Form 4: Shutterstock CFO Jarrod Yahes Reports Acquisition of Performance-Based and Regular Restricted Stock Units

Jarrod Yahes, CFO of Shutterstock, Inc., reports the acquisition of performance-based and regular restricted stock units on April 1, 2024.

Summary

• On April 1, 2024, Jarrod Yahes, the Chief Financial Officer of Shutterstock, Inc., acquired 48,599 performance-based restricted stock units (PSUs) and 16,199 restricted stock units (RSUs).
• The PSUs vest in three equal annual installments starting April 1, 2025, contingent upon achieving certain adjusted EBITDA margin and revenue growth performance thresholds.
• The RSUs also vest in three equal annual installments beginning April 1, 2025, subject to continued employment.
• Both PSUs and RSUs represent a contingent right to receive one share of Shutterstock's common stock.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive as it reflects standard executive compensation practices and aligns management incentives with company performance.

Positives

• The vesting of PSUs is tied to the achievement of adjusted EBITDA margin and revenue growth, aligning executive compensation with company performance.
• The vesting of RSUs is tied to continued employment, incentivizing the CFO to remain with the company.

Risks

• The vesting of PSUs is contingent upon achieving specific performance targets, which may not be met.
• The vesting of RSUs is contingent upon continued employment, and the CFO's departure would result in forfeiture of unvested units.

Future Outlook

The document does not contain specific forward-looking statements beyond the vesting schedules of the stock units.

Industry Context

Stock grants are a common practice in the tech industry to incentivize executives and align their interests with those of shareholders.

Comparison to Industry Standards

• Stock-based compensation is a standard practice among publicly traded companies, particularly in the technology sector.
• Companies like Adobe, Getty Images, and similar firms often use a mix of stock options, RSUs, and PSUs to incentivize their executives.
• The vesting schedules and performance metrics tied to these grants are typically aligned with industry benchmarks for executive compensation.

Stakeholder Impact

• Shareholders: Aligns executive compensation with company performance, potentially increasing shareholder value.
• Employees: Demonstrates the company's commitment to incentivizing key personnel.
• Management: Provides incentives for the CFO to drive company growth and profitability.

Key Dates