SOUNDTHINKING, INC.
PROXY STATEMENT
FOR THE 2025 ANNUAL MEETING OF STOCKHOLDERS
TO BE HELD ON
WEDNESDAY, JUNE 4, 2025 AT 9:00 A.M. PACIFIC TIME
QUESTIONS AND ANSWERS ABOUT THESE PROXY MATERIALS AND VOTING
Why did I receive a notice regarding the availability of proxy materials on the Internet?
Pursuant to rules adopted by the Securities and Exchange Commission (the “SEC”), we have elected to provide access to our proxy materials over the Internet. Accordingly, we will send you a Notice of Internet Availability of Proxy Materials (the “Notice”) because the Board of Directors (the “Board”) of SoundThinking, Inc. (referred to as the “Company” or “SoundThinking”) is soliciting your proxy to vote at the 2025 Annual Meeting of Stockholders (the “Annual Meeting”), including any adjournments or postponements of such meeting. All stockholders will have the ability to access the proxy materials on the website referred to in the Notice or request to receive a printed set of the proxy materials. Instructions on how to access the proxy materials over the Internet or to request a printed copy may be found in the Notice. Please note that while our proxy materials are available at the website referenced in the Notice, and our Notice, Proxy Statement and Annual Report on Form 10-K are available on our website, no other information contained on either website is incorporated by reference in or considered to be a part of this document.
We intend to first mail the Notice and make this proxy statement and the form of proxy card available to stockholders on or about April 24, 2025.
Will I receive any other proxy materials by mail?
We may send you a proxy card, along with a second Notice, on or after May 3, 2025. You may also request that we mail you a full set of the proxy materials. Instructions on how to request a printed copy may be found in the Notice.
What is the date, time and place of the Annual Meeting?
The Annual Meeting will be held virtually via a live audio webcast at www.meetnow.global/MXTQUMZ on Wednesday, June 4, 2025 beginning at 9:00 a.m. Pacific Time. Any stockholder can listen to and participate in the Annual Meeting via the live audio webcast, and we believe that a virtual meeting provides expanded stockholder access and participation and improved communications, while affording stockholders the same rights as if the meeting were held in person, including the ability to vote shares electronically and submit questions and comments during the meeting in accordance with the rules of conduct for the meeting. We encourage you to attend online and participate.
How do I attend and ask questions during the Annual Meeting?
We will be hosting the Annual Meeting via live audio webcast only. The meeting will start at 9:00 a.m. Pacific Time on Wednesday, June 4, 2025. Stockholders attending the Annual Meeting will be afforded the same rights and opportunities to participate as they would at an in-person meeting.
You can attend the meeting by accessing www.meetnow.global/MXTQUMZ, and entering the 15-digit control number included on your Notice or your proxy card if you received one by mail. If you are a registered stockholder (i.e., you hold your shares through our transfer agent, Computershare Trust Company, N.A. (“Computershare”)), you do not need to register to attend the Annual Meeting virtually on the Internet. Please follow the instructions on the Notice or proxy card that you received.
1
Internet and telephone voting facilities for stockholders of record will be available for 24 hours a day and will close at 8:59 p.m. Pacific Time on June 3, 2025.
Beneficial Owner: Shares Registered in the Name of a Broker or Bank
If on April 10, 2025, your shares were held, not in your name, but rather in an account at a brokerage firm, bank or other similar organization, then you are the beneficial owner of shares held in “street name” and these proxy materials are being forwarded to you by that organization. The organization holding your account is considered to be the stockholder of record for purposes of voting at the Annual Meeting. As a beneficial owner, you have the right to direct your broker, bank or other agent regarding how to vote the shares in your account and you should have received instructions from that organization as to how to do so, including by internet, telephone or mail. You are also invited to attend the virtual Annual Meeting. However, because you are not the stockholder of record, you may not vote your shares online at the meeting unless you request and obtain a valid proxy from your broker, bank or other agent.
Internet proxy voting will be provided to allow you to vote your shares online, with procedures designed to ensure the authenticity and correctness of your proxy vote instructions. However, please be aware that you must bear any costs associated with your internet access, such as usage charges from internet access providers and telephone companies.
How many votes do I have?
Each share of common stock you owned as of April 10, 2025 is entitled to one vote on each matter that is submitted to stockholders for approval.
If I am a stockholder of record and I do not vote, or if I otherwise cast my vote without giving specific voting instructions, what happens?
If you are a stockholder of record and do not vote by completing your proxy card by telephone, through the internet or online at the Annual Meeting, your shares will not be voted.
If you return a signed and dated proxy card or otherwise vote without marking voting selections, your shares will be voted, as applicable, FOR the election of both nominees for Class II director, FOR the advisory approval of executive compensation, and FOR the ratification of the appointment by the Audit Committee of Baker Tilly US, LLP as the Company’s independent registered public accounting firm for the fiscal year ending December 31, 2025.
If any other matter is properly presented at the Annual Meeting, your proxyholder (one of the individuals named on your proxy card) will vote your shares using that individual’s best judgment.
If I am a beneficial owner of shares held in street name and I do not provide my broker or bank with voting instructions, what happens?
If you are a beneficial owner of shares held in street name and you do not instruct your broker, bank or other agent how to vote your shares, your broker, bank or other agent may still be able to vote your shares in its discretion depending on whether the particular proposal is considered to be a routine matter under applicable rules. Brokers and nominees can use their discretion to vote “uninstructed” shares with respect to matters that are considered to be “routine” under applicable rules but not with respect to “non-routine” matters.
