Stitch Fix Announces New Employee Inducement Grants

Rhea-AI Summary

Stitch Fix, Inc. (NASDAQ: SFIX) announced on March 15, 2022, that its compensation committee granted Chief Technology Officer Sachin Dhawan the option to purchase 612,170 shares of Class A common stock at $11.31 each, along with 306,085 restricted stock units (RSUs). The options and RSUs will vest over specific periods contingent on Mr. Dhawan's continued service. Additionally, 47 new employees were granted a total of 1,212,956 RSUs, set to vest similarly. These grants are part of the company’s 2019 Inducement Plan, aimed at attracting new talent.

Positive

• Attracting new talent with stock options and RSUs could enhance team performance.
• Sachin Dhawan's continued leadership as CTO may drive technological advancements.

Negative

• Stock options at a price higher than current market value may not be attractive to employees.
• Potential dilution of existing shares due to new stock grants.

SAN FRANCISCO, March 15, 2022 (GLOBE NEWSWIRE) -- Stitch Fix, Inc. (NASDAQ:SFIX), the leading online personal styling service, today announced that effective March 10, 2022, the compensation committee of the company’s board of directors granted Sachin Dhawan, Chief Technology Officer, the option to purchase 612,170 shares of the company’s Class A common stock, at a per share exercise price of $11.31, and restricted stock units (“RSU”) to acquire 306,085 shares of the company’s Class A common stock. One fourth (25%) of the stock options will vest on June 24, 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 Mr. Dhawan’s continued service on each vesting date. One fourth (25%) of the RSUs will vest on June 15, 2022, 12.5% will vest on each of September 14, 2022 and December 14, 2022, 8.33% will vest on each of four quarterly RSU vesting dates during calendar year 2023, and 4.17% will vest on each of four quarterly RSU vesting dates during calendar year 2024, subject to Mr. Dhawan’s continued service on each vesting date.

In addition, effective March 15, 2022, the compensation committee of the company’s board of directors granted restricted stock units to 47 new employees to acquire an aggregate of 1,212,956 shares of the company’s Class A common stock. One sixteenth of the restricted stock units will vest on June 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 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: Tanny Shelburne ir@stitchfix.com

PR Contact: media@stitchfix.com

FAQ

What stock options were granted to Sachin Dhawan?

Sachin Dhawan was granted options to purchase 612,170 shares of Class A common stock at an exercise price of $11.31.

When will Sachin Dhawan's stock options and RSUs vest?

His options will vest starting June 24, 2022, with specific percentages vesting monthly thereafter. RSUs will begin to vest on June 15, 2022.

Why did Stitch Fix grant stock options to new employees?

The stock options and RSUs were granted to attract new talent under the company’s 2019 Inducement Plan.

How many restricted stock units were granted to new employees?

A total of 1,212,956 restricted stock units were granted to 47 new employees.