composition Independence and potential conflicts Diversity | Recommend slate of nominees êêê Full Board review and approval êêê Nomination/appointment/election | ||||||||||||
•personal and professional integrity | •experience in the industries in which we operate | |||||||
•ethics and values | •conflicts of interest | |||||||
•experience in corporate management, such as serving as an officer or former officer | •experience as a board member or executive officer of another publicly held company | |||||||
•practical and mature business judgment | •diversity of expertise and experience in substantive matters pertaining to our business relative to other Board members |
27 | 2021 Proxy Statement |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
2021 Proxy Statement | 28 |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
29 | 2021 Proxy Statement |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
retainer | cash (1) | stock award (2) | total | ||||||||||||||
Annual Retainer | $ | 45,000 | $ | 140,000 | $ | 185,000 | |||||||||||
Lead Independent Director Retainer | $ | 20,000 | — | $ | 20,000 | ||||||||||||
Audit Committee Chairperson Retainer | $ | 15,000 | — | $ | 15,000 | ||||||||||||
Audit Committee Member Retainer | $ | 7,500 | — | $ | 7,500 | ||||||||||||
Compensation Committee Chairperson Retainer | $ | 10,000 | — | $ | 10,000 | ||||||||||||
Compensation Committee Member Retainer | $ | 5,000 | — | $ | 5,000 | ||||||||||||
Nominating and Corporate Governance Committee Chairperson Retainer | $ | 6,000 | — | $ | 6,000 | ||||||||||||
Nominating and Corporate Governance Committee Member Retainer | $ | 3,000 | — | $ | 3,000 | ||||||||||||
(1) | The cash portion is paid on a quarterly basis, based on a “Board term” (which runs from annual meeting of stockholders to annual meeting of stockholders). If a director does not serve as a non-employee director for the entire quarter, the cash portion of the retainer will be pro-rated based on the portion of the quarter that director served as a non-employee director. Prior to January 1 of any year, a non-employee director may elect to receive all of his or her cash retainers for the following year in the form of time-vesting restricted stock units (“RSUs”), which are granted on the date of the annual meeting of stockholders and vest on the same schedule as the RSU portion of the annual retainer as described in footnote 2. | ||||||||||||||||
(2) | Payable in time-vesting RSUs. The actual number of RSUs granted to a non-employee director is calculated by dividing the dollar amount of the award by the closing trading price of our common stock on the date of grant. The dollar amount of the award is pro-rated for new non-employee directors. The RSU portion of the annual retainer is granted on the date of each annual meeting of stockholders, or for new non-employee directors, on the date of appointment, and vests in full on the earlier of (i) the first anniversary of the grant date or (ii) immediately prior to the next annual meeting of stockholders after the grant date, subject to the director continuing to serve as a non-employee director through the vesting date. All RSUs granted to our non-employee directors pursuant to the Non-Employee Director Compensation Program vest fully immediately prior to the occurrence of a change in control (as defined in our 2016 Equity Incentive Award Plan). |
retainer | cash (1) | stock award (2) (3) | total | ||||||||
Annual Retainer | $ | 45,000 | $ | 175,000 | $ | 220,000 | |||||
Lead Independent Director Retainer | $ | 20,000 | — | $ | 20,000 | ||||||
Audit Committee Chairperson Retainer | $ | 15,000 | — | $ | 15,000 | ||||||
Audit Committee Member Retainer | $ | 7,500 | — | $ | 7,500 | ||||||
Compensation Committee Chairperson Retainer | $ | 10,000 | — | $ | 10,000 | ||||||
Compensation Committee Member Retainer | $ | 5,000 | — | $ | 5,000 | ||||||
Nominating and Corporate Governance Committee Chairperson Retainer | $ | 6,000 | — | $ | 6,000 | ||||||
Nominating and Corporate Governance Committee Member Retainer | $ | 3,000 | — | $ | 3,000 | ||||||
(1) | The cash portion is paid on a quarterly basis. If a director does not serve as a non-employee director for the entire period, the cash portion of the annual retainers will be pro-rated based on the portion of the period that director served as a non-employee director. Prior to January 1 of any year, a non-employee director may elect to receive all of his or her annual cash retainer for the following year in the form of time-vesting restricted stock units (“RSUs”). | ||||||||||
(2) | Payable in time-vesting RSUs. The actual number of RSUs granted to a non-employee director is calculated by dividing the dollar amount of the award by the closing trading price of our common stock on the date of grant. The dollar amount of the award is pro-rated for new non-employee directors. The RSU portion of the annual retainer is granted on the date of each annual meeting of stockholders, or for new non-employee directors, on the date of appointment, and vests in full on the earlier of (i) the first anniversary of the grant date or (ii) immediately prior to the next annual meeting of stockholders after the grant date, subject to the director continuing to serve as a non-employee director through the vesting date. All RSUs granted to our non-employee directors pursuant to the Non-Employee Director Compensation Program vest fully immediately prior to the occurrence of a change in control (as defined in our 2016 Equity Incentive Award Plan). | ||||||||||
(3) | For the 2019-2020 board term, the value of the stock award was increased by 25% (or $35,000) to account for the extra quarter between the 2019 annual meeting of stockholders (May 2019) and the 2020 annual meeting (August 2020) as a result of the change in our fiscal year-end. The fiscal year-end change resulted in there being five quarters of Board service between annual meetings instead of the normal four. For the 2020-2021 board term and future board terms, the value of the stock award for our non-employee directors will return to $140,000 under our Non-Employee Director Compensation Program. |
name | fees earned or paid in cash | stock awards (1) (6) | total | |||||||||||||||||||||||
Lori Keith (2) | $ | 36,103 | $ | 161,841 | $ | 197,944 | ||||||||||||||||||||
Lauren Cooks Levitan | $ | 50,000 | $ | 139,988 | $ | 189,988 | ||||||||||||||||||||
Kenny Mitchell (3) | $ | 17,414 | $ | 108,926 | $ | 126,340 | ||||||||||||||||||||
Richelle Parham | $ | 52,500 | $ | 139,988 | $ | 192,488 | ||||||||||||||||||||
Kirk Perry (4) | $ | 69,466 | $ | 139,998 | $ | 209,464 | ||||||||||||||||||||
Beth Pritchard | $ | 71,000 | $ | 139,988 | $ | 210,988 | ||||||||||||||||||||
Sabrina Simmons (5) | $ | 60,000 | $ | 139,988 | $ | 199,988 | ||||||||||||||||||||
Maureen Watson (4) | $ | 60,000 | $ | 139,993 | $ | 199,993 | ||||||||||||||||||||
Richard Wolford (4) | $ | 65,625 | $ | 139,988 | $ | 205,613 |
30 |
name (1) | year | fees earned or paid in cash | stock award (2) (12) | total | |||||||||||
Stephen Ellis (3) (4) | 2020 | — | — | — | |||||||||||
2019T | — | — | — | ||||||||||||
Lauren Cooks Levitan (5) (6) | 2020 | $ | 44,156 | $ | 174,996 | $ | 219,152 | ||||||||
2019T | — | — | — | ||||||||||||
William McGlashan, Jr. (3) (7) | 2019T | — | — | — | |||||||||||
Richelle Parham (8) | 2020 | $ | 49,272 | $ | 174,996 | $ | 224,268 | ||||||||
2019T | $ | 11,917 | — | $ | 11,917 | ||||||||||
Kirk Perry (6) (9) (10) | 2020 | $ | 52,338 | $ | 174,996 | $ | 227,334 | ||||||||
2019T | $ | 1,111 | — | $ | 1,111 | ||||||||||
Beth Pritchard (11) | 2020 | $ | 70,690 | $ | 174,996 | $ | 245,687 | ||||||||
2019T | $ | 15,083 | — | $ | 15,083 | ||||||||||
Sabrina Simmons (6) | 2020 | $ | 51,404 | $ | 174,996 | $ | 226,400 | ||||||||
2019T | — | — | — | ||||||||||||
Maureen Watson (6) (9) | 2020 | $ | 47,993 | $ | 174,996 | $ | 222,989 | ||||||||
2019T | — | — | — | ||||||||||||
Richard Wolford (6) (9) | 2020 | $ | 52,500 | $ | 174,996 | $ | 227,497 | ||||||||
2019T | — | — | — | ||||||||||||
(1) | Does not include Ms. Keith as Ms. Keith was appointed to our Board after FY 2020. | ||||||||||||||
(2) | Represents the grant date fair value of RSUs granted to the director, calculated in accordance with FASB ASC Topic 718 for stock-based compensation transactions, disregarding the effects of estimated forfeitures. For a discussion of the valuation of these awards, see Notes to Consolidated Financial Statements at Note 14 in the 2020 Annual Report. These amounts do not reflect the amount the director has actually realized or will realize from the awards upon the vesting of the granted RSUs, or the sale of the shares underlying the granted RSUs. | ||||||||||||||
(3) | Mr. McGlashan and Mr. Ellis were not entitled to receive any compensation under our Non-Employee Director Compensation Policy due to their affiliation with TPG. | ||||||||||||||
(4) | Mr. Ellis resigned from our Board on December 3, 2019. | ||||||||||||||
(5) | Ms. Levitan was a member of the Audit Committee from January 1, 2019 to December 3, 2019 and was appointed to the Compensation Committee on December 3, 2019. | ||||||||||||||
(6) | Elected to receive RSUs in lieu of cash for the 2018-2019 board term (May 22, 2018 to May 21, 2019). The RSUs for the 2018-2019 board term were granted on May 22, 2018. The grant date fair value of the RSUs, calculated in accordance with FASB ASC Topic 718 for stock-based compensation transactions, were reported in the Company’s proxy statement for the 2019 annual meeting of stockholders, which was filed with the SEC on April 10, 2019. | ||||||||||||||
(7) | Mr. McGlashan resigned from our Board on March 13, 2019. | ||||||||||||||
(8) | Ms. Parham was a member of the Nominating and Corporate Governance Committee from January 10, 2019 to December 3, 2019 and was appointed to the Audit Committee on December 3, 2019. | ||||||||||||||
(9) | Elected to receive RSUs in lieu of cash for the 2019-2020 board term (May 21, 2019 to the date of the 2020 annual meeting). The RSUs for the 2019-2020 board term were granted on May 21, 2019. The grant date fair value of the RSUs, calculated in accordance with FASB ASC Topic 718 for stock-based compensation transactions based on the assumptions described in footnote 1, is reflected in the “fees earned or paid in cash” column. | ||||||||||||||
(10) | Mr. Perry was appointed to the Compensation Committee on January 10, 2019 and appointed as the chair of the Compensation Committee on December 3, 2019. (i) $1,111 in 2019T and approximately $694 in FY 2020 in the “fees earned or paid in cash” column represent the additional compensation that Mr. Perry was entitled to after his appointment to the Compensation Committee and (ii) approximately $1,646 in FY 2020 in the “fees earned or paid in cash” column represents the additional compensation that Mr. Perry was entitled to after his appointment as the chair of the Compensation Committee, which, in each case, was paid in cash rather than RSUs for administrative purposes. | ||||||||||||||
(11) | Ms. Pritchard was appointed as the chair of the Nominating and Corporate Governance Committee on January 10, 2019 and as Lead Independent Director on February 14, 2019. | ||||||||||||||
(12) | The following table shows the number of unexercised stock options and RSUs held by our non-employee directors as of March 31, 2020. |
(1) | Represents the grant date fair value of annual RSUs granted to the director, calculated in accordance with FASB ASC Topic 718 for stock-based compensation transactions, disregarding the effects of estimated forfeitures. For a discussion of the valuation of these awards, see Notes to Consolidated Financial Statements at Note 14 in the 2021 Annual Report. These amounts do not reflect the amount the director has actually realized or will realize from the awards upon the vesting of the granted RSUs, or the sale of the shares underlying the granted RSUs. | ||||||||||||||||||||||||||
(2) | Ms. Keith was appointed to our Board on July 2, 2020 and, as such, received a pro-rated equity | ||||||||||||||||||||||||||
(3) | |||||||||||||||||||||||||||
(4) | |||||||||||||||||||||||||||
(5) | |||||||||||||||||||||||||||
(6) |
name | unexercised stock options | RSUs (*) | |||||||||||||||
Lori Keith | — | 7,474 | |||||||||||||||
Lauren Cooks Levitan | 34,500 | 7,474 | |||||||||||||||
Kenny Mitchell | — | 4,967 | |||||||||||||||
Richelle Parham | — | 7,474 | |||||||||||||||
