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Etsy Executives Have Golden Parachutes Too

As Etsy preps for its Initial Public Offering, it’s also seeking to attract more experienced executives and board members. Contained in Etsy’s filing to go public is information about executive compensation – including golden parachutes – which may be of interest to sellers who list on the site.

Etsy CEO Chad Dickerson earned a salary of $300,000 in 2013, and he earned $547,500 in compensation in 2014 consisting of $300,000 salary and $247,500 non-equity incentive plan compensation.

In 2013, Etsy hired Kristina Salen as its Chief Financial Officer and Jordan Breslow as its General Counsel.

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Salen earned a salary of $251,202 in 2013, a signing bonus of $175,000, an option award of $1.7 million, and $192,333 in other compensation in 2013. She earned a salary of nearly $300,000 in 2014, along with $211,750 in non-equity incentive plan compensation and $70,316 in other compensation (relocation benefits).

Etsy also published information regarding unexercised stock options held by each of its named executive officers as of December 31, 2014. Included in the table, for example: Dickerson has 600,000 options he can exercise at $1.15 and just over 1.7 million options he can exercise at $2.38, in addition to holding a large number of as-yet unexercisable options.

Those kinds of figures give a taste of the incentive Etsy executives and employees have to bring the company public.

Perks
Etsy had this to say about executive perks: “Our named executive officers are eligible to participate in our health and welfare plans to the same extent as other full-time employees generally. We generally do not provide our named executive officers with perquisites or other personal benefits. From time to time, however, we provide relocation benefits to new executive officers.”

Golden Parachutes
We recently reviewed the “Golden Parachute” provisions of eBay executives – the amount the executive would receive if the company were to terminate their employment without cause or if the executive officer terminates employment “for good reason.”

Etsy also offers severance packages to its top executives.

Currently Dickerson is the only executive who currently has such a provision: he would receive $1.8 million now if terminated without cause (or resigns for good reason).

Here is the Golden Parachute provision for the executives once Etsy goes public:
Chad Dickerson: $3.6 million
Kristina Salen: $1.8 million
Jordan Breslow: after offering: $1.65 million

As with many companies, the Golden Parachute has a “Change in Control” provision that applies to the 3 months prior to or 12 months after a change in control; that doubles the benefit (i.e., Dickerson would receive $7.2 million). They would also be entitled to receive reimbursement for healthcare continuation coverage, and would be entitled to full vesting of any outstanding equity awards then held.

We compiled the information in this article from Etsy’s Form S-1 on the SEC website.

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Ina Steiner

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. Send news tips to ina@ecommercebytes.com.


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