Proposal 1 (election of directors) and Proposal 2 (advisory approval of executive compensation) are considered to be “non-routine” matters, but Proposal 3 (to ratify the appointment by the Audit Committee of
4
Baker Tilly US, LLP as the Company’s independent registered public accounting firm for the year ending December 31, 2025) is considered to be a “routine” matter. Accordingly, your broker or nominee may not vote your shares on Proposal 1 and Proposal 2 without your instructions but may vote your shares on Proposal 3 even in the absence of your instruction.
If you are a beneficial owner of shares held in street name, and you do not plan to attend the Annual Meeting, in order to ensure your shares are voted in the way you would prefer, you must provide voting instructions to your broker, bank or other agent by the deadline provided in the materials you receive from your broker, bank or other agent.
What are “broker non-votes”?
As discussed above, when a beneficial owner of shares held in street name does not give voting instructions to his or her broker, bank or other securities intermediary holding his or her shares as to how to vote on matters deemed to be “non-routine,” the broker, bank or other such agent cannot vote the shares. When there is at least one “routine” matter that the broker, bank or other securities intermediary votes on, the shares that are un-voted on “non-routine” matters are counted as “broker non-votes.” Proposal 3 is considered to be a “routine” matter and we therefore expect brokers, banks or other securities intermediaries to vote on that proposal. Proposal 1 and Proposal 2 are considered to be “non-routine” and we therefore expect broker non-votes to exist in connection with those proposals.
As a reminder, if you a beneficial owner of shares held in street name, in order to ensure your shares are voted in the way you would prefer, you must provide voting instructions to your broker, bank or other agent by the deadline provided in the materials you receive from your broker, bank or other agent.
What constitutes a quorum?
A quorum of stockholders is necessary to hold a valid meeting. The presence at the Annual Meeting, in person, by remote communication, if applicable, or by proxy duly authorized, of the holders of a majority of the voting power of the outstanding shares of stock entitled to vote will constitute a quorum, permitting the meeting to conduct its business. Your shares will be counted towards the quorum only if you submit a valid proxy (or one is submitted on your behalf by your broker, bank or other nominee) or if you attend the meeting. As of the record date, there were 12,666,095 shares of common stock outstanding, all of which are entitled to be voted at the Annual Meeting. As described above, stockholders attending the virtual meeting will be deemed to be attending in person, as provided by Delaware law, and their shares will be counted towards the quorum requirement. Abstentions and broker non-votes will be counted towards the quorum requirement. If there is no quorum, either the chairperson of the Annual Meeting or the holders of a majority of the voting power of the shares represented thereat may adjourn the Annual Meeting to another date.
What vote is required for adoption or approval of each proposal and how will the votes be counted?
The following table summarizes the minimum vote needed to approve each proposal and the effect of abstentions and broker non-votes.
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Proposal Number |
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Proposal Description |
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Vote Required for Approval |
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Voting Options |
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Effect of Abstentions or Withhold Votes (as applicable) |
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Effect of Broker Non-Votes |
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Board Recommendations |
1 |
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Election of Directors named in this Proxy Statement |
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The two nominees receiving the most FOR votes; withheld votes will have no effect. |
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FOR or WITHHOLD |
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No effect |
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No effect |
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FOR both nominees |
5
THE BOARD OF DIRECTORS RECOMMENDS
A VOTE FOR EACH NAMED NOMINEE.
Class III Directors Continuing in Office Until the 2026 Annual Meeting of Stockholders
Ralph A. Clark has served as our President and Chief Executive Officer and as a member of our Board since August 2010. From September 2005 until July 2010, Mr. Clark served as Chief Executive Officer of GuardianEdge Technologies, Inc., an endpoint data security firm. Prior to that, Mr. Clark served as Vice President, Finance of Adaptec, Inc. following Adaptec’s acquisition of Snap Appliances, Inc., where he had been Chief Financial Officer. Mr. Clark is a member of the board of directors of Trinet Group, Inc., a provider of comprehensive human resources for small and medium-size businesses. Mr. Clark is also a member of the board of directors of Glowforge, a private company manufacturer of 3D laser printers. Mr. Clark also has held various positions at start-up companies, served in executive sales and marketing roles at IBM and worked as an investment banker at Goldman Sachs and Merrill Lynch. Mr. Clark holds a B.S. in economics from the University of the Pacific and an M.B.A. from Harvard Business School. Our Board believes that Mr. Clark’s significant business experience from both inside and outside our industry and his role as our Chief Executive Officer qualify him to serve on our Board.
Marc Morial has served as a member of our Board since September 2015. Since 2003, Mr. Morial also has served as the President and Chief Executive Officer of the National Urban League, a civil rights organization dedicated to economic empowerment in order to elevate the standard of living in historically underserved urban communities. From 1994 to 2002, Mr. Morial served as the Mayor of New Orleans, Louisiana. Prior to serving as Mayor of New Orleans, Mr. Morial held other various positions in public office and nonprofit management. Mr. Morial has a B.A. in economics from the University of Pennsylvania and a J.D. from Georgetown University. Our Board believes that Mr. Morial’s experience in serving underserved urban communities, local governments and community organizations qualifies him to serve on our Board.
Ruby Sharma has served as a member of our Board since December 2021. From September 2018 to December 2022, she has served as Managing Partner of RNB Strategic Advisors, a strategic advisory firm. From 2004 to 2017, Ms. Sharma served as Senior Partner and from 2002 to 2004 as Senior Manager at Ernst & Young LLP. From 1999 to 2002, Ms. Sharma served as Senior Manager at Arthur Andersen LLP. From 1996 to 1998, Ms. Sharma served as Senior Manager at Grant Thornton GmbH. Ms. Sharma holds a B.A. in Economics from Delhi University. Ms. Sharma is a Fellow Chartered Accountant of the Institute of Chartered Accountants in England and Wales and completed an Executive Program at Northwestern University Kellogg School of Management. Our Board believes that Ms. Sharma’s significant experience in accounting and auditing matters qualifies her to serve on our Board.
