Stitch Fix Announces New Employee Inducement Grant

Rhea-AI Summary

Stitch Fix (NASDAQ: SFIX) announced that Sharon Chiarella, Chief Product Officer, has been granted stock options for 71,376 shares at $47.14 each, along with restricted stock units for 36,006 shares. The stock options will vest over three years, with one-sixth vesting after six months and the remainder in monthly installments, contingent on her continued service. The restricted stock units will similarly vest over three years, with one-sixth vesting on December 15, 2021, and the rest quarterly. These grants are part of the 2019 Inducement Plan approved by the board.

Positive

• Granting stock options and restricted stock units may incentivize Chiarella to align her performance with shareholder interests.
• The structured vesting schedule potentially enhances leadership retention and commitment.

Negative

• The high exercise price of $47.14 indicates significant expectations for future stock performance.
• Potential concerns over leadership continuity if Ms. Chiarella's tenure is impacted.

SAN FRANCISCO, April 01, 2021 (GLOBE NEWSWIRE) -- Stitch Fix Inc. (NASDAQ: SFIX), the leading online personal styling service, today announced that effective March 29, 2021, the compensation committee of the company’s board of directors granted Sharon Chiarella, Chief Product Officer, the option to purchase 71,376 shares of the company’s Class A common stock, at a per share exercise price of $47.14, and restricted stock units to acquire 36,006 shares of the company’s Class A common stock. The stock options vest over three years, with one sixth of the shares vesting on the six-month anniversary of Ms. Chiarella’s start date and the remainder vesting in equal monthly installments thereafter, subject to Ms. Chiarella’s continued service on each vesting date. The restricted stock units vest over three years, with one sixth of the shares vesting on December 15, 2021, and the remainder vesting in equal quarterly installments thereafter, subject to Ms. Chiarella’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 Sharon Chiarella of Stitch Fix?

Sharon Chiarella was granted stock options to purchase 71,376 shares at an exercise price of $47.14 each.

When do the stock options and restricted stock units for Sharon Chiarella vest?

The stock options vest over three years, with the first one-sixth vesting six months after her start date, and the restricted stock units vest similarly, with one-sixth on December 15, 2021.

What is the purpose of the stock option grant to Sharon Chiarella?

The stock option grant aims to incentivize Chiarella's performance and align her interests with those of the shareholders.

What is the significance of the 2019 Inducement Plan for Stitch Fix?

The 2019 Inducement Plan allows the company to grant equity to induce new hires, approved by the board to attract top talent.