Stitch Fix Announces New Employee Inducement Grants

Rhea-AI Summary

Stitch Fix (NASDAQ: SFIX) announced significant stock option and restricted stock unit grants to Chief Marketing Officer Debbie Rose Woloshin, totaling 486,618 shares at $6.81 each, with a vesting schedule extending to 2025. Additionally, over 2.2 million shares were granted to new employees, with vesting commencing in September 2022. These grants are part of the 2019 Inducement Plan aimed at attracting talent. The company leverages a blend of human expertise and data science to enhance its online personal styling services, reinforcing its position as a market leader.

Positive

• Stock options and RSUs granted to new and existing employees may enhance talent retention and attract skilled professionals.
• The compensation structure aligns long-term interests between employees and shareholders.

Negative

• Potential concerns about the company’s reliance on stock-based compensation to attract talent.
• Significant dilution risk for existing shareholders due to large equity grants.

SAN FRANCISCO, June 17, 2022 (GLOBE NEWSWIRE) -- Stitch Fix, Inc. (NASDAQ:SFIX), the leading online personal styling service, today announced that effective June 15, 2022, the compensation committee of the company’s board of directors granted Debbie Rose Woloshin, Chief Marketing Officer, the option to purchase 486,618 shares of the company’s Class A common stock, at a per share exercise price of $6.81, and restricted stock units (“RSU”) to acquire 243,309 shares of the company’s Class A common stock. One fourth (25%) of the stock options will vest on November 23, 2022, 4.17% of the options will vest each month over the following 6 months, 2.78% of the options will vest each month over the following 12 months, and 1.385% of the options will vest each month over the remaining 12 months, subject to Ms. Woloshin’s continued service on each vesting date. One fourth (25%) of the RSUs will vest on December 14, 2022, 12.5% will vest on each of March 15, 2023 and June 14, 2023, 8.33% will vest on each of four quarterly RSU vesting dates during fiscal year 2024, and 4.17% will vest on each of four quarterly RSU vesting dates during fiscal year 2025, subject to Ms. Woloshin’s continued service on each vesting date.

In addition, effective May 16, 2022, the compensation committee of the company’s board of directors granted restricted stock units to 31 new employees to acquire an aggregate of 1,277,663 shares of the company’s Class A common stock. Effective June 15, 2022, the compensation committee of the company’s board of directors granted restricted stock units to 21 new employees to acquire an aggregate of 939,172 shares of the company’s Class A common stock. One sixteenth of the restricted stock units will vest on September 15, 2022, and the remainder will vest in 15 equal quarterly installments of 1/16th over the next fifteen (15) subsequent quarterly RSU vesting dates, subject to the recipient's continuous service on each vesting date.

The stock options and RSUs were granted pursuant to, and are subject to the terms of, the Stitch Fix, Inc. 2019 Inducement Plan and forms of stock option and RSU agreements thereunder, which were approved by the company's board of directors in October 2019 under Rule 5635(c)(4) of the Nasdaq Global Market for equity grants to induce new employees to enter into employment with the company.

About Stitch Fix, Inc.

Stitch Fix is the world's leading online personalized shopping and styling experience. Our unique business model combines the human touch of expert Stylists with the precision of advanced data science. Since our founding in 2011, we’ve served as a trusted style partner to millions of people, helping adults and kids get dressed every day feeling like their best selves. The Stitch Fix team is building a transformative and inclusive ecommerce model, an ecosystem of shopping experiences based on convenience and guided discovery that makes it radically simple and delightful for customers to discover and buy what they love. For more, visit https://www.stitchfix.com.

IR Contact: ir@stitchfix.com

PR Contact: media@stitchfix.com

FAQ

What stock options were granted to Debbie Rose Woloshin at Stitch Fix?

Debbie Rose Woloshin was granted stock options to purchase 486,618 shares at $6.81 each.

When will Debbie Rose Woloshin's stock options vest?

Woloshin's options will vest over several periods starting from November 23, 2022, and continuing through 2025.

How many shares were granted to new employees at Stitch Fix?

A total of 2.2 million shares were granted to new employees in the recent announcements.

What is the purpose of the stock grants announced by Stitch Fix?

The grants are part of the 2019 Inducement Plan designed to attract and retain top talent.

What are the vesting terms for the stock options and RSUs granted?

Stock options and RSUs have specific vesting schedules ranging from immediate vesting to ongoing quarterly installments.