Form 4: Marqeta Executive Randall F. Kern Awarded Stock Units

Randall F. Kern, Chief Product and Technology Officer at Marqeta, Inc., received restricted stock units and performance stock units on March 15, 2024.

Summary

• Randall F. Kern, a Marqeta, Inc. officer, was granted restricted stock units and performance stock units on March 15, 2024.
• He received 464,418 restricted stock units, which convert to Class A Common Stock.
• These restricted stock units vest in installments starting June 1, 2024, and continuing quarterly, contingent on continued service.
• Kern also received 139,325 performance stock units tied to gross profit targets and 59,711 performance stock units linked to adjusted EBITDA targets.
• These performance stock units also convert to Class A Common Stock and vest based on target achievement and continued service.
• Maximum achievement could result in 200% of the shares vesting.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The granting of stock units is a standard practice, but it indicates confidence in the executive's ability to contribute to the company's success and achieve performance targets.

Positives

• The granting of stock units aligns executive compensation with company performance and long-term value creation.
• Vesting schedules tied to continued service incentivize retention of key personnel.

Risks

• The value of the stock units is dependent on Marqeta's stock price and the achievement of performance targets.
• Failure to meet performance targets could result in fewer shares vesting.

Future Outlook

The vesting of the stock units is contingent upon continued service and the achievement of performance targets, suggesting an expectation of continued growth and profitability for Marqeta.

Industry Context

Granting stock options and performance-based equity is a common practice in the tech industry to incentivize executives and align their interests with those of shareholders. This is especially true for companies like Marqeta in the fintech space, where attracting and retaining top talent is crucial for innovation and growth.

Comparison to Industry Standards

• Companies like Block (formerly Square), PayPal, and Adyen also utilize stock-based compensation to incentivize their executives.
• The specific vesting schedules and performance metrics (gross profit, EBITDA) are tailored to Marqeta's business strategy and financial goals.
• Comparing the size of the grants relative to Kern's total compensation and Marqeta's overall equity pool would provide further context on whether the grants are in line with industry norms.

Stakeholder Impact

• Shareholders: The granting of stock units can align management's interests with shareholder value creation.
• Employees: The equity grants can boost morale and incentivize performance across the organization.

Key Dates