Kirk Perry | 27,600 | 10,411 | |||||||||||||||
Beth Pritchard | — | 7,474 | |||||||||||||||
Maureen Watson | 34,500 | 10,037 | |||||||||||||||
Richard Wolford | 34,500 | 10,277 | |||||||||||||||
(*) | 100% of the RSUs will vest on the date of the 2021 annual meeting, subject to the director’s continued service through such date. |
name | unexercised stock options | RSUs (*) | |||||
Lauren Cooks Levitan | 34,500 | 14,403 | |||||
Richelle Parham | — | 14,403 | |||||
Kirk Perry | 13,800 | 18,518 | |||||
Beth Pritchard | — | 14,403 | |||||
Sabrina Simmons | 34,500 | 14,403 | |||||
Maureen Watson | 34,500 | 18,353 | |||||
Richard Wolford | 34,500 | 18,724 | |||||
(*) | 100% of the RSUs will vest on the date of the 2020 annual meeting, subject to the director’s continued service through such date. |
31 | 2021 Proxy Statement |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
32 |
Tarang Amin | |||||
Age: | Current Role •Mr. Amin has served as our Chief Executive Officer since January 2014 and as our President since March 2019. More Information •For more information about Mr. Amin, see under the heading “ | ||||
Rich Baruch | |||||
Age: 52 | Current Role •Mr. Baruch has served as our Senior Vice President and Chief Commercial Officer since February 2014. Select Prior Experience •Senior Vice President and Chief Commercial Officer at Schiff Nutrition (until its acquisition, NYSE: SHF) from July 2012 to January 2013 when it was acquired. •Vice President, Category Advisory Services at Coca-Cola Refreshments, a division of The Coca-Cola Company (NYSE: KO), a leading global beverage company, from December 2010 to June 2012. •Over 10 years sales leadership experience with The Clorox Company. Education •B.A. in English from University of Pennsylvania. | ||||
33 | 2021 Proxy Statement |
Mandy Fields | |||||
Age: | Current Role •Ms. Fields has served as our Senior Vice President and Chief Financial Officer since April 2019. Select Prior Experience •Chief Financial Officer of BevMo!, a retailer of alcoholic beverages, from June 2016 to March 2019. •Vice President of Finance and Analytics at Albertsons Companies, a grocery company, from Education •B.S. in Finance from Indiana University of Bloomington’s Kelley School of Business. | ||||
Josh Franks | |||||
Age: | Current Role •Mr. Franks has served as our Senior Vice President, Operations since January 2020. Select Prior Experience •Senior Vice President, Operations and Supply Chain, at Lyrical Foods (d/b/a Kite-Hill), a plant-based, dairy-free packaged food manufacturer, from July 2018 to December 2019. •Vice President, Operations and Supply Chain, at Raybern Foods, a packaged food manufacturer, from April 2014 to March 2018. Education •B.S. in Business Administration, Operations Management, and Supply Chain Management from North Carolina State University. | ||||
34 |
Kory Marchisotto | |||||
Age: | Current Role •Ms. Marchisotto has served as our Senior Vice President and Chief Marketing Officer since February 2019. Select Prior Experience •Senior Vice President, Marketing for bareMinerals, a brand of Shiseido Americas Corporation (TYO: 4911), a global beauty company, from 2016 to 2018. •Senior Vice President of Marketing, Beauty Prestige Group (from 2015 to 2016) and Vice President of Marketing, Beauty Prestige Group (from 2011 to 2015) at Shiseido Americas Corporation. Education •Masters of Professional Studies, Cosmetics and Fragrance Marketing and Management from the Fashion Institute of Technology. •B.B.A. in Marketing from Pace University’s Lubin School of Business. | ||||
Scott Milsten | |||||
Age: | Current Role •Mr. Milsten has served as our Senior Vice President, General Counsel, and Corporate Secretary since January 2014 and as our Chief People Officer since August 2016. Select Prior Experience •Senior Vice President, General Counsel, and Corporate Secretary at Schiff Nutrition (until its acquisition, NYSE: SHF) from July 2011 to January 2013 when it was acquired. •Senior Vice President, General Counsel, and Corporate Secretary of Celera Corporation, a health-care diagnostics company (until its acquisition, NASDAQ: CRA), from August 2009 to June 2011 when it was acquired. Education •B.A. in English from Duke University. •J.D. from University of Pennsylvania Law School. | ||||
35 | 2021 Proxy Statement |
Encourage Self Expression | Empower Others | Embody Our Ethics | ||||||
We celebrate diversity and make the best of beauty accessible. | We provide equal opportunities for growth and success. | We do the right thing for all people, the planet and our furry friends. | ||||||
As a company, our shared value system is what connects us and guides our decisions: •Delight our consumer. Our consumers inspire and inform us. They are the reason we are here and at the heart of everything we do. •Work together to win. We treat each other with respect and leverage each other’s strengths. We are open, honest and direct in the spirit of helping the team succeed. | |||||
•Do the right thing. In our actions and words, we lead with honesty and integrity. We don’t take shortcuts. •Execute with speed and quality. Consumers know us by what they see, touch and experience. Execution matters and we are passionate about doing things well and with speed. |
Our commitment to diversity, equity, and inclusion is infinite. We believe in a world where everyone can own their beauty, without compromise. Our mission is to make the best of beauty accessible to every eye, lip and face and we believe it is important that our team reflects the diverse consumers we serve. |
2021 Proxy Statement | 36 |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
board of directors | senior leadership (1) | all employees (2) | |||||||||||||||
Gender | |||||||||||||||||
Female | 56 | % | 43 | % | 77 | % | |||||||||||
Male | 44 | % | 57 | % | 23 | % | |||||||||||
Age | |||||||||||||||||
Millennial and Gen Z | — | — | 63 | % | |||||||||||||
All other | 100 | % | 100 | % | 37 | % | |||||||||||
Race/Ethnicity | |||||||||||||||||
Black or African American | 22 | % | 14 | % | 8 | % | |||||||||||
Hispanic or Latinx | — | — | 14 | % | |||||||||||||
Asian | 11 | % | 29 | % | 15 | % | |||||||||||
Native American | — | — | 1 | % | |||||||||||||
Two or more races | — | — | 5 | % | |||||||||||||
White | 67 | % | 57 | % | 58 | % | |||||||||||
(1) | Includes all executive officers and our Vice President, General Manager of our China Operations. | ||||||||||||||||
(2) | Includes our employees in the United States, United Kingdom, and Canada, where over 70% of our workforce is located. |
37 | 2021 Proxy Statement |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
2021 Proxy Statement | 38 |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
e.l.f. Beauty | consumer goods and services 2020 benchmark | difference (percentage points) | |||||||||||||||
Employee Engagement | 88 | % | 71 | % | +17% | ||||||||||||
Questions that determine employee engagement | |||||||||||||||||
I would recommend my company as a great place to work | 94 | % | 82 | % | +12% | ||||||||||||
My company motivates me to go beyond what I would in a similar role elsewhere | 91 | % | 69 | % | +22% | ||||||||||||
I am proud to work for my company | 95 | % | 88 | % | +7% | ||||||||||||
I rarely think about looking for a job at another company | 78 | % | 54 | % | +24% | ||||||||||||
I see myself working at my company in two years’ time | 84 | % | 63 | % | +21% |
39 | 2021 Proxy Statement |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
•we paid compensation to |
2021 Proxy Statement | 40 |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
41 | 2021 Proxy Statement |
þ FOR | Our Board unanimously recommends a vote “FOR” the approval, on an advisory basis, of the compensation for our named Our Board believes our executive compensation program aligns the interests of our executive officers with the long-term interests of our stockholders and, consistent with our pay-for-performance culture, rewards our executive officers when |
Named Executive Officers, starting on page 43; | |||||||||
Executive Summary, starting on page 43; | |||||||||
Compensation Philosophy, Objectives, and Design, starting on page 47; | |||||||||
• | Compensation Setting Process, starting on page 48; | ||||||||
• | Compensation Program Components, starting on page 50; and | ||||||||
• | Other Compensation Information, starting on page 58. |
name | position | ||||||||||
Tarang Amin | Chairman, Chief Executive Officer, President, and Director | ||||||||||
Rich Baruch | Senior Vice President and Chief Commercial Officer | ||||||||||
Mandy Fields | Senior Vice President and Chief Financial Officer | ||||||||||
Senior Vice President | |||||||||||
Scott Milsten | Senior Vice President, General Counsel, Chief People Officer, and Corporate Secretary |
43 | 2021 Proxy Statement |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
e.l.f. Cosmetics makes the best of beauty accessible to every eye, lip and face by offering high-quality, prestige-inspired cosmetics and skincare products at an extraordinary value, all formulated 100% vegan and cruelty-free. | |||||
W3LL PEOPLE is a clean beauty pioneer, raising the standard for high-performance, plant-powered, cruelty-free cosmetics since 2008. W3LL PEOPLE’s product-line includes 35+ EWG VERIFIED™ products, a leading standard of “clean and healthy” in the beauty space. | |||||
Keys Soulcare is a lifestyle beauty brand created with artist, producer, actress, and New York Times best-selling author Alicia Keys. With an inclusive point of view, an authentic voice and a line of skin-loving, dermatologist-developed, cruelty-free offerings, Keys Soulcare aims to bring new meaning to beauty by honoring ritual in our daily life and practicing intention in every action. |
$318 million | 65% | $6.2 million | $61 million | ||||||||
FY 2021 net sales | FY 2021 gross margin | FY 2021 net income | FY 2021 Adjusted EBITDA (1) | ||||||||
12% | 80 basis points | $0.12 | while continuing to invest in marketing and digital | ||||||||
YoY net sales growth | YoY gross margin growth | earnings per share | |||||||||
5.7% | 100 basis points | e.l.f. Cosmetics was the only top five color cosmetics brand to grow sales and market share. | #2 | ||||||||||||||
market share (2) | YoY market share growth | favorite teen brand (3) | |||||||||||||||
(1) | See Annex A for a reconciliation of net income to Adjusted EBITDA. | |||||||
(2) | According to Nielsen xAOC 52 weeks ending March 27, 2021. | |||||||
(3) | According to the Piper Sandler 41st Semi-Annual Taking Stock With Teens® Survey, Spring 2021. Up from #4 a year ago. |
2021 Proxy Statement | 44 |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
No increase in base salaries or annual cash incentive targets. | Cash incentive compensation tied solely to profitability. | Majority of compensation is variable, at-risk, and in equity. | Granted performance-based equity awards to all executive officers. | Adopted executive stock ownership policy and clawback policy. | ||||||||||||||||||||||||||||||||||
45 | 2021 Proxy Statement |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
2021 Proxy Statement | 46 |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
What We Heard | è è è | What We Did | ||||||||||||||||||
Executives, other than our Chief Executive Officer, were not issued equity awards with performance-based vesting conditions. | We expanded the use of equity awards with performance-based vesting conditions to all of our executive officers in FY 2021. | |||||||||||||||||||
The equity awards with performance-based vesting conditions that we issued to our Chief Executive Officer in FY 2020 were tied to stock price, which may be driven by external stock market movements and may not be relative to category or peer performance. | The equity awards with performance-based vesting conditions granted to all of our executive officers in FY 2021 included a relative performance metric that was tied to share growth in the color cosmetics category (as reported by Nielsen). | |||||||||||||||||||
We did not have certain risk mitigation policies in place, such as a compensation clawback policy or an executive stock ownership policy. | We implemented a compensation clawback policy and an executive stock ownership policy in FY 2021. | |||||||||||||||||||
Attract and Retain Talent | Align with Stockholders | Pay-for-Performance | ||||||
