Form 4: Marqeta CFO Michael Milotich Awarded Stock Units

Marqeta's Chief Financial Officer, Michael Milotich, received restricted stock units and performance stock units convertible into Class A Common Stock.

Summary

• Michael Milotich, CFO of Marqeta, Inc., was granted restricted stock units (RSUs) and performance stock units (PSUs) on March 15, 2024.
• The RSUs total 597,109 and vest quarterly starting June 1, 2024, contingent upon continued service.
• The PSUs are tied to the achievement of gross profit and adjusted EBITDA targets, with 179,132 shares at target for gross profit and 76,771 shares at target for adjusted EBITDA.
• Maximum achievement could result in 200% of the target shares vesting for both PSU types.
• All stock units are convertible into Class A Common Stock.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, indicating stability and alignment of interests. The performance-based component is a positive signal.

Positives

• The granting of stock units aligns the CFO's interests with the company's performance and shareholder value.
• The vesting schedule encourages continued service and commitment from the CFO.
• Performance-based units incentivize the achievement of specific financial targets (gross profit and adjusted EBITDA).

Risks

• The actual number of shares vesting from the PSUs depends on the achievement of performance targets, which may not be met.
• The value of the stock units is subject to the market price of Marqeta's Class A Common Stock, which can fluctuate.

Future Outlook

The vesting of the stock units is contingent upon continued service and, for the PSUs, the achievement of specific performance targets related to gross profit and adjusted EBITDA.

Industry Context

Equity compensation is a common practice in the tech industry to attract, retain, and incentivize key executives. The use of performance-based units aligns executive compensation with company performance, a trend favored by shareholders.

Comparison to Industry Standards

• Companies like Block (formerly Square), PayPal, and Adyen also utilize stock options and restricted stock units as part of their executive compensation packages.
• The specific vesting schedules and performance metrics vary depending on the company's size, stage of growth, and strategic priorities.
• Performance-based equity awards are increasingly common, with metrics often tied to revenue growth, profitability, or other key performance indicators.

Stakeholder Impact

• Shareholders may view the performance-based equity awards positively, as they align executive compensation with company performance.
• Employees may see this as a positive sign of the company's commitment to its leadership team.

Key Dates