Class I Directors Continuing in Office Until the 2027 Annual Meeting of Stockholders
William J. Bratton has served as a member of our Board since November 2017 and previously served as a member of our Board from April 2013 until December 2013. Since September 2016, Mr. Bratton has served as Senior Managing Director of Teneo Holdings, a global CEO advisory firm, and as Executive Chairman of its Teneo Risk division. From January 2014 until September 2016, Mr. Bratton served a second term as Commissioner of the New York City Police Department (“NYPD”), by appointment. From November 2012 to December 2013, Mr. Bratton served as Chief Executive Officer of the Bratton Group LLC, a New York City-based public safety and law enforcement consulting firm, which has consulted extensively in the United States and Latin America on policing, public safety and rule-of-law initiatives. From September 2010 to November 2012, Mr. Bratton served as Chairman of Kroll Advisory Solutions (“Kroll”), a global security solutions and specialized law enforcement company, the successor to Altegrity Risk International where he served as Chairman from November 2009 to November 2012. From October 2002 to October 2009, Mr. Bratton served as Chief of the Los Angeles Police Department (“LAPD”). From 1996 until his appointment as LAPD Chief, Mr. Bratton worked in the private sector, including as Senior Consultant to Kroll’s Public Services Safety Group and Crisis
11
Executive Sessions
Executive sessions, which are meetings at which only independent directors are present, are regularly scheduled throughout the year, typically at the time of each regular Board meeting and as frequently as such independent directors deem appropriate. A director designated at each executive session by the non-management or independent directors, as applicable, presides at the executive sessions. If a lead independent director is elected, such person will preside at executive sessions.
Communications with the Board
The Board has adopted a formal process by which stockholders may communicate with the Board or any of its directors. Stockholders or interested parties who wish to communicate with our Board or with an individual director may do so by mail to our Board or the individual director at 39300 Civic Center Dr., Suite 300, Fremont, California, 94538, Attn: Corporate Secretary.
Communications addressed to the Board or to a Board member are distributed to the Board or to any individual director or directors as appropriate. Any such communication is promptly distributed to the director or directors named therein unless such communication is considered, either presumptively or in the reasonable judgment of the Company’s Corporate Secretary, to be improper for submission to the intended recipient or recipients. Examples of communications that would presumptively be deemed improper for submission include, without limitation, solicitations, communications that raise grievances that are personal to the sender, communications that relate to the pricing of the Company’s products or services, communications that do not relate directly or indirectly to the Company and communications that are frivolous in nature.
Board Composition and Refreshment
All Board members are highly engaged and actively involved in overseeing our strategy. We are thoughtful in our approach to Board refreshment, and we engage in Board succession planning. As a result of our approach, our director nominees represent diverse perspectives and experiences and bring core strategic, operating, financial and governance skills and experience to our Board.
As stated in our Corporate Governance Guidelines, the Board will consider diversity, skills and other factors as it deems appropriate. The Board values diversity and recognizes the importance of having unique and complementary backgrounds and perspectives in the board room. The Board endeavors to bring together diverse skills, professional experience, perspectives, and backgrounds that reflect our customer base and the citizens served by our customers, and to guide us in a way that reflects the best interests of all of our stockholders.
As of April 10, 2025, 43% of our board members were women and 57% of our board members were from underrepresented communities.
Board Skills Matrix
The following graph sets forth statistics as to the skills and experiences of our Board members continuing to serve following the Annual Meeting across selected categories we believe are valuable to the oversight of our business. The darker shaded portion of the bar graph represents the number of directors that hold such skills or experience.
15
Board’s Oversight of Strategy
Our Board is engaged and involved in overseeing our long-range strategy, including evaluating key market opportunities, customer and supplier trends and competitive developments. This also includes aspects of our ESG initiatives that relate to our strategy. Our Board’s oversight of risk is another integral component of the Board’s oversight and engagement on strategic matters. Strategy-related matters are regularly discussed at board meetings and, when relevant, at Committee meetings. We also dedicate at least one board meeting every year to an even more intensive review and discussion of our strategic plan. Matters of strategy also inform committee-level discussions of many issues, including enterprise risk. Engagement of the Board on these issues and other matters of strategic importance continues in between meetings, including through updates to the Board on significant items and discussions between the Chief Executive Officer and our Chair on a periodic basis. Each director is expected to and does bring to bear their own talents, insights and experiences to these strategy discussions.
Cybersecurity and Data Privacy Oversight
Our Audit Committee is primarily responsible for oversight of cybersecurity risks including our information security framework, threat assessment, risk mitigation and training efforts. Our management through the information security, legal and engineering departments also help to identify, assess and manage risks from cybersecurity threats and report information about such risks to the Board and Audit Committee through various channels. We also use third-party service providers to assist us from time to time to identify, assess and manage material risks from cybersecurity threats, including for example: professional service firms; threat intelligence service providers; cybersecurity consultants; penetration testing firms; dark web monitoring services; and managed detection and response providers. In addition, the Audit Committee coordinates and confers with our management team, including our Chief Executive Officer, Chief Financial Officer and Vice President of Operational Engineering, to manage our information security framework, cybersecurity policies and other internal controls.
Management and Board Environmental, Social and Governance (ESG) Oversight
Our executive leadership team, comprised of our Chief Executive Officer, Chief Financial Officer, Managing Director, Technologic, and Executive Vice President, Investigative Solutions and executives from across the Company, oversee our efforts to integrate sustainability and corporate responsibility into our strategic planning, risk management and reporting. The Nominating and Corporate Governance Committee oversees aspects of our corporate governance functions and our ESG policies and programs, including recommendations regarding such matters.
