Wayfair unveils performance-driven pay package for CEO

Wayfair (NYSE:W) shares are getting a modest boost into Friday’s open after the company announced a new compensation package for CEO Niraj Shah that includes incentives for the company’s performance.

According to a filing with the U.S. Securities and Exchange Commission, Shah will now receive 5M performance stock units (PSU) split in 6 tranches over a decade if the company achieves certain goals. These include stock price appreciation to $176 to as much as $679 to receive the final tranche. This assumes a premium in the company’s share price of 100% to 675% over the period and $75B in incremental market value at the final tranche.

The award also includes a one-year post-vesting holding period for tranches two through six and requires Shah to remain as CEO through each vesting tranche. The plan becomes effective on September 19.  

“The CEO award is designed to retain and incentivize Mr. Shah in light of his consistent and unmatched leadership since co-founding the company,” the filing states.

The compensation plan requires the approval of the company’s shareholders.

Since the beginning of the year, Wayfair (NYSE:W) shares have nearly doubled in value compared to a 13% increase in the S&P 500.