| Item 5.02 | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. |
Amendment and restatement of employment agreement with Chief Financial Officer
On November 6, 2018, Zillow Group, Inc. (“Zillow Group” or the “Company”) announced the appointment of Allen Parker as Zillow Group’s Chief Financial Officer, effective November 16, 2018, and the Company’s entry into an executive employment agreement with Mr. Parker in connection therewith (the “Original Employment Agreement”). On November 13, 2018, Zillow Group entered into an amended and restated executive employment agreement with Mr. Parker, effective November 16, 2018 (the “Amended Employment Agreement”).
The Amended Employment Agreement amends and restates in full the terms of the Original Employment Agreement, which are substantially similar to the terms of the Amended Employment Agreement, except that the Amended Employment Agreement modifies certain provisions related to Mr. Parker’s initial equity awards, as described below.
Pursuant to the Amended Employment Agreement, and subject to approval by the Zillow Group board of directors or compensation committee thereof, Mr. Parker will be eligible to receive the following initial equity awards granted under the Zillow Group, Inc. Amended and Restated 2011 Incentive Plan in connection with commencement of employment with the Company:
| (1) | restricted stock units for the number of shares of the Company’s Class C capital stock calculated by dividing $3,500,000.00 by the closing price of the Company’s Class C capital stock on the trading day immediately preceding Mr. Parker’s first day of employment (the “Initial RSUs”) (under the Original Employment Agreement, the size of the Initial RSUs was calculated by dividing $5,250,000.00 by the average closing price of the Company’s Class C capital stock for the thirty trading days preceding Mr. Parker’s first day of employment); and |
| (2) | a nonqualified stock option for the number of shares of the Company’s Class C capital stock underlying the Initial RSUs multiplied by three, which option will have a per share exercise price equal to the closing price of the Company’s Class C capital stock on the date of grant (the “Initial Option”) (under the Original Employment Agreement, the Initial Option was for the same number of shares as subject to the Initial RSUs). |
The vesting schedule for each of the Initial RSUs and the Initial Option remains the same under the Amended Employment Agreement, with twenty-five percent of the number of shares underlying each award vesting on theone-year anniversary of Mr. Parker’s first day of employment. The remainder of the shares underlying each award will vest in substantially equal quarterly installments over the subsequent twelve quarters, in each instance subject to continued employment with the Company.
The foregoing description of Mr. Parker’s Amended Employment Agreement is qualified in its entirety by reference to the full text of the agreement, a copy of which is attached as Exhibit 10.1 to this Current Report on Form8-K and incorporated herein by reference.
Forward-Looking Statements
This Current Report on Form8-K contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act that involve risks and uncertainties. Differences may result from actions taken by the Zillow Group board of directors, as well as from risks and uncertainties beyond the Company’s control. Additional factors which could cause results to differ materially from those anticipated in forward-looking statements can be found under the caption “Risk Factors” in Zillow Group, Inc.’s Quarterly Report on Form10-Q for the quarterly period ended September 30, 2018 filed with the Securities and Exchange Commission, or SEC, and in the Company’s other filings with the SEC. Except as may be required by law, Zillow Group does not intend, nor undertake any duty, to update this information to reflect future events or circumstances.