Other Board committees also conduct detailed reviews on key ESG topics; for example, our Compensation and Human Capital Committee oversees the Company’s policies and strategies regarding recruiting, retention, workplace culture and wellness. Our Audit Committee assists the Board in monitoring cybersecurity risk.
Code of Business Conduct and Ethics
We have adopted a Code of Business Conduct and Ethics that applies to all of our employees, officers and directors, including those officers responsible for financial reporting. Our Code of Business Conduct and Ethics is available on our website at ir.soundthinking.com. If the Company ever were to amend or waive any provision of its Code of Business Conduct and Ethics that applies to the Company’s principal executive officer, principal financial officer, principal accounting officer or any person performing similar functions, the Company intends to satisfy its disclosure obligations, if any, with respect to any such waiver or amendment by posting such information on its website set forth above rather than by filing a Current Report on Form 8-K. In the case of a waiver for an executive officer or a director, the disclosure required under applicable Nasdaq listing standards also will be made available on our website.
21
Nasim Golzadeh
We entered into an offer letter with Nasim Golzadeh, our current Managing Director, Technologic and Executive Vice President, Investigative Solutions, in February 2019, which set forth the initial terms and conditions of her employment with us. Ms. Golzadeh’s base salary for 2024 was $330,750 per year. Based on input from the Compensation and Human Capital Committee’s consultant, Aon, and review of salaries paid by companies in the Company’s peer group, the Compensation and Human Capital Committee did not approve any increase in Ms. Golzadeh’s salary in 2025. Ms. Golzadeh was eligible to receive a 2024 annual target bonus determined in the discretion of the Board or Compensation and Human Capital Committee. For 2024 and 2025, the Compensation and Human Capital Committee set Ms. Golzadeh’s target bonus amount at 46% of her base salary. Ms. Golzadeh’s employment is at will and may be terminated at any time, with or without cause.
Potential Payments and Benefits upon Termination or Change in Control
The offer letter agreements with each of Mr. Clark, Mr. Stewart and Ms. Golzadeh provide that if we terminate such named executive officer for any reason other than for cause, death or disability, such named executive officer would be entitled to receive the following severance benefits:
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payment of such officer’s then-current base salary for a period of six months following the termination date; and |
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acceleration of six months of vesting of then-unvested options (or, for Ms. Golzadeh only, options and RSUs) held by such executive officer. |
In addition, if we terminate such named executive officer other than for cause, death or disability, or such named executive officer resigns his or her position with us for good reason, immediately prior to or within 12 months of a change in control, then the named executive officer shall also be entitled to receive 100% acceleration of vesting of then-unvested options or held by such named executive officer upon such qualifying termination. Payment of any severance benefits is conditioned on the named executive officer’s timely execution of a general release of claims in our favor.
The acceleration of vesting provisions as described above only govern the options (or, for Ms. Golzadeh only, options and RSUs) held by such executive officer as of the date of their respective offer letter agreements.
Incentive Compensation Recoupment Policy
In November 2023 we implemented our Incentive Compensation Recoupment Policy, a Dodd-Frank Act-compliant clawback policy, as required by SEC rules. Additionally, as a public company, if we are required to restate our financial results due to our material noncompliance with any financial reporting requirements under the federal securities laws as a result of misconduct, the Chief Executive Officer and Chief Financial Officer may be legally required to reimburse our Company for any bonus or other incentive-based or equity-based compensation they receive in accordance with the provisions of section 304 of the Sarbanes-Oxley Act of 2002, as amended.
Non-Employee Director Compensation
The following table sets forth information regarding cash and non-cash compensation earned by or paid to our non-employee directors during the fiscal year ended December 31, 2024:
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Name |
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Fees Earned or Paid in Cash ($) |
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Stock Awards ($)(1)(3) |
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Total ($) |
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William J. Bratton |
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45,000 |
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124,998 |
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$ |
169,998 |
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Deborah A. Grant |
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53,000 |
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124,998 |
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$ |
177,998 |
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Roberta Jacobson |
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48,000 |
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124,998 |
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$ |
172,998 |
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Pascal Levensohn(2) |
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— |
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224,151 |
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$ |
224,151 |
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41
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
We had no transactions that have occurred since January 1, 2023 and to which we were a party, in which the amount involved exceeded or will exceed the lesser of (x) $120,000 or (y) 1% of the average of our total assets at December 31, 2023 and 2024, and in which any of our directors, executive officers or holders of more than 5% of our capital stock, of an affiliate or immediate family member thereof, has or will have a direct or indirect material interest, other than those already described in this Proxy Statement under the heading “Executive and Director Compensation.”
Related-Person Transactions Policy and Procedures
We have a Related-Person Transaction Policy that sets forth our procedures for the identification, review, consideration and approval or ratification of related person transactions. For purposes of our policy only, a related-person transaction is a transaction, arrangement or relationship or any series of similar transactions, arrangements or relationships, in which we and any related person are, were or will be participants in which the amount involves exceeds $120,000. Transactions involving compensation for services provided to the Company as an employee or director are not covered by this policy. A related person is any executive officer, director or beneficial owner of more than 5% of any class of our voting securities, including any of their immediate family members and any entity owned or controlled by such persons.
Under the policy, if a transaction has been identified as a related-person transaction, including any transaction that was not a related-person transaction when originally consummated or any transaction that was not initially identified as a related-person transaction prior to consummation, our management must present information regarding the related-person transaction to our Audit Committee, or, if Audit Committee approval would be inappropriate, to another independent body of our Board, for review, consideration, approval, ratification or rejection. The presentation must include a description of, among other things, the material facts, the interests, direct and indirect, of the related persons, the benefits to us of the transaction and whether the transaction is on terms that are comparable to the terms available to or from, as the case may be, an unrelated third party or to or from employees generally. Under the policy, we will collect information that we deem reasonably necessary from each director, executive officer and significant stockholder to enable us to identify any existing or potential related-person transactions and to effectuate the terms of the policy. Under the policy, the Audit Committee will conduct appropriate continuing oversight of any previously approved or ratified related-person transaction.
