8-K: RumbleOn Appoints Tiffany Kice as New Chief Financial Officer

RumbleOn, Inc. has appointed Tiffany Kice as its new Chief Financial Officer, effective June 24, 2024, bringing extensive experience in financial leadership and multi-site retail.

Summary

• RumbleOn, Inc. has announced the appointment of Tiffany Kice as its new Chief Financial Officer, effective June 24, 2024.
• Ms. Kice has over 25 years of experience in financial leadership roles, including positions at Pegasus Logistics Group, The Beneficient Company Group, Westwood Holdings Group, and CEC Entertainment.
• Her compensation includes an annual base salary of $385,000, a 75% target bonus, a $25,000 signing bonus, and grants of restricted stock units.
• The restricted stock units include a one-time grant of time-based units worth $50,000 and a one-time grant of time and performance-based units equal to 75% of her pro-rated annual base salary for 2024.
• Performance-based restricted stock units will vest based on the company's stock price reaching $12.00, $17.00, and $22.00 for 30 consecutive trading days.
• Blake Lawson, the current CFO, will continue in his role until June 24, 2024, and then resign.
• Ms. Kice's employment agreement includes severance benefits of six months of base salary and COBRA coverage if terminated without cause or if she resigns for good reason without a change of control, and twelve months of each if there is a change of control.

Sentiment

Score: 8

Explanation: The document reflects a positive development with the appointment of a new CFO, which is generally viewed favorably by investors. The terms of the agreement are standard and do not raise any immediate concerns.

Positives

• Tiffany Kice brings over 25 years of financial leadership experience to RumbleOn.
• Her experience includes roles in both public and private companies, as well as multi-site retail expertise.
• The compensation package includes a performance-based bonus structure, aligning her interests with the company's success.
• The employment agreement includes standard severance and benefits packages.

Risks

• The vesting of performance-based restricted stock units is contingent on the company's stock price reaching certain thresholds, which may not be achieved.
• The company's performance and stock price will directly impact the value of Ms. Kice's equity compensation.
• There is a risk of potential disruption during the transition of CFOs.

Future Outlook

The company expects that Ms. Kice's experience will help RumbleOn execute its strategy and continue to deliver value for customers and shareholders.

Management Comments

• Mike Kennedy, Chief Executive Officer of RumbleOn, stated, 'We are thrilled to welcome Tiffany to the RumbleOn team as our new CFO. Her experience with growth-focused, public and privately held companies and her expertise with multi-location retail businesses make her a perfect fit for RumbleOn as we continue to transform our business.'
• Tiffany Kice stated, 'I am excited to join RumbleOn at such a pivotal time in the company's history. The evolution of the company and its rapid movement to becoming the largest, fastest growing retailer in powersports will make this an exciting and challenging role. I look forward to helping RumbleOn execute its strategy and continue to deliver value for customers and shareholders.'

Industry Context

This appointment comes as RumbleOn continues to expand its presence in the powersports retail market, aiming to leverage Ms. Kice's financial expertise to support its growth and strategic initiatives.

Comparison to Industry Standards

• The compensation package for Ms. Kice, including base salary, bonus, and equity grants, is generally in line with industry standards for CFOs at publicly traded companies of similar size and complexity.
• The performance-based equity vesting structure is a common practice to align executive compensation with shareholder value creation.
• The severance package is also typical for executive-level employment agreements, providing a safety net in case of termination without cause or resignation for good reason.

Management Changes

Stakeholder Impact

• Shareholders may view the appointment of a new CFO with extensive experience as a positive development.
• Employees may experience changes in leadership and financial direction.
• Customers and suppliers are unlikely to be directly impacted by this change.

Next Steps

• Tiffany Kice will assume her role as CFO on June 24, 2024.
• The company will likely integrate Ms. Kice into the executive team and begin implementing her financial strategies.
• The company will grant the restricted stock units to Ms. Kice as per the agreement.

Key Dates

Keywords

Chief Financial Officer, CFO, Tiffany Kice, RumbleOn, executive appointment, financial leadership, compensation, restricted stock units, severance, powersports