8-KLeadership Changes

CrowdStrike Holdings, Inc. 8-K Report, Executive Changes (Apr 10, 2020)

Filed April 10, 2020For Securities:CRWD

Summary

This 8-K filing from CrowdStrike Holdings, Inc. (CRWD) on April 10, 2020, details important changes in executive roles and compensation. Notably, Abhishek Maheshwari has been appointed as the company's principal accounting officer, a move that ensures continued oversight in financial reporting. While this appointment carries no new compensation, it signifies a strengthening of the finance team. Furthermore, the filing outlines significant adjustments to the compensation packages of key named executive officers, including CEO George Kurtz, CFO Burt W. Podbere, and COO Colin Black. These adjustments primarily involve base salary increases for Mr. Kurtz, a shift in bonus plan participation for Mr. Kurtz to a more formulaic incentive plan, and an increase in Mr. Podbere's target bonus percentage. Additionally, substantial equity awards for Fiscal Year 2021 were granted to these executives, comprising Restricted Stock Units (RSUs) and Performance Stock Units (PSUs) tied to service-based and revenue growth performance metrics, underscoring the company's commitment to aligning executive pay with long-term company performance and retention.

Key Highlights

  • 1Abhishek Maheshwari appointed as Principal Accounting Officer, effective immediately.
  • 2No new compensatory arrangements or modifications for Mr. Maheshwari's appointment.
  • 3CEO George Kurtz's annual base salary increased from $450,000 to $550,000, effective February 1, 2020.
  • 4Mr. Kurtz will transition from a discretionary bonus plan to the Corporate Incentive Plan (CIP) for Fiscal Year 2021.
  • 5CFO Burt W. Podbere's target annual cash bonus opportunity increased to 60% of his base salary.
  • 6Significant equity awards (RSUs and PSUs) granted for Fiscal Year 2021, totaling approximately $15 million for CEO Kurtz and $9 million each for CFO Podbere and COO Black.
  • 7Equity awards are tied to a four-year vesting schedule for RSUs and performance-based revenue growth for PSUs, promoting long-term retention and performance alignment.

Frequently Asked Questions

Abhishek Maheshwari has been appointed as CrowdStrike's Principal Accounting Officer, effective immediately on April 9, 2020.

No, there were no new compensatory arrangements or modifications to existing arrangements for Mr. Maheshwari in connection with his appointment as Principal Accounting Officer. He will continue to participate in existing employee compensation and benefit plans.

CEO George Kurtz's annual base salary was increased to $550,000 from $450,000, effective February 1, 2020. Additionally, starting in Fiscal Year 2021, he will participate in the Corporate Incentive Plan (CIP), a formulaic performance-based bonus plan, instead of his previous discretionary bonus plan.

The Fiscal Year 2021 equity awards consist of 2/3 Restricted Stock Units (RSUs) and 1/3 Performance Stock Units (PSUs). RSUs vest over four years, while PSUs vest based on achieving specific revenue growth targets for Fiscal Year 2021, in addition to service-based vesting conditions.