In addition, under our Code of Business Conduct and Ethics, our employees and directors have an affirmative responsibility to disclose any transaction or relationship that reasonably could be expected to give rise to a conflict of interest.
In considering related-person transactions, our Audit Committee, or other independent body of our Board, will take into account the relevant available facts and circumstances including, but not limited to:
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whether the related-person transaction is on terms no less favorable than terms generally available to an unaffiliated third party under the same or similar circumstances; and |
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the risks, costs and benefits to us; the extent of the related person’s interest in the transaction. |
The policy requires that, in determining whether to approve, ratify or reject a related-person transaction, our Audit Committee, or other independent body of our Board, must consider, in light of known circumstances, whether the transaction is in, or is not inconsistent with, our best interests and those of our stockholders, as our Audit Committee or other independent body of our Board, determines in the good faith exercise of its discretion.
54
Pay vs Performance Disclosure - USD ($)
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12 Months Ended |
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
Pay vs Performance Disclosure |
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Pay vs Performance Disclosure, Table |
As required by Section 953(a) of the Dodd-Frank Act and Item 402(v) of Regulation S-K, we are providing the following disclosure about the relationship between executive compensation actually paid for our principal executive officer, or PEO and average compensation actually paid to non-PEO named executive officers, or Non-PEO NEOs and certain financial performance of the Company. As a smaller reporting company, we are permitted and have elected to provide scaled pay versus performance disclosure. For further information regarding our compensation philosophy and how we seek to align executive compensation with the Company’s performance, please refer to the “Executive Compensation” section above. The following table presents the pay versus performance information for our named executive officers. The amounts set forth below have been calculated in accordance with Item 402(v) of Regulation S-K. Use of the term “compensation actually paid” is required by the SEC’s rules and, as a result of the calculation methodology required by the SEC, such amounts differ from compensation actually received by the individuals and the compensation decisions described in this Proxy Statement. Our Compensation and Human Capital Committee did not consider the compensation actually paid calculations below in making its pay decisions for any of the years shown.
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Summary Compensation Table Total for PEO ($) (1) |
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Compensation Actually Paid to PEO ($) (2) |
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Average Summary Compensation Table Total for Non-PEO NEOs ($) (3) |
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Average Compensation Actually Paid to Non-PEO NEOs ($) (4) |
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Value of Initial Fixed $100 Investment Based On Total Stockholder Return ($) (5) |
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2024 |
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4,986,576 |
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873,234 |
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1,794,801 |
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709,653 |
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44 |
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|
|
(9,180,000 |
) |
2023 |
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4,708,087 |
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3,010,978 |
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1,469,708 |
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1,232,663 |
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68 |
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(2,718,000 |
) |
2022 |
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4,800,187 |
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7,136,331 |
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1,480,307 |
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1,994,023 |
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90 |
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6,385,000 |
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(1) |
The dollar amounts reported in column (b) are the amounts of total compensation reported for Mr. Clark (our Chief Executive Officer, or PEO) for 2024 and 2023 in the “Total” column of the Summary Compensation Table. Refer to “Executive Compensation—Summary Compensation Table” in this Proxy Statement. |
(2) |
The dollar amounts reported in column (c) represent the amount of “compensation actually paid” to Mr. Clark, as computed in accordance with Item 402(v) of Regulation S-K. The dollar amounts do not reflect the actual amount of compensation earned by or paid to Mr. Clark during the applicable year. In accordance with the requirements of Item 402(v) of Regulation S-K, the following adjustments were made to Mr. Clark’s total compensation for each year to determine the compensation actually paid: |
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Reported Summary Compensation Table Total for PEO ($) |
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Reported Value of Equity Awards (a) ($) |
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Equity Award Adjustments (b) ($) |
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Compensation Actually Paid to PEO ($) |
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2024 |
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4,986,576 |
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(4,137,624 |
) |
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24,282 |
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873,234 |
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2023 |
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4,708,087 |
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(4,250,287 |
) |
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2,553,178 |
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3,010,978 |