Attract, motivate, and retain highly talented and experienced executive officers who drive our success. | Align our executive officers’ incentives with the long-term interests of our stockholders. | Reward our executive officers for their performance and motivate them to achieve our short- and long-term and strategic and financial goals. | ||||||
What We Do | What We Don’t Do | |||||||||||||||||||||||||
ü | ||||||||||||||||||||||||||
We believe in at-risk. | û | We don’t guarantee annual salary increases or minimum cash bonuses. | ||||||||||||||||||||||||
ü | We heavily weight total compensation toward equity compensation to align our executive officers’ and our stockholders’ interests. | û | We don’t modify our performance targets during the performance period. | |||||||||||||||||||||||
ü | û | We don’t have pension plans or executive-only benefit or retirement plans. | ||||||||||||||||||||||||
ü | We hold annual “say-on-pay” advisory votes. | û | We don’t provide excise tax gross ups. | |||||||||||||||||||||||
ü | û | We don’t provide excessive perquisites to our executive officers. | ||||||||||||||||||||||||
ü | We maintain a compensation recovery (clawback) policy in the event of a financial restatement or fraud. | û | We don’t permit hedging or pledging of our stock. | |||||||||||||||||||||||
ü | We engage an independent compensation consultant to advise the Compensation | û | We don’t grant discount options. | |||||||||||||||||||||||
role | responsibilities and other relevant information | |||||||
Compensation Committee | • | Reviews and approves individual executive compensation decisions, including compensation for each of our executive officers (including our Chief Executive Officer), and new hire packages and employment agreements for new executive officers. | ||||||
• | Evaluates and manages our executive compensation philosophy and programs, overseeing decisions regarding specific equity-based compensation plans, programs, and grants. | |||||||
• | Reviews, at least annually, the selection of companies in our peer group to determine the competitiveness of executive officer and non-employee director compensation programs. | |||||||
role | responsibilities and other relevant information | |||||||
• | Conducts annual reviews and approves (or, if applicable, makes recommendations to our board of directors regarding the adoption and approval of) our cash-based and equity-based incentive compensation plans and arrangements for our executive officers and non-employee directors. | |||||||
Management | Chief Executive Officer | |||||||
• | Reviews and makes recommendations regarding the salary, short-term incentive compensation targets, and other compensation for our executive officers (other than himself). | |||||||
Chief People Officer | ||||||||
• | Assists the Compensation Committee in fulfilling its responsibilities by providing advice on compensation best practices, information regarding attrition and retention at | |||||||
Compensation consultants | • | The Compensation Committee has engaged Radford, an independent compensation | ||||||
• | Radford reports directly to the Compensation Committee and does not provide any non-compensation related services to | |||||||
• | Based on an assessment of the six independence factors established by the SEC, the Compensation Committee determined that the engagement of Radford does not raise any conflicts of interest or similar concerns. | |||||||
• | In addition, the Compensation Committee evaluated the independence of its other outside advisers, including outside legal counsel, considering the same independence factors and concluded their work for the Compensation Committee does not raise any conflicts of interest. |
Benefitfocus | Lifetime Brands | ||||||||||||||||
Chuy’s | Movado Group | ||||||||||||||||
Shutterstock | ZAGG | ||||||||||||||||
PetMed Express (1) | Stamps.com |
(1) | Added in FY 2021 to | ||||||||||||||||
* | Wageworks and Nutrisystem were removed from the peer group as both companies were acquired. Natural Health Trends and Nautilus were removed from the peer group as they fell significantly outside one or more of the approved selection criteria. |
Base | Annual Cash Incentive | Long-Term Incentive | ||||||
Cash | Cash | Equity | ||||||
Fixed | Variable/At-risk | Variable/At-risk | ||||||
Provides a | ||||||||
Rewards achievement of | ||||||||
Rewards creation of long-term stockholder value. | ||||||||
(1) | Comprised of base salary (at the annual rate in effect) for FY | |||||||
FY 2021 Annual Base Salaries | |||||||||||
name | base salary | ||||||||||
Tarang Amin | $ | 475,000 | |||||||||
Rich Baruch | $ | 325,000 | |||||||||
Mandy Fields | $ | 350,000 | |||||||||
Kory Marchisotto | $ | 325,000 | |||||||||
Scott Milsten | $ | 325,000 |
FY 2020 annual base salaries | |||||
name | base salary (1) | ||||
Tarang Amin | $ | 475,000 | |||
Rich Baruch | $ | 325,000 | |||
Mandy Fields | $ | 350,000 | |||
Josh Franks | $ | 325,000 | |||
Scott Milsten | $ | 325,000 | |||
(1) | The base salaries for our named executive officers (other than Ms. Fields and Mr. Franks) for 2019T were, on an annualized basis, the same as their respective base salaries for FY 2020. |
Base salary | x | Target percentage | x | Funding percentage | = |
ç | performance by the company of predetermined financial measures | è | ç | performance of predetermined financial measures | è | |||||||||||||||||||||
ß below threshold | threshold goal achieved | ßà in between goals | target goal achieved | ßà in between goals | maximum goal achieved | à above maximum | ß below threshold | threshold goal achieved | ßà in between goals | target goal achieved | ßà in between goals | maximum goal achieved | à above maximum | |||||||||||||
â | corresponds to a funding percentage of: | â | â | corresponds to a funding percentage of: | â | |||||||||||||||||||||
0% no funding | 80% | 81% to 99% on a linear basis | 100% | 101% to 199% on a linear basis | 200% | 200% maximum cap | 0% no funding | 80% | 81% to 99% on a linear basis | 100% | 101% to 199% on a linear basis | 200% | 200% maximum cap | |||||||||||||
ç | funding percentage of the annual cash incentive compensation pool | è | ç | funding percentage of the annual cash incentive compensation pool | è |
FY 2021 Target Annual Cash Incentive Opportunities | |||||||||||||||||
name | target (% of salary) | target value | |||||||||||||||
Tarang Amin | 100 | % | $ | 475,000 | |||||||||||||
Rich Baruch | 40 | % | $ | 130,000 | |||||||||||||
Mandy Fields | 50 | % | $ | 175,000 | |||||||||||||
Kory Marchisotto | 40 | % | $ | 130,000 | |||||||||||||
Scott Milsten | 40 | % | $ | 130,000 |
FY 2020 target annual cash incentive opportunities | ||||||||
name | target (% of salary) | target value (1) | ||||||
Tarang Amin | 100 | % | $ | 475,000 | ||||
Rich Baruch | 40 | % | $ | 130,000 | ||||
Mandy Fields | 50 | % | $ | 175,000 | ||||
Josh Franks | 40 | % | $ | 32,055 | ||||
Scott Milsten | 40 | % | $ | 130,000 | ||||
(1) | Mr. Franks’ target value was pro-rated for the actual number of days Mr. Franks was employed in FY 2020. Ms. Fields’ target value was not pro-rated as she commenced employment with the Company in April 2020, the first month of FY 2020. |
2019T cash incentive payouts | ||||||||||||
name | target value (1) | actual payout (% of target) | actual payout | |||||||||
Tarang Amin | $ | 117,124 | 100 | % | $ | 117,124 | ||||||
Rich Baruch | $ | 32,055 | 100 | % | $ | 32,055 | ||||||
Scott Milsten | $ | 32,055 | 100 | % | $ | 32,055 | ||||||
(1) | Represents 100% of annual cash incentive compensation target, pro-rated for the length of 2019T (which was 90 days). |
53 | 2021 Proxy Statement |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
Board-approved budget 1H Adjusted EBITDA | + | Board-approved budget 2H Adjusted EBITDA | = | Target Adjusted EBITDA goal |
Adjusted EBITDA | |||||||||||||||
adj. EBITDA (1) | funding percentage (2) | ||||||||||||||
threshold | $ | 80 | % | ||||||||||||
target | $ | 100 | % | ||||||||||||
maximum | $ | 200 | % | ||||||||||||
(1) | After funding of the annual cash incentive compensation pool. See Annex A for a reconciliation of net income to Adjusted EBITDA. | ||||||||||||||
(2) | The funding percentages correspond, on a linear basis, to performance between threshold and target levels and performance between target and maximum levels. |
2021 Proxy Statement | 54 |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
FY 2020 annual cash incentive payouts—2019T additional pool | ||||||||||||
name | target value (1) | actual payout (% of target) (1) | actual payout | |||||||||
Tarang Amin | $ | 117,124 | 100 | % | $ | 117,124 | ||||||
Rich Baruch | $ | 32,055 | 100 | % | $ | 32,055 | ||||||
Scott Milsten | $ | 32,055 | 100 | % | $ | 32,055 | ||||||
(1) | Represents the portion for which eligibility was tied to employment in 2019T as discussed above. Percentage is equivalent to 25% of the annual cash incentive target on a pro-rated basis (based on the length of 2019T (90 days)). |
FY 2020 annual cash incentive payouts—FY 2020 pool | |||||||||||||||||||||||||||||||||||
FY 2021 Annual Cash Incentive Payouts | FY 2021 Annual Cash Incentive Payouts | ||||||||||||||||||||||||||||||||||
name | name | target value | actual payout (% of target) | actual payout | name | target value | actual payout (% of target) | actual payout | |||||||||||||||||||||||||||
Tarang Amin | Tarang Amin | $ | 475,000 | 200 | % | $ | 950,000 | Tarang Amin | $ | 475,000 | 200 | % | $ | 950,000 | |||||||||||||||||||||
Rich Baruch | Rich Baruch | $ | 130,000 | 200 | % | $ | 260,000 | Rich Baruch | $ | 130,000 | 200 | % | $ | 260,000 | |||||||||||||||||||||
Mandy Fields | Mandy Fields | $ | 175,000 | 200 | % | $ | 350,000 | Mandy Fields | $ | 175,000 | 200 | % | $ | 350,000 | |||||||||||||||||||||
Josh Franks | $ | 32,055 | 200 | % | $ | 64,110 | |||||||||||||||||||||||||||||
Kory Marchisotto | Kory Marchisotto | $ | 130,000 | 200 | % | $ | 260,000 | ||||||||||||||||||||||||||||
Scott Milsten | Scott Milsten | $ | 130,000 | 200 | % | $ | 260,000 | Scott Milsten | $ | 130,000 | 200 | % | $ | 260,000 |
55 | 2021 Proxy Statement |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
Annual Equity Award Grant Dates | |||||||||||
year-end earnings release date(1) | grant date | ||||||||||
February 27, 2018 | March 1, 2018 | ||||||||||
February 26, 2019 | March 1, 2019 | ||||||||||
May 21, 2020 | June 1, 2020 | ||||||||||
May 26, 2021 | June 1, 2021 | ||||||||||
(1) | The shift in our year-end earnings release date is a result of the change in our fiscal year-end in 2018 from December 31 to March 31. |
Mr. Amin’s 2019T PSAs | ||||||
number of PSAs | stock price hurdle (1) | stock price hurdle as a percentage of stock price on the grant date (2) | time-based vesting period | |||
80,710 | $12.00 | 151 | % | 18 months after stock hurdle is met | ||
80,710 | $15.00 | 189 | % | 18 months after stock hurdle is met | ||
80,710 | $18.00 | 226 | % | 18 months after stock hurdle is met | ||
(1) | Met if the average closing price per share of the Company’s common stock equals or exceeds the stock price hurdle for a period of 20 trading days. | |||||
(2) | The closing price of our common stock on March 1, 2019 was $7.95 per share (as reported on the NYSE). |
2019T and FY 2020 equity awards | ||||||||||||||||||||||||||||||||||||
FY 2021 Equity Awards | FY 2021 Equity Awards | |||||||||||||||||||||||||||||||||||
name | name | type of award | shares | grant date fair value (1) | vesting terms | name | type of award | shares (1) | grant date fair value (2) | vesting terms (3) | ||||||||||||||||||||||||||
Tarang Amin | Tarang Amin | Annual PSA | 80,710 | $ | 602,904 | $12 hurdle plus 18 months service-based vesting after hurdle is met | Tarang Amin | Annual PSA | 119,400 | $ | 1,999,950 | Market share gain performance goal with service-based vesting until June 1, 2022 | ||||||||||||||||||||||||
Annual PSA | 80,710 | $ | 573,041 | $15 hurdle plus 18 months service-based vesting after hurdle is met | Annual RSA | 119,400 | $ | 1,999,950 | Four-year service-based vesting | |||||||||||||||||||||||||||
Rich Baruch | Rich Baruch | Annual PSA | 20,520 | $ | 343,710 | Market share gain performance goal with service-based vesting until June 1, 2022 | ||||||||||||||||||||||||||||||
Annual RSA | 61,560 | $ | 1,031,130 | Four-year service-based vesting | ||||||||||||||||||||||||||||||||
Mandy Fields | Mandy Fields | Annual PSA | 17,910 | $ | 299,993 | Market share gain performance goal with service-based vesting until June 1, 2022 | ||||||||||||||||||||||||||||||
