Form 4: Nextdoor Grants 947,867 PSUs to Product President

Nextdoor Holdings, Inc. granted 947,867 performance stock units to Craig Lisowski, President of Products, contingent on stock price targets.

Summary

• Craig Lisowski, President of Products at Nextdoor Holdings, Inc. (NXDR), was granted 947,867 Performance Stock Units (PSUs).
• Each PSU represents a contingent right to receive one share of the Issuer's Class A Common Stock.
• The vesting of these PSUs is subject to the achievement of specific stock price targets for Nextdoor's Class A Common Stock.
• Vesting will occur in ratable tranches, each representing 25% of the total award.
• The performance measurement periods for these targets will span a four-year period, commencing on January 15, 2026, and concluding on January 15, 2030.
• Continued service to the Issuer by Mr. Lisowski through the date of certification of achievement is also a condition for vesting.
• If any tranche does not vest by the end of its applicable performance measurement period, the PSUs comprising that tranche will be forfeited for no consideration.

Sentiment

Score: 6

Explanation: The grant of performance-based stock units is generally positive as it aligns executive incentives with shareholder value creation, but it is a routine compensation event rather than a significant operational or financial announcement.

Positives

• The grant of performance-based stock units aligns the interests of a key executive, Craig Lisowski, with those of shareholders, as vesting is tied to the achievement of stock price targets.
• This compensation structure incentivizes long-term value creation and strategic performance within the company.

Negatives

• The PSUs do not represent immediate equity and are contingent on future performance, meaning there is no guaranteed value for the recipient until targets are met.
• The specific stock price targets and performance criteria are not detailed in the filing, limiting full transparency on the difficulty of achievement.

Risks

• There is a risk of forfeiture for the PSUs if the specified stock price targets are not achieved by the end of their respective performance measurement periods.
• The reporting person's continued service to the Issuer is required for vesting, posing a risk if employment ceases before certification.

Future Outlook

The future outlook for the granted PSUs is directly tied to Nextdoor's ability to achieve specific stock price targets over a four-year period from January 2026 to January 2030. This indicates a strategic focus on enhancing shareholder value through stock performance.

Management Comments

• The grant of Performance Stock Units to the President of Products signifies a commitment to aligning executive incentives with long-term company performance and shareholder returns.

Industry Context

This type of performance-based equity grant is a common practice in the technology and social networking industry for executive compensation. It aims to motivate leadership to drive growth and achieve market valuation milestones, similar to compensation structures seen at companies like Meta Platforms or Pinterest, where executive incentives are often tied to stock performance metrics.

Comparison to Industry Standards

• The use of Performance Stock Units (PSUs) with vesting contingent on stock price targets is a standard executive compensation practice across the technology sector, including companies like Meta Platforms, Snap Inc., and Pinterest.
• The four-year performance period is also a common duration for long-term incentive plans, designed to encourage sustained performance rather than short-term gains.
• The forfeiture clause for unvested tranches is typical for performance-based awards, ensuring that compensation is earned only upon the achievement of predefined goals.

Stakeholder Impact

• Shareholders: The performance-based nature of the PSUs aims to align executive interests with shareholder value, potentially leading to increased stock performance.
• Employees: The compensation structure for a key executive may set a precedent or reflect the company's overall approach to incentivizing performance.

Next Steps

• Nextdoor Holdings, Inc. will monitor the achievement of specified stock price targets for its Class A Common Stock over the performance periods from January 15, 2026, to January 15, 2030.
• The company will certify the achievement of these performance criteria to determine the vesting of the PSUs.

Key Dates

Keywords

Nextdoor Holdings, NXDR, Performance Stock Units, PSU, Executive Compensation, Insider Transaction, Stock Grant, Craig Lisowski, Class A Common Stock