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2022 |
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4,800,187 |
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(3,998,672 |
) |
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6,334,816 |
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7,136,331 |
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(a) |
The grant date fair value of equity awards represents the total of the amounts reported in the “Stock Awards” and “Option Awards” columns in the Summary Compensation Table for the applicable year. |
(b) |
The equity award adjustments for each applicable year include the addition (or subtraction, as applicable) of the following: (i) the year-end fair value of any equity awards granted in the applicable year that are outstanding and unvested as of the end of the year; (ii) the amount of change as of the end of the applicable year (from the end of the prior fiscal year) in fair value of any awards granted in prior years that are outstanding and unvested as of the end of the applicable year; (iii) for awards that are granted and vest in same applicable year, the fair value as of the vesting date; (iv) for awards granted in prior years that vest in the applicable year, the amount equal to the change as of the vesting date (from the end of the prior fiscal year) in fair value; and (v) for awards granted in prior years that are determined to fail to meet the applicable vesting conditions during the applicable year, a deduction for the amount equal to the fair value at the end of |
|
the prior fiscal year. The valuation assumptions used to calculate fair values did not materially differ from |
|
those disclosed at the time of grant. The amounts deducted or added in calculating the equity award adjustments are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year End Fair Value of Equity Awards Granted in the Fiscal Year that
|
|
|
Change in Fair Value from the End of the Prior Fiscal Year to the End of the Fiscal Year of Unvested Equity Awards Granted in Prior Fiscal Years that were Outstanding and Unvested at the End of the Fiscal Year ($) |
|
|
Date of Equity Awards Granted in the Fiscal Year that Vested in the Fiscal Year ($) |
|
|
Change in Fair Value from the End of the Prior Fiscal Year to the Vesting Date of Equity Awards Granted in Prior Fiscal Years that Vested in the Fiscal Year ($) |
|
|
Fair Value at the End of the Prior Fiscal Year of Equity Awards that Failed to Meet Vesting Conditions in the Fiscal Year ($) |
|
|
Total Equity Award Adjustments ($) |
|
2024 |
|
|
2,792,241 |
|
|
|
(1,982,416 |
) |
|
|
279,553 |
|
|
|
(1,065,096 |
) |
|
|
— |
|
|
|
24,282 |
|
2023 |
|
|
3,729,617 |
|
|
|
(1,126,494 |
) |
|
|
609,009 |
|
|
|
(658,954 |
) |
|
|
— |
|
|
|
2,553,178 |
|
2022 |
|
|
5,048,119 |
|
|
|
256,676 |
|
|
|
1,155,307 |
|
|
|
(125,286 |
) |
|
|
— |
|
|
|
6,334,816 |
|
(3) |
The dollar amounts reported in column (d) represent the average of the amounts reported for our Non-PEO NEOs as a group in the “Total” column of the Summary Compensation Table in each applicable year. The Non-PEO NEOs included for purposes of calculating the average amounts in each applicable year are Mr. Stewart and Ms. Golzadeh. |
(4) |
The dollar amounts reported in column (e) represent the average amount of “compensation actually paid” to our Non-PEO NEOs as a group, as computed in accordance with Item 402(v) of Regulation S-K for each applicable year. The dollar amounts do not reflect the actual average amount of compensation earned by or paid to our Non-PEO NEOs as a group during the applicable year. In accordance with the requirements of Item 402(v) of Regulation S-K, the following adjustments were made to average total compensation for our Non-PEO NEOs as a group for each year to determine the compensation actually paid, using the same methodology described above in Note (2): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Reported Summary Compensation Table Total for Non-PEO NEOs ($) |
|
|
Average Reported Value of Equity Awards ($) |
|
|
Average Equity Award Adjustments(a) ($) |
|
|
Average Compensation Actually Paid to
|
|
2024 |
|
|
1,794,801 |
|
|
|
(1,293,015 |
) |
|
|
207,867 |
|
|
|
709,653 |
|
2023 |
|
|
1,469,708 |
|
|
|
(1,066,408 |
) |
|
|
829,363 |
|
|
|
1,232,663 |
|
2022 |
|
|
1,480,307 |
|
|
|
(1,000,789 |
) |
|
|
1,514,505 |
|
|
|
1,994,023 |
|
(a) |
The amounts deducted or added in calculating the total average equity award adjustments are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Fiscal Year End Fair Value of Equity
Awards Granted in the Fiscal Year that
|
|
|
Average Change in Fair Value from the End of the Prior Fiscal Year to the End of the Fiscal Year of Unvested Equity Awards Granted in Prior Fiscal Years that were Outstanding and Unvested at the End of the Fiscal Year ($) |
|
|
Average Fair Value as of Vesting Date of Equity Awards Granted in the Fiscal Year that Vested in the Fiscal Year ($) |
|
|
Average Change in Fair Value from the End of the Prior Fiscal Year to the Vesting Date of Equity Awards Granted in Prior Fiscal Years that Vested in the Fiscal Year ($) |
|
|
Average Fair Value at the End of the Prior Fiscal Year of Equity Awards that Failed to Meet Vesting Conditions in the Fiscal Year ($) |
|
|
Total Average Equity Award Adjustments ($) |
|
2024 |
|
|
872,591 |
|
|
|
(486,148 |
) |
|
|
87,350 |
|
|
|
(265,926 |
) |
|
|
— |
|
|
|
207,867 |
|
2023 |
|
|
1,112,621 |
|
|
|
(264,074 |
) |
|
|
152,218 |
|
|
|
(171,403 |
) |
|
|
— |
|
|
|
829,363 |
|
2022 |
|
|
1,188,160 |
|
|
|
100,518 |
|
|
|
270,581 |
|
|
|
(44,754 |
) |
|
|
— |
|
|
|
1,514,505 |
|
(5) |
Cumulative TSR is calculated by dividing the sum of the cumulative amount of dividends for the measurement period, assuming dividend reinvestment, and the difference between the Company’s share price at the end and the beginning of the measurement period by the Company’s share price at the beginning of the measurement period. |
(6) |
The dollar amounts reported represent the amount of net income (loss) reflected in the Company’s audited financial statements for the applicable year. |
|
|
|
Named Executive Officers, Footnote |
(3) |
The dollar amounts reported in column (d) represent the average of the amounts reported for our Non-PEO NEOs as a group in the “Total” column of the Summary Compensation Table in each applicable year. The Non-PEO NEOs included for purposes of calculating the average amounts in each applicable year are Mr. Stewart and Ms. Golzadeh. |
|
|
|
PEO Total Compensation Amount |
$ 4,986,576
|
$ 4,708,087
|
$ 4,800,187
|
PEO Actually Paid Compensation Amount |