Annual RSA | 53,730 | $ | 899,978 | Four-year service-based vesting | ||||||||||||||||||||||||||||||||
Kory Marchisotto | Kory Marchisotto | Annual PSA | 17,910 | $ | 299,993 | Market share gain performance goal with service-based vesting until June 1, 2022 | ||||||||||||||||||||||||||||||
Annual RSA | 53,730 | $ | 899,978 | Four-year service-based vesting | ||||||||||||||||||||||||||||||||
Scott Milsten | Scott Milsten | Annual PSA | 20,520 | $ | 343,710 | Market share gain performance goal with service-based vesting until June 1, 2022 | ||||||||||||||||||||||||||||||
Annual PSA | 80,710 | $ | 549,635 | $18 hurdle plus 18 months service-based vesting after hurdle is met | Annual RSA | 61,560 | $ | 1,031,130 | Four-year service-based vesting | |||||||||||||||||||||||||||
Annual restricted stock | 242,130 | $ | 1,924,934 | Four-year service-based vesting | ||||||||||||||||||||||||||||||||
Rich Baruch | Annual restricted stock | 93,390 | $ | 742,451 | Four-year service-based vesting | |||||||||||||||||||||||||||||||
Mandy Fields | New-hire stock option | 83,760 | $ | 402,643 | Four-year service-based vesting | |||||||||||||||||||||||||||||||
New-hire restricted stock | 130,930 | $ | 1,599,965 | Four-year service-based vesting | ||||||||||||||||||||||||||||||||
Josh Franks | New-hire stock option | 58,800 | $ | 349,895 | Four-year service-based vesting | |||||||||||||||||||||||||||||||
New-hire restricted stock | 63,700 | $ | 1,000,090 | Four-year service-based vesting | ||||||||||||||||||||||||||||||||
Scott Milsten | Annual restricted stock | 138,360 | $ | 1,099,962 | Four-year service-based vesting | |||||||||||||||||||||||||||||||
(1) | (1) | In order to compensate employees for the shift in the fiscal year-end in December 2018 and the resulting 15 month period between the equity awards granted on March 1, 2019 and the FY 2021 equity awards granted on June 1, 2020, the Compensation Committee decided to award to each employee (including our named executive officers) an equity award that was 5/4 of the target equity award, with the additional 1/4 pro-rated for the amount of time that an employee was employed by e.l.f. Beauty during the transition period from January 1, 2019 to March 31, 2019. As a result, the FY 2021 equity awards granted to Mr. Baruch and Mr. Milsten, who were employed during the transition period, were larger than the FY 2021 equity awards granted to Ms. Fields and Ms. Marchisotto, who were not employed during the transition period. |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
Represents the grant date fair value of the applicable equity awards granted to the named executive officer, calculated in accordance with FASB ASC Topic 718 for stock-based compensation transactions, disregarding the effects of estimated forfeitures. For a discussion of the valuation of these equity awards, see Notes to Consolidated Financial Statements at Note 14 in the | ||||||||||||||||||||||||||
(3) | The Compensation Committee determined in April 2021 that the market share gain performance goal for the PSAs was achieved. |
position | ownership requirement (multiple of base salary) | ||||
Chief Executive Officer | 6x | ||||
Other executive officers | 3x |
2021 Proxy Statement | 58 |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
59 | 2021 Proxy Statement |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
2021 Proxy Statement | 60 |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
61 | 2021 Proxy Statement |
name and principal position | name and principal position | year | salary (1) | bonus (1) | stock awards (2) | option awards (2) | non-equity incentive plan comp. (1) | all other comp. | total | name and principal position | year | salary | bonus | stock awards (1) | option awards (1) | non-equity incentive plan comp. | all other comp. | total | ||||||||||||||||||||||||||||||||||||||||||||||||||
Tarang Amin Chairman, Chief Executive Officer, and President | Tarang Amin Chairman, Chief Executive Officer, and President | 2020 | $ | 475,000 | — | — | — | $ | 1,067,123 | $ | 20,000 | (4) | $ | 1,562,123 | Tarang Amin Chairman, Chief Executive Officer, and President | 2021 | $ | 475,000 | — | $ | 3,999,900 | (2) | — | $ | 950,000 | $ | 24,019 | (3) | $ | 5,448,919 | ||||||||||||||||||||||||||||||||||||||
2019T | $ | 109,615 | $ | 117,124 | $ | 3,650,514 | (3) (5) | — | — | — | $ | 3,877,253 | 2020 | $ | 475,000 | — | — | — | $ | 1,067,123 | $ | 20,000 | $ | 1,562,123 | ||||||||||||||||||||||||||||||||||||||||||||
2018 | $ | 475,000 | — | $ | 5,247,021 | $ | 1,750,000 | — | $ | 20,000 | (4) | $ | 7,492,021 | 2019T | $ | 109,615 | $ | 117,124 | $ | 3,650,514 | (4) | — | — | — | $ | 3,877,253 | ||||||||||||||||||||||||||||||||||||||||||
2017 | $ | 475,000 | — | $ | 7,155,544 | $ | 2,269,160 | (6) | $ | 403,750 | $ | 20,000 | (4) | $ | 10,323,454 | 2018 | $ | 475,000 | — | $ | 5,247,021 | $ | 1,750,000 | — | $ | 20,000 | $ | 7,492,021 | ||||||||||||||||||||||||||||||||||||||||
Rich Baruch SVP and Chief Commercial Officer | Rich Baruch SVP and Chief Commercial Officer | 2020 | $ | 325,000 | — | — | — | $ | 292,055 | $ | 5,600 | (7) | $ | 622,655 | Rich Baruch SVP and Chief Commercial Officer | 2021 | $ | 325,000 | — | 1,374,840 | (2) | — | $ | 260,000 | $ | 6,450 | (5) | $ | 1,966,290 | |||||||||||||||||||||||||||||||||||||||
2019T | $ | 75,000 | $ | 32,055 | $ | 742,451 | (3) | — | — | $ | 1,500 | (7) | $ | 818,951 | 2020 | $ | 325,000 | — | — | — | $ | 292,055 | $ | 5,600 | $ | 622,655 | ||||||||||||||||||||||||||||||||||||||||||
2018 | $ | 325,000 | — | $ | 674,538 | $ | 220,686 | — | $ | 2,000 | (7) | $ | 1,254,279 | 2019T | $ | 75,000 | $ | 32,055 | $ | 742,451 | (4) | — | — | $ | 1,500 | $ | 851,006 | |||||||||||||||||||||||||||||||||||||||||
2017 | $ | 325,000 | — | $ | 1,299,056 | $ | 132,096 | (6) | $ | 110,500 | $ | 2,625 | (7) | $ | 1,869,277 | 2018 | $ | 325,000 | — | $ | 674,538 | $ | 220,686 | — | $ | 2,000 | $ | 1,222,224 | ||||||||||||||||||||||||||||||||||||||||
Mandy Fields SVP and Chief Financial Officer | Mandy Fields SVP and Chief Financial Officer | 2020 | $ | 323,077 | — | $ | 1,599,965 | $ | 402,643 | $ | 350,000 | $ | 5,923 | (7) | $ | 2,681,608 | Mandy Fields SVP and Chief Financial Officer | 2021 | $ | 350,000 | — | $ | 1,199,971 | (2) | — | $ | 350,000 | $ | 6,192 | (5) | $ | 1,906,163 | ||||||||||||||||||||||||||||||||||||
Josh Franks SVP, Operations | 2020 | $ | 71,250 | — | $ | 1,000,090 | $ | 349,895 | $ | 64,110 | $ | 1,250 | (7) | $ | 1,486,595 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Scott Milsten SVP, General Counsel, and Chief People Officer | 2020 | $ | 325,000 | — | — | — | $ | 292,055 | $ | 1,750 | (7) | $ | 618,805 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019T | $ | 75,000 | $ | 32,055 | $ | 1,099,962 | (3) | — | — | $ | 375 | (7) | $ | 1,207,392 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $ | 325,000 | — | $ | 1,499,096 | $ | 500,000 | — | $ | 5,500 | (7) | $ | 2,329,596 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | $ | 325,000 | — | $ | 1,626,504 | $ | 514,556 | (6) | $ | 110,500 | $ | 4,000 | (7) | $ | 2,580,560 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Mandy Fields SVP and Chief Financial Officer | Mandy Fields SVP and Chief Financial Officer | 2020 | $ | 323,077 | — | $ | 1,599,965 | $ | 402,643 | $ | 350,000 | $ | 5,923 | $ | 2,681,608 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | $ | 325,000 | — | $ | 1,199,971 | (2) | — | $ | 260,000 | $ | 6,450 | (5) | $ | 1,791,421 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Kory Marchisotto SVP and Chief Marketing Officer | Kory Marchisotto SVP and Chief Marketing Officer | 2020 | $ | 325,000 | — | — | — | $ | 281,014 | $ | 6,500 | $ | 612,514 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019T | $ | 23,750 | $ | 21,014 | $ | 1,012,830 | (4) | $ | 358,916 | $ | — | $ | 50,250 | $ | 1,466,760 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | $ | 325,000 | — | 1,374,840 | (2) | — | $ | 260,000 | $ | 5,188 | (5) | $ | 1,965,028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Scott Milsten SVP, General Counsel, Chief People Officer, and Corporate Secretary | Scott Milsten SVP, General Counsel, Chief People Officer, and Corporate Secretary | 2020 | $ | 325,000 | — | — | — | $ | 292,055 | $ | 1,750 | $ | 618,805 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019T | $ | 75,000 | $ | 32,055 | $ | 1,099,962 | (4) | — | — | $ | 375 | $ | 1,207,392 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2018 | $ | 325,000 | — | $ | 1,499,096 | $ | 500,000 | — | $ | 5,500 | $ | 2,329,596 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ms. Fields and Mr. Franks commenced employment with the Company in April 2019 and January 2020, respectively. Salary for Ms. Fields and Mr. Franks reflects the actual amount paid in FY 2020. Non-equity incentive plan compensation for Mr. Franks is pro-rated for the actual number of days Mr. Franks was employed in FY 2020. Non-equity incentive plan compensation for Ms. Fields was not pro-rated as she commenced employment with the Company in April 2020, the first month of FY 2020. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Represents the grant date fair value of the applicable equity awards granted to the named executive officer in the year indicated, calculated in accordance with FASB ASC Topic 718 for stock-based compensation transactions, disregarding the effects of estimated forfeitures. The grant date fair value of PSAs that vest based on a market condition is based the probable outcome of such condition based on a Monte Carlo simulation model; no maximum value applies. The Monte Carlo simulation model utilizes multiple input variables to estimate the probability of meeting the stock price hurdles established for the PSAs, including a term of 10 years, a risk-free interest rate of 2.74%, and an expected volatility of our stock price of 53.0%. For a discussion of the valuation of these equity awards, see Notes to Consolidated Financial Statements at Note 14 in the 2020 Annual Report. These amounts do not reflect the amount the named executive officer has actually realized or will realize from the equity awards upon the vesting thereof or the sale of the shares underlying such equity awards | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In 2018, the Company changed its fiscal year end from December 31 to March 31 (with FY 2020 running from April 1, 2019 to March 31, 2020 (and 2019T running from January 1, 2019 to March 31, 2019)). Due to SEC rules regarding disclosure of executive compensation, we are required to list Mr. Amin’s, Mr. Baruch’s, and Mr. Milsten’s equity awards granted on March 1, 2019 as compensation for 2019T. | Represents the grant date fair value of the applicable equity awards granted to the named executive officer in the year indicated, calculated in accordance with FASB ASC Topic 718 for stock-based compensation transactions, disregarding the effects of estimated forfeitures. For a discussion of the valuation of these equity awards, see Notes to Consolidated Financial Statements at Note 14 in the 2021 Annual Report. These amounts do not reflect the amount the named executive officer has actually realized or will realize from the equity awards upon the vesting thereof or the sale of the shares underlying such equity awards. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Represents reimbursement of financial planning and tax preparation assistance made pursuant to Mr. Amin’s employment agreement. | 50% of the value reported for Mr. Amin and 25% of the value reported for the other named executive officers is attributable to PSAs for which the performance goal was deemed probable to be achieved such that the amount reported assumes the highest level of performance. See under the heading “Executive Compensation—Executive Compensation Tables—Grants of Plan-Based Awards” for additional details regarding the vesting of these equity awards. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
