8-KLeadership Changes

Affirm Holdings, Inc. 8-K Report, Executive Changes (Jun 6, 2022)

Filed June 6, 2022For Securities:AFRM

Summary

Affirm Holdings, Inc. (AFRM) announced the departure of its Chief Commercial Officer, Silvija Martincevic, effective June 30, 2022. This departure is accompanied by a Transition Agreement that includes post-employment consultancy services and accelerated vesting of equity awards. Investors should note that while Ms. Martincevic is stepping down from her executive role, she will continue to provide consulting services to the company through the end of 2022.

Key Highlights

  • 1Chief Commercial Officer Silvija Martincevic is resigning effective June 30, 2022.
  • 2Ms. Martincevic will serve as a consultant to Affirm from July 1, 2022, to December 31, 2022.
  • 3Compensation for consultancy services will be equal to half of her current annual salary ($475,000).
  • 4An additional payment equal to half of her current annual salary will be provided.
  • 5Vesting of 101,382 stock options and 12,151 restricted stock units scheduled to vest between January 1, 2023, and June 30, 2023, will be accelerated to December 31, 2022.
  • 6Affirm will cover COBRA medical benefits for Ms. Martincevic for up to 12 months.

Frequently Asked Questions

Silvija Martincevic, the Chief Commercial Officer, is resigning from her executive position. However, the company has entered into a Transition Agreement for her to continue as a consultant, ensuring some continuity of her expertise during the transition period.

The company will provide Ms. Martincevic with compensation for her consultancy services, an additional payment, accelerated vesting of certain equity awards, and up to 12 months of COBRA medical benefit coverage. These are primarily related to contractual obligations and retention of knowledge during the consultancy period.

While the departure of a key executive can have an impact, Affirm has structured the Transition Agreement to include consultancy services through December 31, 2022. This arrangement aims to mitigate immediate operational disruption and leverage her ongoing contribution.

The vesting of 101,382 stock options and 12,151 restricted stock units that were originally scheduled to vest between January 1, 2023, and June 30, 2023, will now vest on December 31, 2022, as part of the Transition Agreement.