Stitch Fix Appoints Elizabeth Spaulding as CEO, Providing Details on Her Compensation Package

Strategic Insights -

On June 23, 2021, the Board of Directors of Stitch Fix, Inc. appointed Elizabeth Spaulding as the new Chief Executive Officer of the Company, effective August 1, 2021. This announcement followed the Company's previous statement on April 13, 2021, regarding the Board's intention to appoint Ms. Spaulding to this role. In connection with her new position, the Compensation Committee of the Board approved a new employment agreement with Ms. Spaulding, which includes a comprehensive compensation package. The agreement amends and restates Ms. Spaulding's offer letter dated November 7, 2019, and is effective as of August 1, 2021.

Key Takeaways:

  • Elizabeth Spaulding, age 45, was appointed as the new Chief Executive Officer of Stitch Fix, Inc., effective August 1, 2021.
  • Prior to her appointment, Ms. Spaulding served as President of the Company since January 2020 and was a Partner at Bain & Company from June 2010 to December 2019, focusing on expanding the firm's capabilities in software development and engineering.
  • According to her new employment agreement, Ms. Spaulding will receive an annual base salary of $650,000, eligibility to participate in the Company's executive bonus program with a target bonus of 75% of base salary, and a stock award valued at $6,850,000.
  • The stock options granted to Ms. Spaulding under the agreement will vest in equal monthly installments over forty-two months, with the first monthly vest on September 1, 2021, subject to continued service with the Company.
  • The restricted stock units granted to Ms. Spaulding under the agreement will vest in equal quarterly installments over fourteen quarters, with the first quarterly vest on September 15, 2021, subject to continued service with the Company.
  • Ms. Spaulding's employment agreement includes comprehensive details on her compensation package, which will be filed as an exhibit to the Company's next annual report on Form 10-K.
  • Ms. Spaulding holds a B.A.S. in Management and Decision Sciences, as well as in French, from Stanford University and an M.B.A. from the Stanford Graduate School of Business where she was an Arjay Miller Scholar.

Statistics:

  • $650,000: the annual base salary of Elizabeth Spaulding as Chief Executive Officer of Stitch Fix, Inc.
  • 75%: the target bonus percentage for Elizabeth Spaulding under the Company's executive bonus program.
  • $6,850,000: the stock award value granted to Elizabeth Spaulding under her new employment agreement.
  • 42 months: the vesting period for the stock options granted to Elizabeth Spaulding.
  • 14 quarters: the vesting period for the restricted stock units granted to Elizabeth Spaulding.
  • 1998: the year Elizabeth Spaulding joined Bain & Company.
  • 45: the age of Elizabeth Spaulding at the time of her appointment as CEO.

Sources:

  • SEC FORM 8-K (Current Report) filed by Stitch Fix, Inc. with the Securities and Exchange Commission on June 28, 2021.