50% of the restricted stock awards (based on total number of shares granted) are PSAs that vest in three equal portions on the date that is 18 months after the date that the average closing per share trading price of the Company’s common stock equals or exceeds $12, $15, and $18 for a period of 20 trading days, subject to Mr. Amin continuing to provide services to the Company through the applicable vesting date. See under the heading “executive compensation—executive compensation table—outstanding equity awards at fiscal year-end” for additional details regarding the vesting of these equity awards. | $20,000 represents reimbursement of financial planning and tax preparation assistance made pursuant to Mr. Amin’s employment agreement and $4,019 represents amount of matching contributions made by e.l.f. Beauty under its 401(k) plan. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The stock options vest and become exercisable in three equal tranches on the 30th consecutive trading day that the per share closing price of the Company’s common stock equals or exceeds $29, $33, and $36, subject to the named executive officer continuing to provide services to the Company through the applicable vesting date. See under the heading “executive compensation—executive compensation table—outstanding equity awards at fiscal year-end” for additional details regarding the vesting of these equity awards. | In 2018, we changed our fiscal year end from December 31 to March 31. Due to SEC rules regarding disclosure of executive compensation, we are required to list Mr. Amin’s, Mr. Baruch’s, Ms. Marchisotto’s, and Mr. Milsten’s equity awards granted on March 1, 2019 as compensation for 2019T. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Represents amount of matching contributions made by the Company under its 401(k) plan. | Represents amount of matching contributions made by e.l.f. Beauty under its 401(k) plan. |
62 |
estimated future payout under non-equity incentive plan awards (1) | estimated future payout under equity incentive plan awards (2) | all other stock awards: number of shares of stock or units | all other option awards: number of securities underlying options | exercise or base price of option awards | grant date fair value of stock and option awards (3) | |||||||||||||||||||||||||||||||||||||||
name | grant date | threshold | target | maximum | threshold (#) | target (#) | maximum (#) | |||||||||||||||||||||||||||||||||||||
Tarang Amin | — | $ | 380,000 | $ | 475,000 | $ | 950,000 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
6/1/2020 (4) | — | — | — | — | 119,400 | — | — | — | — | $ | 1,999,950 | |||||||||||||||||||||||||||||||||
6/1/2020 (5) | — | — | — | — | — | — | 119,400 | — | — | $ | 1,999,950 | |||||||||||||||||||||||||||||||||
Rich Baruch | — | $ | 104,000 | $ | 130,000 | $ | 260,000 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
6/1/2020 (4) | — | — | — | — | 20,520 | — | — | — | — | $ | 343,710 | |||||||||||||||||||||||||||||||||
6/1/2020 (5) | — | — | — | — | 61,560 | — | — | $ | 1,031,130 | |||||||||||||||||||||||||||||||||||
Mandy Fields | — | $ | 140,000 | $ | 175,000 | $ | 350,000 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
6/1/2020 (4) | — | — | — | — | 17,910 | — | — | — | — | $ | 299,993 | |||||||||||||||||||||||||||||||||
6/1/2020 (5) | — | — | — | — | — | — | 53,730 | — | — | $ | 899,978 | |||||||||||||||||||||||||||||||||
Kory Marchisotto | $ | 104,000 | $ | 130,000 | $ | 260,000 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
6/1/2020 (4) | — | — | — | — | 17,910 | — | — | — | — | $ | 299,993 | |||||||||||||||||||||||||||||||||
6/1/2020 (5) | — | — | — | — | — | — | 53,730 | — | — | $ | 899,978 | |||||||||||||||||||||||||||||||||
Scott Milsten | — | $ | 104,000 | $ | 130,000 | $ | 260,000 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
6/1/2020 (4) | — | — | — | — | 20,520 | — | — | — | — | $ | 343,710 | |||||||||||||||||||||||||||||||||
6/1/2020 (5) | — | — | — | — | — | — | 61,560 | — | — | $ | 1,031,130 | |||||||||||||||||||||||||||||||||
(1) | Amounts shown in these columns represent the range of possible cash payouts for each named executive officer with respect to annual cash incentive compensation for FY 2021, as determined by the Compensation Committee for FY 2021. For more information, see under the heading “Executive Compensation—Compensation Discussion and Analysis—Compensation Program Components—Annual Incentive Compensation”. | |||||||||||||||||||||||||||||||||||||||||||
(2) | Represents PSAs, which vest subject to the satisfaction of a market share performance goal as described in footnote 4. No threshold or maximum levels apply. | |||||||||||||||||||||||||||||||||||||||||||
(3) | Represents the grant date fair value of the applicable equity awards granted to the named executive officer in the year indicated, calculated in accordance with FASB ASC Topic 718 for stock-based compensation transactions, disregarding the effects of estimated forfeitures. For a discussion of the valuation of these equity awards, see Notes to Consolidated Financial Statements at Note 14 in the 2021 Annual Report. For PSAs, performance was deemed probable to be achieved. These amounts do not reflect the amount the named executive officer has actually realized or will realize from the equity awards upon the vesting thereof or the sale of the shares underlying such equity awards. | |||||||||||||||||||||||||||||||||||||||||||
(4) | The PSAs vest on June 1, 2022, subject to the named executive officer’s continued service through such vesting date, if e.l.f. Cosmetics’ share of the color cosmetics market as of March 21, 2021 (as reported by Nielsen xAOC) exceeds e.l.f. Cosmetics’ share of the color cosmetics market as of March 21, 2020 (as reported by Nielsen xAOC). The Compensation Committee determined in April 2021 that the market share gain performance goal was achieved. In the event of a change in control (as defined in the 2016 Equity Incentive Award Plan), the PSAs vest in full immediately prior to such change in control, subject to the named executive officer’s continued service through the closing of the change in control. | |||||||||||||||||||||||||||||||||||||||||||
(5) | The restricted stock awards vest in four substantially equal installments on the first four anniversaries of the date of the grant, subject to continued service through the applicable vesting date. |
estimated future payout under non-equity incentive plan awards (1) | estimated future payout under equity incentive plan awards (2) | all other stock awards: number of shares of stock or units | all other option awards: number of securities underlying options | exercise or base price of option awards | grant date fair value of stock and option awards (3) | ||||||||||||||||||||||||
name | grant date | threshold | target | maximum | threshold (#) | target (#) | maximum (#) | ||||||||||||||||||||||
Tarang Amin | — | $ | 473,698 | $ | 592,124 | $ | 1,067,123 | — | — | — | — | — | — | — | |||||||||||||||
3/1/2019 (4) | — | — | — | — | 80,710 | — | — | — | — | $ | 602,904 | ||||||||||||||||||
3/1/2019 (5) | — | — | — | — | 80,710 | — | — | — | — | $ | 573,041 | ||||||||||||||||||
3/1/2019 (6) | — | — | — | — | 80,710 | — | — | — | — | $ | 549,635 | ||||||||||||||||||
3/1/2019 (7) | — | — | — | — | — | — | 242,130 | — | — | $ | 1,924,934 | ||||||||||||||||||
Rich Baruch | — | $ | 129,644 | $ | 162,055 | $ | 292,055 | — | — | — | — | — | — | — | |||||||||||||||
3/1/2019 (7) | — | — | — | — | — | — | 93,390 | — | — | $ | 742,451 | ||||||||||||||||||
Mandy Fields | — | $ | 140,000 | $ | 175,000 | $ | 350,000 | — | — | — | — | — | — | — | |||||||||||||||
4/22/2019 (7) | — | — | — | — | — | — | — | 83,760 | $ | 12.22 | $ | 402,643 | |||||||||||||||||
4/22/2019 (8) | — | — | — | — | — | — | 130,930 | — | — | $ | 1,599,965 | ||||||||||||||||||
Josh Franks | — | $ | 25,644 | $ | 32,055 | $ | 64,110 | — | — | — | — | — | — | — | |||||||||||||||
1/2/2020 (7) | — | — | — | — | — | — | — | 58,800 | $ | 15.70 | $ | 349,895 | |||||||||||||||||
1/2/2020 (9) | — | — | — | — | — | — | 63,700 | — | — | $ | 1,000,090 | ||||||||||||||||||
Scott Milsten | — | $ | 129,644 | $ | 162,055 | $ | 292,055 | — | — | — | — | — | — | — | |||||||||||||||
3/1/2019 (7) | — | — | — | — | — | — | 138,360 | — | — | $ | 1,099,962 | ||||||||||||||||||
(1) | Amounts shown in these columns represent the range of possible cash payouts for each named executive officer with respect to annual cash incentive compensation for FY 2020, as determined by the Compensation Committee for FY 2020. For more information, see under the heading “executive compensation—compensation discussion and analysis—compensation program components—annual incentive compensation”. The threshold, target, and maximum for Mr. Franks is pro-rated for the actual number of days Mr. Franks was employed in FY 2020. The threshold, target, and maximum for Ms. Fields was not pro-rated as she commenced employment with the Company in April 2020, the first month of FY 2020. | ||||||||||||||||||||||||||||
(2) | Represents PSAs granted to Mr. Amin in 2019T, which vest subject to the satisfaction of certain stock price hurdles. No threshold or maximum levels apply. | ||||||||||||||||||||||||||||
(3) | Represents the grant date fair value of the applicable equity awards granted to the named executive officer in the year indicated, calculated in accordance with FASB ASC Topic 718 for stock-based compensation transactions, disregarding the effects of estimated forfeitures. For a discussion of the valuation of these equity awards, see Notes to Consolidated Financial Statements at Note 14 in the 2020 Annual Report. These amounts do not reflect the amount the named executive officer has actually realized or will realize from the equity awards upon the vesting thereof or the sale of the shares underlying such equity awards | ||||||||||||||||||||||||||||
(4) | The PSA vests 18 months after the date that the average closing per share trading price of the Company’s common stock equals or exceeds $12 for a period of 20 trading days, subject to continued service through such vesting date. | ||||||||||||||||||||||||||||
(5) | The PSA vests 18 months after the date that the average closing per share trading price of the Company’s common stock equals or exceeds $15 for a period of 20 trading days, subject to continued service through such vesting date. | ||||||||||||||||||||||||||||
(6) | The PSA vests 18 months after the date that the average closing per share trading price of the Company’s common stock equals or exceeds $18 for a period of 20 trading days, subject to continued service through such vesting date. | ||||||||||||||||||||||||||||
(7) | The stock options and restricted stock awards, as applicable, vest in four substantially equal installments on the first four anniversaries of the date of the grant, subject to continued service through the applicable vesting date. | ||||||||||||||||||||||||||||
(8) | The restricted stock award vests on the first four anniversaries of June 3, 2019, subject to continued service through the applicable vesting date. | ||||||||||||||||||||||||||||
(9) | The restricted stock award vests on the first four anniversaries of March 1, 2020, subject to continued service through the applicable vesting date. |
63 | 2021 Proxy Statement |
option awards | stock awards | option awards | stock awards | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
name | name | grant date | number of securities underlying unexercised options exercisable | number of securities underlying unexercised options unexercisable | equity incentive plan awards: number of securities underlying unexercised unearned options | option exercise price | option expiration date | number of shares or units of stock that have not vested | market value of shares or units that have not vested (1) | name | grant date | number of securities underlying unexercised options exercisable | number of securities underlying unexercised options unexercisable | equity incentive plan awards: number of securities underlying unexercised unearned options | option exercise price | option expiration date | number of shares or units of stock that have not vested | market value of shares or units that have not vested (1) | |||||||||||||||||||||||||||||||||||||||||
Tarang Amin | Tarang Amin | 1/31/2014 | 476,888 | — | — | $ | 1.84 | 1/31/2024 | — | — | Tarang Amin | 1/31/2014 | 476,888 | — | — | $ | 1.84 | 1/31/2024 | — | — | |||||||||||||||||||||||||||||||||||||||
9/21/2016 | 428,037 | — | — | $ | 17.00 | 9/21/2026 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
9/21/2016 (2) | 321,027 | 107,010 | — | $ | 17.00 | 9/21/2026 | 36,640 | $ | 360,538 | 2/14/2017 (2) | — | — | 213,000 | $ | 26.84 | 2/14/2027 | — | — | |||||||||||||||||||||||||||||||||||||||||
