Item. 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On January 29, 2021, the Compensation Committee (the "Compensation Committee") of the Board of Directors (the "Board") of Yelp Inc. (the "Company"), pursuant to the authority delegated to it by the Board, approved compensation arrangements for the Company's executive officers (collectively, the "Executive Officers"). The Compensation Committee also approved compensation arrangements for James Miln, the Company's Senior Vice President, Finance and Investor Relations, who previously served as the Company's Interim Chief Financial Officer and is currently a named executive officer (as defined in Item 402(a)(3) of Regulation S-K promulgated by the U.S. Securities and Exchange Commission ("SEC")) of the Company. The Executive Officers together with Mr. Miln are referred to in this current report as the "Officers."
Base Salaries
The Compensation Committee approved annual base salaries for each of the Officers as set forth in the table below, to be effective from January 1, 2021. The Compensation Committee determined not to make a change to the annual base salary of Mr. Schwarzbach or Mr. Miln at this time.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Officer
|
|
Title
|
|
2021 Annual Base Salary
|
Jeremy Stoppelman
|
|
Chief Executive Officer
|
|
$500,000.00
|
David Schwarzbach
|
|
Chief Financial Officer
|
|
$450,000.00
|
Joseph R. ("Jed") Nachman
|
|
Chief Operating Officer
|
|
$450,000.00
|
Vivek Patel
|
|
Chief Product Officer
|
|
$450,000.00
|
Laurence Wilson
|
|
Chief Administrative Officer & General Counsel
|
|
$450,000.00
|
James Miln
|
|
Senior Vice President, Finance and Investor Relations
|
|
$330,000.00
|
Restricted Stock Units
The Compensation Committee approved the grant of restricted stock units covering shares of the Company's common stock (the "RSUs") to the Officers as set forth below, the grant date for which will be February 5, 2021. The shares underlying each RSU will vest in equal quarterly installments over four years from the grant date, provided that the applicable Officer is providing services to the Company as of each such vesting date.
|
|
|
|
|
|
|
|
|
Officer
|
|
RSUs
|
Jeremy Stoppelman
|
|
119,417
|
|
David Schwarzbach
|
|
51,179
|
|
Jed Nachman
|
|
59,709
|
|
Vivek Patel
|
|
37,531
|
|
Laurence Wilson
|
|
34,119
|
|
James Miln
|
|
19,192
|
|
The RSUs will be granted pursuant to, and in accordance with, the terms and conditions of the Company's 2012 Equity Incentive Plan, as amended (the "Plan"), and the forms of RSU Agreement and Grant Notice previously filed with the SEC.
Performance-Based Awards
The Compensation Committee approved the grant of performance-based restricted stock units covering shares of the Company's common stock (the "Performance Awards") to the Officers as set forth below. The grant date of the Performance Awards will also be February 5, 2021. The vesting of the Performance Awards is subject to both the achievement of performance goals and a four-year, quarterly vesting schedule (the "Time-Based Vesting Schedule"), as described in more detail below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Awards
|
Officer
|
|
Threshold
|
|
Target
|
|
Maximum
|
Jeremy Stoppelman
|
|
29,855
|
|
|
119,417
|
|
|
238,834
|
|
David Schwarzbach
|
|
12,795
|
|
|
51,179
|
|
|
102,358
|
|
Jed Nachman
|
|
14,928
|
|
|
59,709
|
|
|
119,418
|
|
Vivek Patel
|
|
9,383
|
|
|
37,531
|
|
|
75,062
|
|
Laurence Wilson
|
|
8,530
|
|
|
34,119
|
|
|
68,238
|
|
James Miln
|
|
1,600
|
|
|
6,398
|
|
|
12,796
|
|
A percentage of the target number of shares subject to the Performance Awards shown above, ranging from zero to 200%, will become eligible to vest based on the Company's level of achievement of performance goals set by the Compensation Committee for the Company's net revenue and adjusted EBITDA for the year ending December 31, 2021. For purposes of the Performance Awards, adjusted EBITDA is defined as the non-GAAP adjusted EBITDA financial measure as reported in the Company's periodic filings with the SEC, provided that the Compensation Committee may adjust such amount if it determines it would be more appropriate to achieve the objectives of the Performance Awards.
The Compensation Committee will determine the Company's level of achievement of the performance goals for the year ending December 31, 2021 with reference to a threshold, target and stretch goal for each metric. The Compensation Committee will then calculate the percentage of the target shares that will become eligible to vest, giving an equal weighting to each metric.
The Compensation Committee will make the final determination of the Company's level of achievement of the performance goals, and the shares subject to the Performance Awards that will become eligible to vest (the "Eligible Shares"), no later than March 15, 2022. On the quarterly vest date immediately following such determination, the Eligible Shares, if any, will vest to the extent that the applicable Officer has met the Time-Based Vesting Schedule as of such date. Thereafter, the Eligible Shares will continue vesting in accordance with the Time-Based Vesting Schedule, subject to the applicable Officer's continued service as of each such vesting date.
The Performance Awards will be granted pursuant to, and in accordance with, the terms and conditions of the Plan, as well as a Performance Award Agreement and Grant Notice previously filed with the SEC.