Takes cash pay cut, with potential big share payday — Endurance CEO
Ravichandran could get up to 3.7 million additional shares of EIGI stock.
Endurance International Group CEO Hari Ravichandran is taking a big cash pay cut in return for shares in the firm if it hits free cash flow targets.
Ravichandran’s annual salary will be reduced from $750,000 to $200,000 and he won’t receive any cash bonuses for 2015, 2016 and 2017.
The upside: the potential to get another 3.7 million shares in the firm over the next three years. Shares right now trade for $14 a share, so that’s potentially over $50 million if he helps the firm knock it out of the park.
Ravichandran can earn shares each quarter based on hitting cash flow goals, and the incentive program includes some “make up” capability for big capital costs.
Endurance International Group noted that the compensation plan is “specifically designed to incentivize performance in excess of the target level by accelerating the number of Award Shares Mr. Ravichandran would receive for results above target. The Board and the Committee believe that achieving target level performance over the Performance Period would represent meaningful free cash flow per share growth from current levels and would create significant shareholder value, and that achieving the maximum level would represent exceptional performance.”
Details are in an 8-K filing.
Endurance International Group owns a number of domain name firms, counting Domain.com and BuyDomains.