2/14/2017 (3) | — | — | 213,000 | $ | 26.84 | 2/14/2027 | — | — | 3/1/2018 (3) | 189,150 | 63,050 | — | $ | 18.43 | 3/1/2028 | 71,175 | $ | 1,909,625 | |||||||||||||||||||||||||||||||||||||||||
2/14/2017 (2) | — | — | — | — | — | 66,650 | $ | 655,836 | 3/1/2019 (3) | — | — | — | — | — | 121,064 | $ | 3,248,147 | ||||||||||||||||||||||||||||||||||||||||||
3/1/2018 (2) | 126,100 | 126,100 | — | $ | 18.43 | 3/1/2028 | 142,350 | $ | 1,400,724 | 3/1/2019 (4) | — | — | — | — | — | 80,710 | $ | 2,165,449 | |||||||||||||||||||||||||||||||||||||||||
3/1/2019 (2) | — | — | — | — | — | 181,597 | $ | 1,786,914 | 6/1/2020 (5) | — | — | — | — | — | 119,400 | $ | 3,203,502 | ||||||||||||||||||||||||||||||||||||||||||
3/1/2019 (4) | — | — | — | — | — | 242,130 | $ | 2,382,559 | 6/1/2020 (3) | — | — | — | — | — | 119,400 | $ | 3,203,502 | ||||||||||||||||||||||||||||||||||||||||||
Rich Baruch | Rich Baruch | 5/16/2014 | 307,920 | — | — | $ | 1.84 | 5/16/2024 | — | — | Rich Baruch | 5/16/2014 | 171,920 | — | — | $ | 1.84 | 5/16/2024 | — | — | |||||||||||||||||||||||||||||||||||||||
9/21/2016 (2) | 58,369 | 19,457 | $ | 17.00 | 9/21/2016 | 6,661 | $ | 65,544 | 9/21/2016 | 77,826 | — | $ | 17.00 | 9/21/2016 | — | — | |||||||||||||||||||||||||||||||||||||||||||
2/14/2017 (3) | — | — | 38,700 | $ | 26.84 | 2/14/2027 | — | — | 2/14/2017 (2) | — | — | 38,700 | $ | 26.84 | 2/14/2027 | — | — | ||||||||||||||||||||||||||||||||||||||||||
2/14/2017 (2) | — | — | — | — | — | 12,100 | $ | 119,064 | 3/1/2018 (3) | 24,300 | 8,100 | — | $ | 18.43 | 3/1/2028 | 9,150 | $ | 245,495 | |||||||||||||||||||||||||||||||||||||||||
3/1/2018 (2) | 16,200 | 16,200 | — | $ | 18.43 | 3/1/2028 | 18,300 | $ | 180,072 | 3/1/2019 (3) | — | — | — | — | — | 46,694 | $ | 1,252,800 | |||||||||||||||||||||||||||||||||||||||||
3/1/2019 (2) | — | — | — | — | — | 70,042 | $ | 689,213 | 6/1/2020 (5) | — | — | — | — | — | 20,520 | $ | 550,552 | ||||||||||||||||||||||||||||||||||||||||||
6/1/2020 (3) | — | — | — | — | — | 61,560 | $ | 1,651,655 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Mandy Fields | Mandy Fields | 4/22/2019 (2) | — | 83,760 | — | $ | 12.22 | 4/22/2029 | — | — | Mandy Fields | 4/22/2019 (3) | — | 62,820 | — | $ | 12.22 | 4/22/2029 | 98,197 | $ | 2,634,626 | ||||||||||||||||||||||||||||||||||||||
4/22/2019 (2) | — | — | — | — | — | 130,930 | $ | 1,288,351 | 6/1/2020 (5) | — | — | — | — | — | 17,910 | $ | 480,525 | ||||||||||||||||||||||||||||||||||||||||||
Josh Franks | 1/2/2020 (2) | — | 58,800 | — | $ | 15.70 | 1/2/2030 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
6/1/2020 (3) | — | — | — | — | — | 53,730 | $ | 1,441,576 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Kory Marchisotto | Kory Marchisotto | 3/1/2019 (3) | 28,775 | 57,550 | — | $ | 7.95 | 3/12029 | 63,700 | $ | 1,709,071 | ||||||||||||||||||||||||||||||||||||||||||||||||
6/1/2020 (5) | — | — | — | — | — | 17,910 | $ | 480,525 | |||||||||||||||||||||||||||||||||||||||||||||||||||
1/2/2020 (2) | — | — | — | — | — | 63,700 | $ | 626,808 | 6/1/2020 (3) | — | — | — | — | — | 53,730 | $ | 1,441,576 | ||||||||||||||||||||||||||||||||||||||||||
Scott Milsten | Scott Milsten | 1/31/2014 | 55,200 | — | — | $ | 1.84 | 1/31/2024 | — | — | Scott Milsten | 8/12/2015 | 175,139 | — | — | $ | 1.84 | 8/12/2025 | — | — | |||||||||||||||||||||||||||||||||||||||
8/12/2015 | 209,939 | — | — | $ | 1.84 | 8/12/2025 | — | — | 9/21/2016 | 97,281 | — | — | $ | 17.00 | 9/21/2026 | — | — | ||||||||||||||||||||||||||||||||||||||||||
9/21/2016 (2) | 72,960 | 24,321 | — | $ | 17.00 | 9/21/2026 | 8,327 | $ | 81,938 | 2/14/2017 (2) | — | — | 48,300 | $ | 26.84 | 2/14/2027 | — | — | |||||||||||||||||||||||||||||||||||||||||
2/14/2017 (3) | — | — | 48,300 | $ | 26.84 | 2/14/2027 | — | — | 3/1/2018 (3) | 54,000 | 18,000 | — | $ | 18.43 | 3/1/2028 | 20,335 | $ | 545,588 | |||||||||||||||||||||||||||||||||||||||||
2/14/2017 (2) | — | — | — | — | — | 15,150 | $ | 149,076 | 3/1/2019 (3) | — | — | — | — | — | 69,180 | $ | 1,856,099 | ||||||||||||||||||||||||||||||||||||||||||
3/1/2018 (2) | 36,000 | 36,000 | — | $ | 18.43 | 3/1/2028 | 40,670 | $ | 400,193 | 6/1/2020 (5) | — | — | — | — | — | 20,520 | $ | 550,552 | |||||||||||||||||||||||||||||||||||||||||
3/1/2019 (2) | — | — | — | — | — | 103,770 | $ | 1,021,097 | 6/1/2020 (3) | — | — | — | — | — | 61,560 | $ | 1,651,655 | ||||||||||||||||||||||||||||||||||||||||||
(1) | Represents the market value of restricted stock and shares underlying RSUs as of March 31, 2020, based on the closing price of our common stock on that date of $9.84 per share (as reported on the NYSE). | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Represents the market value of restricted stock and shares underlying RSUs and PSAs as of March 31, 2021, based on the closing price of our common stock on that date of $26.83 per share (as reported on the NYSE). | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(2) | Except as otherwise indicated, the stock options, RSUs, and shares of restricted stock, as applicable, vest in four substantially equal installments on the first four anniversaries of the date of the grant, subject to continued service through the applicable vesting date. Ms. Fields’ restricted stock award from April 22, 2019 vests on the first four anniversaries of June 3, 2019. Mr. Franks’ restricted stock award from January 2, 2020 vests on the first four anniversaries of March 1, 2020. | (2) | The stock options vest and become exercisable in three equal tranches on the 30th consecutive trading day that the per share closing price of our common stock equals or exceeds $29, $33, and $36, subject to the named executive officer’s continued service through the applicable vesting date. In the event of a change in control, if the per share consideration provided to our stockholders pursuant to such change in control equals or exceeds the applicable share price target for a tranche that has not previously or otherwise vested, then the stock options for that tranche vest in full immediately prior to such change in control, subject to the named executive officer’s continued service through the closing of the change in control. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The stock options vest and become exercisable in three equal tranches on the 30th consecutive trading day that the per share closing price of the Company’s common stock equals or exceeds $29, $33, and $36, subject to the named executive officer continuing to provide services to the Company through the applicable vesting date; provided that in the event of a change in control (as defined in the 2016 Equity Incentive Award Plan), if the per share consideration provided to the stockholders of the Company pursuant to such change in control equals or exceeds the applicable share price target for a tranche that has not previously or otherwise vested, then the stock options for that tranche vest in full immediately prior to such change in control, subject to continued service through the closing of the change in control. | (3) | Except as otherwise indicated, the stock options, RSUs, and shares of restricted stock, as applicable, vest in four substantially equal installments on the first four anniversaries of the date of the grant, subject to continued service through the applicable vesting date. Ms. Fields’ restricted stock award granted on April 22, 2019 vests on the first four anniversaries of June 3, 2019. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The PSAs vest in three equal portions on the date that is 18 months after the date that the average closing per share trading price of the Company’s common stock equals or exceeds $12, $15, and $18 for a period of 20 trading days, subject to Mr. Amin continuing to provide services to the Company through the applicable vesting date; provided that in the event of a change in control (as defined in the 2016 Equity Incentive Award Plan), if the per share consideration provided to the stockholders of the Company pursuant to such change in control equals or exceeds the applicable share price target for a tranche that has not previously or otherwise vested or if the applicable share price target for a tranche has already been achieved, then the PSAs for that tranche vest in full immediately prior to such change in control, subject to continued service by Mr. Amin through the closing of the change in control. The $12 stock price trigger was achieved on May 1, 2019 and the associated tranche will vest on November 1, 2020, subject to continued service by Mr. Amin through such date. The $15 stock price trigger was achieved on July 19, 2019 and the associated tranche will vest on January 19, 2021, subject to continued service by Mr. Amin through such date. The $18 stock price trigger was achieved on February 25, 2020 and the associated tranche will vest on August 25, 2021, subject to continued service by Mr. Amin through such date. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(4) | (4) | The PSAs vest on the date that is 18 months after the date that the average closing per share trading price of our common stock equals or exceeds $18 for a period of 20 trading days, subject to Mr. Amin’s continued service through the applicable vesting date; the $18 stock price hurdle was achieved on February 25, 2020 and the PSA will vest on August 25, 2021, subject to continued service by Mr. Amin through such date. In the event of a change in control, if the per share consideration provided to the stockholders of e.l.f. Beauty pursuant to such change in control equals or exceeds $18, then the PSAs vest in full immediately prior to such change in control, subject to Mr. Amin’s continued service through the closing of the change in control. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(5) | (5) | The PSAs vest on June 1, 2022, subject to the named executive officer’s continued service through such vesting date, if e.l.f. Cosmetics’ share of the color cosmetics market as of March 21, 2021 (as reported by Nielsen xAOC) exceeds e.l.f. Cosmetics’ share of the color cosmetics market as of March 21, 2020 (as reported by Nielsen xAOC). The Compensation Committee determined in April 2021 that the market share gain performance goal was achieved. In the event of a change in control, the PSAs vest in full immediately prior to such change in control, subject to the named executive officer’s continued service through the closing of the change in control. |
64 |
option awards | stock awards | ||||||||||||||||||||||||||||
name | number of shares acquired on exercise | value realized on exercise (1) | number of shares acquired on vesting | value realized on vesting (2) | |||||||||||||||||||||||||
Tarang Amin | — | — | 396,418 | $ | 9,394,354 | ||||||||||||||||||||||||
Rich Baruch | 136,000 | $ | 2,545,716 | 51,259 | $ | 1,290,420 | |||||||||||||||||||||||
Mandy Fields | 20,940 | $ | 287,001 | 32,733 | $ | 565,626 | |||||||||||||||||||||||
Kory Marchisotto | 28,775 | $ | 385,725 | 31,850 | $ | 866,320 | |||||||||||||||||||||||
Scott Milsten | 90,000 | $ | 2,137,956 | 78,402 | $ | 2,002,658 | |||||||||||||||||||||||
(1) | The value realized equals the difference between the fair market value of the common stock underlying the stock options at the time of exercise and the exercise price of the underlying options multiplied by the number of stock options exercised. | ||||||||||||||||||||||||||||
(2) | The value realized equals the fair market value of the common stock underlying the PSAs, RSUs or restricted stock award on the vesting date multiplied by the number of PSAs, RSUs or shares of restricted stock, as applicable, that vested. |
option awards | stock awards | |||||||||||||||
name | year | number of shares acquired on exercise | value realized on exercise (1) | number of shares acquired on vesting | value realized on vesting (2) | |||||||||||
Tarang Amin | 2020 | — | — | 234,998 | $ | 4,065,093 | ||||||||||
2019T | — | — | 137,825 | $ | 1,194,351 | |||||||||||
Rich Baruch | 2020 | 15,000 | $ | 240,510 | 51,260 | $ | 875,227 | |||||||||
2019T | — | — | 21,250 | $ | 186,846 | |||||||||||
Mandy Fields (3) | 2020 | — | — | — | — | |||||||||||
Josh Franks (3) | 2020 | — | — | — | — | |||||||||||
Scott Milsten | 2020 | — | — | 78,402 | $ | 1,322,787 | ||||||||||
2019T | — | — | 34,485 | $ | 304,528 | |||||||||||
(1) | The value realized equals the difference between the fair market value of the common stock underlying the stock options on the exercise date and the exercise price of the underlying options multiplied by the number of stock options exercised. | |||||||||||||||
