Peloton CEO Barry McCarthy Receives A Pay Raise

Peloton’s CEO, Barry McCarthy, is set to receive a pay raise as outlined in the company’s recent 10-Q form filed with the SEC. According to the filing:

On May 1, 2023, the Company’s Board of Directors, based on a recommendation from the Compensation Committee, approved an annual base salary increase for Barry McCarthy, the Chief Executive Officer and President. His salary will rise from $1.0 million to $1.25 million, effective from May 8, 2023. It’s worth noting that all other aspects of Mr. McCarthy’s employment, including the terms of his existing equity awards, will remain unchanged.

Starting from May 8, 2023, McCarthy’s annual base salary will be elevated from $1 million to $1.25 million. However, his equity awards, which were detailed in an 8-K form upon his appointment, will not be altered at this time.

McCarthy’s equity awards consisted of a stock option grant, which allowed him to purchase 8 million shares of Peloton stock. These shares would vest monthly over a span of 4 years. The purchase price for these stock options was fixed to the closing price of PTON stock on the day of McCarthy’s hiring, which settled at $38.77 on February 9th, 2022. As of now, these stock options would be underwater since the stock has been fluctuating between $7 and $9 per share.

McCarthy took on the role of Peloton’s CEO in February 2022 following the departure of the company’s founder and former CEO, John Foley.

In addition to this news, the latest earnings call and filing revealed several noteworthy developments. These include the official announcement of app tiers and an upcoming rebranding effort, a settlement with DISH Network, and an ongoing collaboration with the U.S. Consumer Product Safety Commission (CPSC) to address an issue with the original Bike seat post.

Read also: