Stitch Fix Announces New Employee Inducement Grant

Rhea-AI Summary

On December 9, 2020, Stitch Fix (NASDAQ: SFIX) announced a significant stock option and restricted stock unit grant to CFO Dan Jedda. The grant includes options to purchase 255,372 shares at $56.05 each, with a structured vesting schedule over three years, based on his continued service. Additionally, 129,874 restricted stock units are allocated, also vesting in stages over three years. This compensation plan aims to incentivize Jedda's commitment and performance within the company, reflecting its strategic approach to leadership retention and alignment with shareholder interests.

Positive

• Dan Jedda's stock option grant of 255,372 shares at an exercise price of $56.05 indicates confidence in his leadership.
• The structured vesting schedule aligns Dan Jedda's interests with long-term company performance, potentially enhancing shareholder value.

Negative

• None.

SAN FRANCISCO, Dec. 11, 2020 (GLOBE NEWSWIRE) -- Stitch Fix, Inc. (NASDAQ: SFIX), the leading online personal styling service, today announced that effective December 9, 2020, the compensation committee of the company’s board of directors granted Dan Jedda, Chief Financial Officer, the option to purchase 255,372 shares of the company’s Class A common stock, at a per share exercise price of $56.05, and restricted stock units to acquire 129,874 shares of the company’s Class A common stock. 172,237 of the stock options vest over three years, with one sixth of the shares vesting on the six-month anniversary of Mr. Jedda's start date and the remainder vesting in equal monthly installments thereafter and 83,135 of the stock options vest over three years, with one thirty-sixth of the shares vesting on the thirteen-month anniversary of Mr. Jedda's start date and the remainder vesting in equal monthly installments thereafter, subject to Mr. Jedda's continued service on each vesting date. 86,583 of the restricted stock units vest over three years, with one sixth of the shares vesting on June 16, 2021, and the remainder vesting in equal quarterly installments thereafter and 43,291 of the restricted stock units vest over three years, with one twelfth of the shares vesting on December 15, 2021, and the remainder vesting in equal quarterly installments thereafter, subject to Mr. Jedda's continued service on each vesting date. The stock options and restricted stock units were granted pursuant to, and are subject to the terms of, the Stitch Fix, Inc. 2019 Inducement Plan and forms of stock option and restricted stock unit 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 an online personal styling service that is reinventing the shopping experience by delivering one-to-one personalization to our clients through the combination of data science and human judgment. Stitch Fix was founded in 2011 by CEO Katrina Lake. Since then, we’ve helped millions of women, men, and kids discover and buy what they love through personalized selections of apparel, shoes, and accessories, curated by Stitch Fix stylists and algorithms. For more information about Stitch Fix, please visit https://www.stitchfix.com.

FAQ

What stock options were granted to Stitch Fix's CFO Dan Jedda?

On December 9, 2020, Dan Jedda was granted options to purchase 255,372 shares of Class A common stock at $56.05 per share.

How do the stock options for Dan Jedda vest?

The stock options vest over three years, with specific portions vesting at six months, thirteen months, and then in equal monthly installments.

What is the purpose of Dan Jedda's stock grant?

The stock grant is designed to incentivize Dan Jedda's performance and continuity in his role as CFO, aligning his interests with those of shareholders.

How many restricted stock units were granted to Dan Jedda?

Dan Jedda received 129,874 restricted stock units that also vest over three years, with specific vesting milestones.