(2) | The value realized equals the fair market value of the common stock underlying the RSUs or restricted stock on the vesting date multiplied by the number of RSUs or restricted stock, as applicable, that vested. | |||||||||||||||
(3) | Not employed with the Company in 2019T. |
65 | 2021 Proxy Statement |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
66 |
name | name | continued base salary | pro-rated annual cash incentive | continued benefits (1) | equity acceleration (2) | total | name | continued base salary | pro-rated annual cash incentive | continued benefits (1) | equity acceleration (2) | total | ||||||||||||||||||||||||||||||||||||||||||||
Tarang Amin | Tarang Amin | Tarang Amin | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
qualifying non-change in control termination | $ | 950,000 | $ | 1,067,123 | $ | 49,216 | — | $ | 2,066,339 | Qualifying non-change in control termination | $ | 950,000 | $ | 950,000 | $ | 51,161 | — | $ | 1,951,161 | |||||||||||||||||||||||||||||||||||||
termination due to death or disability | — | $ | 1,067,123 | — | — | $ | 1,067,123 | Termination due to death or disability | — | $ | 950,000 | — | — | $ | 950,000 | |||||||||||||||||||||||||||||||||||||||||
change in control with equity assumption or substitution | — | — | — | $ | 6,586,571 | $ | 6,586,571 | Change in control with equity assumption or substitution | — | — | — | $ | 14,259,846 | $ | 14,259,846 | |||||||||||||||||||||||||||||||||||||||||
change in control without equity assumption or substitution | — | — | — | $ | 6,586,571 | $ | 6,586,571 | Change in control without equity assumption or substitution | — | — | — | $ | 14,259,846 | $ | 14,259,846 | |||||||||||||||||||||||||||||||||||||||||
qualifying change in control termination | $ | 950,000 | $ | 1,067,123 | $ | 49,216 | $ | 6,586,571 | $ | 8,652,910 | Qualifying change in control termination | $ | 950,000 | $ | 950,000 | $ | 51,161 | $ | 14,259,846 | $ | 16,211,007 | |||||||||||||||||||||||||||||||||||
Rich Baruch | Rich Baruch | Rich Baruch | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
qualifying non-change in control termination | $ | 325,000 | $ | 292,055 | $ | 15,824 | — | $ | 632,879 | Qualifying non-change in control termination | $ | 325,000 | $ | 260,000 | $ | 16,462 | — | $ | 601,462 | |||||||||||||||||||||||||||||||||||||
termination due to death or disability | — | $ | 292,055 | — | — | $ | 292,055 | Termination due to death or disability | — | $ | 260,000 | — | — | $ | 260,000 | |||||||||||||||||||||||||||||||||||||||||
change in control with equity assumption or substitution | — | — | — | — | — | Change in control with equity assumption or substitution | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
change in control without equity assumption or substitution | — | — | — | $ | 988,349 | $ | 988,349 | Change in control without equity assumption or substitution | — | — | — | $ | 3,768,541 | $ | 3,768,541 | |||||||||||||||||||||||||||||||||||||||||
qualifying change in control termination | $ | 325,000 | $ | 292,055 | $ | 15,824 | $ | 988,349 | $ | 1,621,228 | Qualifying change in control termination | $ | 325,000 | $ | 260,000 | $ | 16,462 | $ | 3,768,541 | $ | 4,370,003 | |||||||||||||||||||||||||||||||||||
Mandy Fields | Mandy Fields | Mandy Fields | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
qualifying non-change in control termination | $ | 350,000 | $ | 350,000 | $ | 377 | — | $ | 700,377 | Qualifying non-change in control termination | $ | 350,000 | $ | 350,000 | $ | 373 | — | $ | 700,373 | |||||||||||||||||||||||||||||||||||||
termination due to death or disability | — | $ | 350,000 | — | — | $ | 350,000 | Termination due to death or disability | — | $ | 350,000 | — | — | $ | 350,000 | |||||||||||||||||||||||||||||||||||||||||
change in control with equity assumption or substitution | — | — | — | — | — | Change in control with equity assumption or substitution | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
change in control without equity assumption or substitution | — | — | — | $ | 1,288,351 | $ | 1,288,351 | Change in control without equity assumption or substitution | — | — | — | $ | 5,474,527 | $ | 5,474,527 | |||||||||||||||||||||||||||||||||||||||||
qualifying change in control termination | $ | 350,000 | $ | 350,000 | $ | 377 | $ | 1,288,351 | $ | 1,988,728 | Qualifying change in control termination | $ | 350,000 | $ | 350,000 | $ | 373 | $ | 5,474,527 | $ | 6,174,900 | |||||||||||||||||||||||||||||||||||
Josh Franks | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Kory Marchisotto | Kory Marchisotto | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
qualifying non-change in control termination | $ | 325,000 | $ | 64,110 | $ | 21,216 | — | $ | 410,326 | Qualifying non-change in control termination | $ | 325,000 | $ | 260,000 | $ | 23,261 | — | $ | 608,261 | |||||||||||||||||||||||||||||||||||||
termination due to death or disability | — | $ | 64,110 | — | — | $ | 64,110 | Termination due to death or disability | — | $ | 260,000 | — | — | $ | 260,000 | |||||||||||||||||||||||||||||||||||||||||
change in control with equity assumption or substitution | — | — | — | — | — | Change in control with equity assumption or substitution | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
change in control without equity assumption or substitution | — | — | — | $ | 626,808 | $ | 626,808 | Change in control without equity assumption or substitution | — | — | — | $ | 4,717,716 | $ | 4,717,716 | |||||||||||||||||||||||||||||||||||||||||
qualifying change in control termination | $ | 325,000 | $ | 64,110 | $ | 21,216 | $ | 626,808 | $ | 1,037,134 | Qualifying change in control termination | $ | 325,000 | $ | 260,000 | $ | 23,261 | $ | 4,717,716 | $ | 5,325,977 | |||||||||||||||||||||||||||||||||||
Scott Milsten | Scott Milsten | Scott Milsten | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
qualifying non-change in control termination | $ | 325,000 | $ | 292,055 | $ | 49,216 | — | $ | 666,271 | Qualifying non-change in control termination | $ | 325,000 | $ | 260,000 | $ | 51,161 | — | $ | 636,161 | |||||||||||||||||||||||||||||||||||||
termination due to death or disability | — | $ | 292,055 | — | — | $ | 292,055 | Termination due to death or disability | — | $ | 260,000 | — | — | $ | 260,000 | |||||||||||||||||||||||||||||||||||||||||
change in control with equity assumption or substitution | — | — | — | — | — | Change in control with equity assumption or substitution | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
change in control without equity assumption or substitution | — | — | — | $ | 1,652,303 | $ | 1,652,303 | Change in control without equity assumption or substitution | — | — | — | $ | 4,755,094 | $ | 4,755,094 | |||||||||||||||||||||||||||||||||||||||||
qualifying change in control termination | $ | 325,000 | $ | 292,055 | $ | 49,216 | $ | 1,652,303 | $ | 2,318,574 | Qualifying change in control termination | $ | 325,000 | $ | 260,000 | $ | 51,161 | $ | 4,755,094 | $ | 5,391,255 | |||||||||||||||||||||||||||||||||||
| Assumes that the named executive officer elected to receive COBRA premiums for himself or herself and his or her eligible dependents for the applicable post-termination period based on his or her benefit plan participation as of March 31, 2021. As of March 31, 2021, Ms. Fields was only enrolled in our vision health insurance plans and not enrolled in our medical health insurance plan. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) | Assumes that the named executive officer elected to receive COBRA premiums for himself or herself and his or her eligible dependents for the applicable post-termination period. Ms. Fields is only enrolled in our dental and vision health insurance plans and not currently enrolled in our medical health insurance plan. |
67 | 2021 Proxy Statement |
(2) | Represents (i) for accelerated RSUs, PSAs, and time-vesting restricted stock awards, the market value of time-vesting restricted stock and PSAs and shares underlying RSUs as of March 31, |
2021 Proxy Statement | 68 |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
plan category | number of securities to be issued upon exercise of outstanding options, warrants and rights (a) | weighted-average exercise price of outstanding options, warrants and rights (b) (1) | number of securities remaining available for future issuance under equity compensation plans (c) (2) | ||||||||||||||||||||
Equity Compensation Plans Approved by Stockholders | 5,039,188 | (3) | $ | 12.38 | 10,990,312 | (4) (5) | |||||||||||||||||
Equity Compensation Plans Not Approved by Stockholders | — | — | — | ||||||||||||||||||||
TOTAL | 5,039,188 | (3) | $ | 12.38 | 10,990,312 | (4) (5) | |||||||||||||||||
(1) | The calculation of the weighted-average exercise price of the outstanding stock options and rights excludes the shares of common stock included in column (a) that are issuable upon the vesting of then-outstanding RSUs, PSAs, and restricted stock awards because those types of equity awards have no exercise price. | ||||||||||||||||||||||
(2) | Excludes securities reflected in column (a). | ||||||||||||||||||||||
(3) | Consists of (i) 2,749,573 shares of common stock underlying outstanding options, (ii) 1,099,295 shares of common stock underlying outstanding RSUs, and (iii) 1,190,320 shares of restricted stock awards and PSAs. | ||||||||||||||||||||||
(4) | The 2016 Equity Incentive Award Plan (as amended) contains an “evergreen” provision, pursuant to which the number of shares of common stock reserved for issuance pursuant to awards under such plan shall be increased on the first day of each calendar year ending in 2026, equal to the lesser of (i) 2% of the shares of stock outstanding on the last day of the immediately preceding calendar year and (ii) such smaller number of shares of common stock as determined by our Board; provided, however, that no more than 22,627,878 shares of common stock may be issued upon the exercise of incentive stock options. The 2016 Employee Stock Purchase Plan contains an “evergreen” provision, pursuant to which the number of shares of common stock reserved for issuance under such plan shall be increased on the first day of each calendar year in 2026, equal to the lesser of (i) 1% of the shares of common stock outstanding on the last day of the immediately preceding calendar year and (ii) such smaller number of shares of common stock as determined by our Board; provided, however, no more than 6,788,363 shares of common stock may be issued under the 2016 Employee Stock Purchase Plan, subject to certain adjustments. | ||||||||||||||||||||||
(5) | Includes 3,322,422 shares that were available for future issuance as of March 31, 2021 under the 2016 Employee Stock Purchase Plan, which allows eligible employees to purchase shares of common stock with accumulated payroll deductions. The 2016 Employee Stock Purchase Plan, however, has not been implemented. |
plan category | number of securities to be issued upon exercise of outstanding options, warrants and rights (a) | weighted-average exercise price of outstanding options, warrants and rights (b) (1) | number of securities remaining available for future issuance under equity compensation plans (c) (2) | ||||||||
Equity Compensation Plans Approved by Stockholders | 5,564,253 | (3) | $ | 11.16 | 9,966,635 | (4) (5) | |||||
Equity Compensation Plans Not Approved by Stockholders | — | — | — | ||||||||
TOTAL | 5,564,253 | (3) | $ | 11.16 | 9,966,635 | (4) (5) | |||||
(1) | The calculation of the weighted-average exercise price of the outstanding stock options and rights excludes the shares of common stock included in column (a) that are issuable upon the vesting of then-outstanding RSUs and restricted stock awards because RSUs and restricted stock have no exercise price. | ||||||||||
(2) | Excludes securities reflected in column (a). | ||||||||||
(3) | Consists of (i) 3,252,485 shares of common stock underlying outstanding options, (ii) 1,124,979 shares of common stock underlying outstanding RSUs, and (iii) 1,128,789 shares of restricted stock awards. | ||||||||||