$ 873,234
|
3,010,978
|
7,136,331
|
Adjustment To PEO Compensation, Footnote |
(2) |
The dollar amounts reported in column (c) represent the amount of “compensation actually paid” to Mr. Clark, as computed in accordance with Item 402(v) of Regulation S-K. The dollar amounts do not reflect the actual amount of compensation earned by or paid to Mr. Clark during the applicable year. In accordance with the requirements of Item 402(v) of Regulation S-K, the following adjustments were made to Mr. Clark’s total compensation for each year to determine the compensation actually paid: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported Summary Compensation Table Total for PEO ($) |
|
|
Reported Value of Equity Awards (a) ($) |
|
|
Equity Award Adjustments (b) ($) |
|
|
Compensation Actually Paid to PEO ($) |
|
2024 |
|
|
4,986,576 |
|
|
|
(4,137,624 |
) |
|
|
24,282 |
|
|
|
873,234 |
|
2023 |
|
|
4,708,087 |
|
|
|
(4,250,287 |
) |
|
|
2,553,178 |
|
|
|
3,010,978 |
|
2022 |
|
|
4,800,187 |
|
|
|
(3,998,672 |
) |
|
|
6,334,816 |
|
|
|
7,136,331 |
|
(a) |
The grant date fair value of equity awards represents the total of the amounts reported in the “Stock Awards” and “Option Awards” columns in the Summary Compensation Table for the applicable year. |
(b) |
The equity award adjustments for each applicable year include the addition (or subtraction, as applicable) of the following: (i) the year-end fair value of any equity awards granted in the applicable year that are outstanding and unvested as of the end of the year; (ii) the amount of change as of the end of the applicable year (from the end of the prior fiscal year) in fair value of any awards granted in prior years that are outstanding and unvested as of the end of the applicable year; (iii) for awards that are granted and vest in same applicable year, the fair value as of the vesting date; (iv) for awards granted in prior years that vest in the applicable year, the amount equal to the change as of the vesting date (from the end of the prior fiscal year) in fair value; and (v) for awards granted in prior years that are determined to fail to meet the applicable vesting conditions during the applicable year, a deduction for the amount equal to the fair value at the end of |
|
the prior fiscal year. The valuation assumptions used to calculate fair values did not materially differ from |
|
those disclosed at the time of grant. The amounts deducted or added in calculating the equity award adjustments are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year End Fair Value of Equity Awards Granted in the Fiscal Year that
|
|
|
Change in Fair Value from the End of the Prior Fiscal Year to the End of the Fiscal Year of Unvested Equity Awards Granted in Prior Fiscal Years that were Outstanding and Unvested at the End of the Fiscal Year ($) |
|
|
Date of Equity Awards Granted in the Fiscal Year that Vested in the Fiscal Year ($) |
|
|
Change in Fair Value from the End of the Prior Fiscal Year to the Vesting Date of Equity Awards Granted in Prior Fiscal Years that Vested in the Fiscal Year ($) |
|
|
Fair Value at the End of the Prior Fiscal Year of Equity Awards that Failed to Meet Vesting Conditions in the Fiscal Year ($) |
|
|
Total Equity Award Adjustments ($) |
|
2024 |
|
|
2,792,241 |
|
|
|
(1,982,416 |
) |
|
|
279,553 |
|
|
|
(1,065,096 |
) |
|
|
— |
|
|
|
24,282 |
|
2023 |
|
|
3,729,617 |
|
|
|
(1,126,494 |
) |
|
|
609,009 |
|
|
|
(658,954 |
) |
|
|
— |
|
|
|
2,553,178 |
|
2022 |
|
|
5,048,119 |
|
|
|
256,676 |
|
|
|
1,155,307 |
|
|
|
(125,286 |
) |
|
|
— |
|
|
|
6,334,816 |
|
|
|
|
Non-PEO NEO Average Total Compensation Amount |
$ 1,794,801
|
1,469,708
|
1,480,307
|
Non-PEO NEO Average Compensation Actually Paid Amount |
$ 709,653
|
1,232,663
|
1,994,023
|
Adjustment to Non-PEO NEO Compensation Footnote |
(4) |
The dollar amounts reported in column (e) represent the average amount of “compensation actually paid” to our Non-PEO NEOs as a group, as computed in accordance with Item 402(v) of Regulation S-K for each applicable year. The dollar amounts do not reflect the actual average amount of compensation earned by or paid to our Non-PEO NEOs as a group during the applicable year. In accordance with the requirements of Item 402(v) of Regulation S-K, the following adjustments were made to average total compensation for our Non-PEO NEOs as a group for each year to determine the compensation actually paid, using the same methodology described above in Note (2): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Reported Summary Compensation Table Total for Non-PEO NEOs ($) |
|
|
Average Reported Value of Equity Awards ($) |
|
|
Average Equity Award Adjustments(a) ($) |
|
|
Average Compensation Actually Paid to
|
|
2024 |
|
|
1,794,801 |
|
|
|
(1,293,015 |
) |
|
|
207,867 |
|
|
|
709,653 |
|
2023 |
|
|
1,469,708 |
|
|
|
(1,066,408 |
) |
|
|
829,363 |
|
|
|
1,232,663 |
|
2022 |
|
|
1,480,307 |
|
|
|
(1,000,789 |
) |
|
|
1,514,505 |
|
|
|
1,994,023 |
|
(a) |
The amounts deducted or added in calculating the total average equity award adjustments are as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Fiscal Year End Fair Value of Equity
Awards Granted in the Fiscal Year that
|
|
|
Average Change in Fair Value from the End of the Prior Fiscal Year to the End of the Fiscal Year of Unvested Equity Awards Granted in Prior Fiscal Years that were Outstanding and Unvested at the End of the Fiscal Year ($) |
|
|
Average Fair Value as of Vesting Date of Equity Awards Granted in the Fiscal Year that Vested in the Fiscal Year ($) |
|
|
Average Change in Fair Value from the End of the Prior Fiscal Year to the Vesting Date of Equity Awards Granted in Prior Fiscal Years that Vested in the Fiscal Year ($) |
|
|
Average Fair Value at the End of the Prior Fiscal Year of Equity Awards that Failed to Meet Vesting Conditions in the Fiscal Year ($) |
|
|
Total Average Equity Award Adjustments ($) |
|
2024 |
|
|
872,591 |
|
|
|
(486,148 |
) |
|
|
87,350 |
|
|
|
(265,926 |
) |
|
|
— |
|
|
|
207,867 |
|
2023 |
|
|
1,112,621 |
|
|
|
(264,074 |
) |
|
|
152,218 |
|
|
|
(171,403 |
) |
|
|
— |
|
|
|
829,363 |
|
2022 |
|
|
1,188,160 |
|
|
|
100,518 |
|
|
|
270,581 |
|
|
|
(44,754 |
) |
|
|
— |
|
|
|
1,514,505 |
|
|
|
|
Compensation Actually Paid vs. Total Shareholder Return |
Compensation Actually Paid and Cumulative TSR The chart below shows the relationship between the compensation actually paid to our PEO and the average compensation actually paid to our Non-PEO NEOs, on the one hand, to the Company’s cumulative total stockholder return, or TSR, over the three years presented in the table, on the other.
