Form 4: Marcus Lemonis Granted Stock Options in Beyond, Inc. Performance Award

Marcus Lemonis, Executive Chairman of Beyond, Inc., received a performance award consisting of stock options that vest upon achieving specific stock price hurdles and continued service.

Summary

• Marcus Lemonis, the Executive Chairman of the Board of Beyond, Inc., was granted stock options on February 20, 2024, as part of a performance award.
• The stockholder approval for this grant was received on May 21, 2024.
• The performance award consists of three tranches of stock options that vest only if certain stock price milestones are achieved and Lemonis continues to serve in a qualifying position.
• The first tranche includes 500,000 options that vest if the stock price reaches $45.00 between February 20, 2024, and February 20, 2026, but not before February 20, 2025.
• The second tranche includes 750,000 options that vest if the stock price reaches $50.00 between February 20, 2024, and February 20, 2027, but not before February 20, 2026.
• The third tranche includes 1,000,000 options that vest if the stock price reaches $60.00 between February 20, 2024, and February 20, 2028, but not before February 20, 2027.
• Vesting is contingent on Lemonis remaining in a qualifying position, such as Executive Chairman or Chairman of the Board, through the applicable vesting date.
• If the stock price hurdles are not met during the specified performance period for any tranche, the corresponding options will be forfeited.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive as the granting of performance-based stock options aligns management's interests with shareholder value and incentivizes long-term growth. However, the vesting is contingent on achieving specific stock price targets, which introduces some uncertainty.

Positives

• The performance-based vesting of the stock options aligns the interests of the Executive Chairman with the company's stock performance.
• The staggered vesting schedule incentivizes long-term value creation.

Negatives

• If the stock price targets are not met, the options will be forfeited, potentially leading to dissatisfaction if external factors hinder stock performance.
• The vesting is contingent on continued service, which could be a concern if there are potential changes in management or roles.

Risks

• Failure to achieve the stock price hurdles could result in the forfeiture of the stock options.
• Changes in the Executive Chairman's role or termination of service could impact vesting eligibility.
• Market conditions and external factors could affect the company's ability to reach the stock price targets.

Future Outlook

The vesting of the stock options is contingent on the company's stock price performance and the Executive Chairman's continued service, indicating a focus on long-term growth and stability.

Industry Context

Performance-based compensation is a common practice in the industry to align management's interests with shareholder value. The specific stock price hurdles suggest a targeted growth strategy for Beyond, Inc.

Comparison to Industry Standards

• Many companies use stock options as part of their executive compensation packages.
• The vesting schedules and performance metrics vary widely depending on the company's size, industry, and strategic goals.
• For example, companies like Tesla and Amazon have used ambitious stock price targets to incentivize their executives.
• The specific hurdles of $45, $50, and $60 would need to be compared to Beyond, Inc.'s current stock price and growth potential to assess their difficulty.

Stakeholder Impact

• Shareholders may view the performance-based compensation positively as it aligns management's interests with stock performance.
• Employees may be motivated by the potential for company growth and increased stock value.
• The vesting conditions could influence management decisions and strategic direction.

Key Dates