Summary
MercadoLibre, Inc. (MELI) filed an 8-K report on May 5, 2021, detailing the establishment of performance goals for its 2021 Bonus Program and the adoption of its 2021 Long Term Retention Program (LTRP). The bonus program for Named Executive Officers (NEOs) will be based on achievement of Net Revenue, EBIT, transaction volume through Mercado Pago, shipping lead time, and weighted compound Net Promoter Score, with individual performance adjustments. The target bonus for each NEO is set at 33.33% of their annual base salary. The 2021 LTRP is designed to provide cash payments annually for six years, beginning between January 1, 2022, and April 30, 2022, subject to continued employment. These payments consist of a fixed component and a variable component tied to the company's stock performance relative to its 2020 average closing price. The filing also discloses the target 2021 LTRP awards for key executives, with the CEO, Marcos Galperin, receiving the largest award.
Key Highlights
- 1MercadoLibre has established performance metrics for its 2021 bonus program, including financial (Net Revenue, EBIT) and operational (Mercado Pago transactions, shipping lead time, NPS) targets.
- 2NEOs' target bonus for 2021 is set at 33.33% of their annual base salary, with potential adjustments based on individual performance.
- 3A new 2021 Long Term Retention Program (LTRP) has been adopted, offering annual cash payments over six years to NEOs and senior management.
- 4The LTRP payments have a fixed component and a variable component linked to the company's stock price performance.
- 5The first LTRP payments are scheduled to occur between January 1, 2022, and April 30, 2022.
- 6Specific target 2021 LTRP awards are disclosed for key executives, with Marcos Galperin ($6,139,585) and Pedro Arnt ($1,594,002) among those listed.
- 7The report indicates the full terms of the 2021 LTRP are available as an exhibit to the filing.