(4) | The 2016 Equity Incentive Award Plan contains an “evergreen” provision, pursuant to which the number of shares of common stock reserved for issuance pursuant to awards under such plan shall be increased on the first day of each calendar year beginning in 2017 and ending in 2026, equal to the lesser of (i) 4% of the shares of stock outstanding on the last day of the immediately preceding calendar year (starting in calendar year 2021, this reduces to 2% of the shares of stock outstanding on the last day of the immediately preceding calendar year) and (ii) such smaller number of shares of common stock as determined by our Board; provided, however, that no more than 22,627,878 shares of common stock may be issued upon the exercise of incentive stock options. The 2016 Employee Stock Purchase Plan contains an “evergreen” provision, pursuant to which the number of shares of common stock reserved for issuance under such plan shall be increased on the first day of each calendar year beginning in 2017 and ending in 2026, equal to the lesser of (i) 1% of the shares of common stock outstanding on the last day of the immediately preceding calendar year and (ii) such smaller number of shares of common stock as determined by our Board; provided, however, no more than 6,788,363 shares of common stock may be issued under the 2016 Employee Stock Purchase Plan, subject to certain adjustments. | ||||||||||
(5) | Includes 2,322,861 shares that were available for future issuance as of March 31, 2020 under the 2016 Employee Stock Purchase Plan, which allows eligible employees to purchase shares of common stock with accumulated payroll deductions. The 2016 Employee Stock Purchase Plan, however, has not been implemented. |
name of beneficial holder | total beneficial ownership (#) | total beneficial ownership (%) (1) | ||||
greater than 5% stockholder: | ||||||
Tarang Amin (2) | 5,888,846 | 11.5 | % | |||
TPG Growth II Advisors, Inc. (3) | 3,676,418 | 7.3 | % | |||
Champlain Investment Partners, LLC (4) | 3,644,615 | 7.2 | % | |||
The Vanguard Group, Inc. (5) | 3,082,137 | 6.1 | % | |||
Marathon Partners Equity Management, LLC (6) | 2,595,200 | 5.1 | % | |||
named executive officers and directors: | ||||||
Tarang Amin (2) | 5,888,846 | 11.5 | % | |||
Rich Baruch (7) | 541,100 | 1.1 | % | |||
Mandy Fields (8) | 183,520 | * | ||||
Josh Franks (9) | 75,780 | * | ||||
Scott Milsten (10) | 653,010 | 1.3 | % | |||
Lori Keith | — | * | ||||
Lauren Cooks Levitan (11) | 66,770 | * | ||||
Richelle Parham (12) | 22,804 | * | ||||
Kirk Perry (13) | 54,313 | * | ||||
Beth Pritchard (14) | 25,194 | * | ||||
Sabrina Simmons (15) | 57,981 | * | ||||
Maureen Watson (16) | 57,080 | * | ||||
Richard Wolford (17) | 71,273 | * | ||||
executive officers and directors as a group (14) (18) | 7,868,532 | 15.0 | % | |||
* | Represents ownership of less than 1% of the total outstanding shares of common stock. | |||||
(1) | Based on 50,439,340 shares of common stock outstanding as of the date indicated above. | |||||
(2) | Consists of (i) 799,166 shares of common stock (including restricted stock awards) held by Mr. Amin, (ii) 924,015 stock options held by Mr. Amin that are exercisable within 60 days of the date indicated above, (iii) 0 RSUs held by Mr. Amin that will vest within 60 days of the date indicated above, and (iv) 4,165,665 shares of common stock held by various family trusts for which Mr. Amin and his wife serve as co-trustees and over which they each have sole investment and voting power. The figure above does not include PSAs granted on June 1, 2020 that vest based upon performance metrics, which will be reported in connection with achievement. |
name of beneficial holder | total beneficial ownership (#) | total beneficial ownership (%) (1) | ||||||||||||
Greater than 5% stockholder: | ||||||||||||||
BlackRock, Inc. (2) | 6,491,240 | 12.5 | % | |||||||||||
Tarang Amin (3) | 4,328,298 | 8.1 | % | |||||||||||
The Vanguard Group, Inc. (4) | 4,169,894 | 8.0 | % | |||||||||||
Champlain Investment Partners, LLC (5) | 3,700,843 | 7.1 | % | |||||||||||
Victory Capital Management Inc. (6) | 3,043,344 | 5.8 | % | |||||||||||
Named executive officers and directors: | ||||||||||||||
Tarang Amin (3) | 4,328,298 | 8.1 | % | |||||||||||
Rich Baruch (7) | 449,360 | * | ||||||||||||
Mandy Fields (8) | 123,671 | * | ||||||||||||
Kory Marchisotto (9) | 157,340 | * | ||||||||||||
Scott Milsten (10) | 510,386 | * | ||||||||||||
Lori Keith (11) | 8,682 | * | ||||||||||||
Lauren Cooks Levitan (12) | 69,744 | * | ||||||||||||
Kenny Mitchell (13) | 4,967 | * | ||||||||||||
Richelle Parham (14) | 30,278 | * | ||||||||||||
Kirk Perry (15) | 71,624 | * | ||||||||||||
Beth Pritchard (16) | 32,668 | * | ||||||||||||
Maureen Watson (17) | 48,764 | * | ||||||||||||
Richard Wolford (18) | 81,550 | * | ||||||||||||
Executive officers and directors as a group (14) (19) | 6,005,359 | 11.1 | % | |||||||||||
* | Represents ownership of less than 1% of the total outstanding shares of common stock. | |||||||||||||
(1) | Based on 52,132,517 shares of common stock outstanding as of the date indicated above. | |||||||||||||
(2) | Based on a Schedule 13G/A filed with the SEC on February 10, 2021 by BlackRock, Inc. (“BlackRock”). BlackRock is the beneficial owner of 6,491,240 shares of common stock, has sole voting power over 6,374,135 shares of common stock, has shared voting power of 0 shares of common stock, has sole dispositive power over 6,491,240 shares of common stock, and has shared dispositive power over 0 shares of common stock. BlackRock’s address is 55 East 52nd Street, New York, NY 10055. |
(3) | Consists of (i) 481,899 shares of common stock (including restricted stock awards) held by Mr. Amin, (ii) 1,094,075 stock options held by Mr. Amin that are exercisable within 60 days of the date indicated above, (iii) 0 RSUs held by Mr. Amin that will vest within 60 days of the date indicated above, (iv) 2,625,157 shares of common stock held by various family trusts for which Mr. Amin and his wife serve as co-trustees and over which they each have sole investment and voting power, and (v) 127,167 shares of common stock held in charitable foundations and donor advised funds over which Mr. Amin has sole investment and voting power. | |||||||||||||
(4) | Based on a Schedule 13G/A filed with the SEC on February | |||||||||||||
Based on a Schedule 13G/A filed with the SEC on February | ||||||||||||||
Based on a Schedule 13G filed with the SEC on February | ||||||||||||||
(7) | Consists of (i) | |||||||||||||
(8) | Consists of (i) | |||||||||||||
(9) | Consists of (i) | |||||||||||||
(10) | Consists of (i) | |||||||||||||
(11) | Consists of (i) | |||||||||||||
(12) | Consists of (i) 27,770 shares of common stock held by Ms. Cooks Levitan, (ii) 34,500 stock options held by Ms. Cooks Levitan that are exercisable within 60 days of the date indicated above (6,900 of the stock options are unvested but permit early exercise), and (iii) |
Consists of (i) | ||||||||||||||
(14) | Consists of (i) 22,804 shares of common stock held by Ms. Parham, (ii) 0 stock options held by Ms. Parham that are exercisable within 60 days of the date indicated above, and (iii) | |||||||||||||
Consists of (i) | ||||||||||||||
Consists of (i) | ||||||||||||||
Consists of (i) 4,227 shares of common stock held by Ms. Watson, (ii) 34,500 stock options held by Ms. Watson that are exercisable within 60 days of the date indicated above, and (iii) | ||||||||||||||
Consists of (i) | ||||||||||||||
Consists of (i) |
2021 Proxy Statement | 72 |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
73 | 2021 Proxy Statement |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
þ FOR | Our Board unanimously recommends a vote “FOR” the appointment of Deloitte as our independent registered public accounting firm for FY Our Board, based on the Audit Committee’s assessment of Deloitte’s qualifications and performance, believes the appointment of Deloitte for FY |
type of fees | FY 2021 | FY 2020 | 2019T | ||||||||||||||||||||
Audit Fees (1) | $ | 1,559,500 | $ | 985,000 | $ | 365,300 | |||||||||||||||||
Audit-Related Fees | — | — | — | ||||||||||||||||||||
Tax Fees (2) | $ | 20,413 | $ | 17,825 | $ | 8,320 | |||||||||||||||||
All Other Fees | — | — | — | ||||||||||||||||||||
Total | $ | 1,579,913 | $ | 1,002,825 | $ | 373,620 | |||||||||||||||||
(1) | Includes fees related to financial statement audit, quarterly reviews, registration statements, and China statutory audit. | ||||||||||||||||||||||
(2) | Includes fees related to general tax consulting, transfer pricing, and uniform capitalization services. |
type of fees | FY 2020 | 2019T | 2018 | ||||||||||
Audit Fees (1) | $ | 985,000 | $ | 365,300 | $ | 1,023,500 | |||||||
Audit-Related Fees (2) | — | — | $ | 112,432 | |||||||||
Tax Fees (3) | $ | 17,825 | $ | 8,320 | $ | 18,491 | |||||||
All Other Fees | — | — | — | ||||||||||
TOTAL FEES | $ | 1,002,825 | $ | 373,620 | $ | 1,154,423 | |||||||
(1) | Includes fees related to financial statement audit, quarterly reviews, registration statements, and China statutory audit. | ||||||||||||
(2) | For 2018, includes fees related to M&A due diligence services. | ||||||||||||
(3) | Includes fees related to general tax consulting, transfer pricing, and uniform capitalization services. |
2021 Proxy Statement | 76 |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
e.l.f. Beauty, Inc. ATTN: Investor Relations 570 10th Street Oakland, California 94607 | ||
2021 Proxy Statement | 80 |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
83 | 2021 Proxy Statement |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
2021 Proxy Statement | 84 |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
85 | 2021 Proxy Statement |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
proposal | classification | |||||||
1. | Election of | non-routine | ||||||
2. | Advisory vote on compensation for our named executive officers | non-routine | ||||||
3. | ||||||||
Ratification of appointment of Deloitte as our independent registered public accounting firm | routine |
2021 Proxy Statement | 86 |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
87 | 2021 Proxy Statement |
Intro | Board | Company | Exec. Comp. | Equity Plans | Stockholders | Audit | Add’l. Info | Q&A | Annexes |
three months ended March 31, 2018 | three months ended March 31, 2019 | twelve months ended March 31, 2019 | |||||||||
Net sales | $ | 65,920 | $ | 66,141 | $ | 267,656 | |||||
Net sales (e.l.f. retail stores) | $ | (3,338 | ) | $ | (1,856 | ) | $ | (12,001 | ) | ||
Net sales (excluding e.l.f. retail stores) | $ | 62,582 | $ | 64,285 | $ | 255,655 |
FY 2021 | |||||||||||
Net income | $ | 6,232 | |||||||||
Interest expense, net | $ | 4,090 | |||||||||
Income (benefit) tax provision | $ | (2,542) | |||||||||
Depreciation and amortization | $ | 21,078 | |||||||||
EBITDA | $ | 28,858 | |||||||||
Restructuring expense (1) | $ | 2,641 | |||||||||
Stock-based compensation | $ | 19,682 | |||||||||
Other non-cash and non-recurring costs (2) | $ | 9,897 | |||||||||
Adjusted EBITDA | $ | 61,078 | |||||||||
(1) | Restructuring expense during the year ended March 31, 2021 relates to the closure of our manufacturing plant, including impairment of plant assets, the disposal of excess inventory on hand at the plant; and the termination of manufacturing plant employees. | ||||||||||
(2) | Represents various non-cash or non-recurring costs, including proxy contest expenses, pre-launch costs to develop Keys Soulcare, acquisition-related costs for W3LL PEOPLE, and costs related to the automation of certain warehouse and distribution activities. |
twelve months ended March 31, 2019 | FY 2020 | ||||||||
Net (loss) income | $ | (3,079 | ) | $ | 17,884 | ||||
Interest expense, net | $ | 7,702 | $ | 6,307 | |||||
Income (benefit) tax provision | $ | (1,261 | ) | $ | 6,185 | ||||
Depreciation and amortization | $ | 24,093 | $ | 20,223 | |||||
EBITDA | $ | 27,455 | $ | 50,599 | |||||
Restructuring expense (income) (1) | $ | 16,859 | $ | (5,982 | ) | ||||
Stock-based compensation | $ | 16,864 | $ | 15,488 | |||||
Other non-cash and non-recurring costs (2) | $ | 1,261 | $ | 2,505 | |||||
Adjusted EBITDA | $ | 62,439 | $ | 62,610 | |||||
(1) | Represents restructuring expense (income) related to the e.l.f. retail store closures. Includes a gain related to settlement of outstanding lease liabilities equal to the difference between the amount of cash disbursed and the outstanding liability at the time of settlement. | ||||||||
(2) | Represents various non-cash or non-recurring costs, including costs related to the development or acquisition of new brands, including W3LL People in February 2020, as well as the automation of certain warehouse and distribution activities. |