Peloton has released the details of their new CEO’s compensation.
In case you missed it, last week Peloton announced Peter Stern will be the new CEO effective January 1, 2025. Former CEO Barry McCarthy announced his departure on May 2, 2024, and Peloton has been spearheaded by Peloton board members Karen Boone and Chris Bruzzo in the interim.
According to a new Peloton SEC filing, Stern will receive a comprehensive compensation package that includes a mix of base salary, performance incentives, signing bonuses, and equity awards.
Most notably, Stern will receive a base salary of $1.25 million per year. This is what former CEO McCarthy’s salary was raised to last year, after initially being hired with a $1 million base salary.
In addition, Stern is receiving a one-time sign-on bonus of $1 million. However, there are conditions for reimbursement if Stern leaves within 18 months under certain circumstances.
Peloton has also allocated an additional 100% of his base salary (currently $1.25 million) for an annual performance-based bonus, which hinges on meeting certain benchmarks that align with Peloton’s growth and strategic goals.
Finally, Stern will be eligible for equity awards valued at $20 million, including stock options, time-based restricted stock units, and performance-based restricted stock units, subject to Board approval.
The filing also notes that company expects to grant refresh equity awards of $15 million for each of the next two years as well (with 50% of the stock being time based, and 50% being performance based).
Other items of note from the filing include that Stern must work from the New York City office three days per week under Peloton’s work modality policy; and the company will provide security services for transportation between the CEO’s residence and the office.
If you missed the news from Peloton’s latest earnings report, you can catch up via our overview article.
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