|
|
|
Compensation Actually Paid vs. Net Income |
Compensation Actually Paid and Net Income (Loss) The chart below shows the relationship between the compensation actually paid to our PEO and the average compensation actually paid to our Non-PEO NEOs, on the one hand, to the Company’s net income (loss), on the other.
|
|
|
Total Shareholder Return Amount |
$ 44
|
68
|
90
|
Net Income (Loss) |
$ (9,180,000)
|
(2,718,000)
|
6,385,000
|
PEO Name |
Mr. Clark
|
|
|
PEO | Aggregate Grant Date Fair Value of Equity Award Amounts Reported in Summary Compensation Table |
|
|
|
Pay vs Performance Disclosure |
|
|
|
Adjustment to Compensation, Amount |
$ (4,137,624)
|
(4,250,287)
|
(3,998,672)
|
PEO | Equity Awards Adjustments, Excluding Value Reported in Compensation Table |
|
|
|
Pay vs Performance Disclosure |
|
|
|
Adjustment to Compensation, Amount |
24,282
|
2,553,178
|
6,334,816
|
PEO | Year-end Fair Value of Equity Awards Granted in Covered Year that are Outstanding and Unvested |
|
|
|
Pay vs Performance Disclosure |
|
|
|
Adjustment to Compensation, Amount |
2,792,241
|
3,729,617
|
5,048,119
|
PEO | Year-over-Year Change in Fair Value of Equity Awards Granted in Prior Years That are Outstanding and Unvested |
|
|
|
Pay vs Performance Disclosure |
|
|
|
Adjustment to Compensation, Amount |
(1,982,416)
|
(1,126,494)
|
256,676
|
PEO | Vesting Date Fair Value of Equity Awards Granted and Vested in Covered Year |
|
|
|
Pay vs Performance Disclosure |
|
|
|
Adjustment to Compensation, Amount |
279,553
|
609,009
|
1,155,307
|
PEO | Change in Fair Value as of Vesting Date of Prior Year Equity Awards Vested in Covered Year |
|
|
|
Pay vs Performance Disclosure |
|
|
|
Adjustment to Compensation, Amount |
(1,065,096)
|
(658,954)
|
(125,286)
|
PEO | Prior Year End Fair Value of Equity Awards Granted in Any Prior Year that Fail to Meet Applicable Vesting Conditions During Covered Year |
|
|
|
Pay vs Performance Disclosure |
|
|
|
Adjustment to Compensation, Amount |
0
|
0
|
0
|
Non-PEO NEO | Aggregate Grant Date Fair Value of Equity Award Amounts Reported in Summary Compensation Table |
|
|
|
Pay vs Performance Disclosure |
|
|
|
Adjustment to Compensation, Amount |
(1,293,015)
|
(1,066,408)
|
(1,000,789)
|
Non-PEO NEO | Equity Awards Adjustments, Excluding Value Reported in Compensation Table |
|
|
|
Pay vs Performance Disclosure |
|
|
|
Adjustment to Compensation, Amount |
207,867
|
829,363
|
1,514,505
|
Non-PEO NEO | Year-end Fair Value of Equity Awards Granted in Covered Year that are Outstanding and Unvested |
|
|
|
Pay vs Performance Disclosure |
|
|
|
Adjustment to Compensation, Amount |
872,591
|
1,112,621
|
1,188,160
|
Non-PEO NEO | Year-over-Year Change in Fair Value of Equity Awards Granted in Prior Years That are Outstanding and Unvested |
|
|
|
Pay vs Performance Disclosure |
|
|
|
Adjustment to Compensation, Amount |
(486,148)
|
(264,074)
|
100,518
|
Non-PEO NEO | Vesting Date Fair Value of Equity Awards Granted and Vested in Covered Year |
|
|
|
Pay vs Performance Disclosure |
|
|
|
Adjustment to Compensation, Amount |
87,350
|
152,218
|
270,581
|
Non-PEO NEO | Change in Fair Value as of Vesting Date of Prior Year Equity Awards Vested in Covered Year |
|
|
|
Pay vs Performance Disclosure |
|
|
|
Adjustment to Compensation, Amount |
(265,926)
|
(171,403)
|
(44,754)
|
Non-PEO NEO | Prior Year End Fair Value of Equity Awards Granted in Any Prior Year that Fail to Meet Applicable Vesting Conditions During Covered Year |
|
|
|
Pay vs Performance Disclosure |
|
|
|
Adjustment to Compensation, Amount |
$ 0
|
$ 0
|
$ 0
|