Michael Lee
About Michael Lee
Michael Lee is Chief Financial Officer of Arhaus, Inc., appointed effective May 12, 2025 (age 52). He previously served as CFO and President of Operations and Supply Chain at Ste. Michelle Wine Estates (2022–2025), EVP & CFO at Canopy Growth (2019–2021), and held leadership roles at Constellation Brands (2013–2019), most recently SVP, Business Transformation . As context for incentive alignment, Arhaus highlights Demand, Adjusted EBITDA, and Net Income as primary performance measures; 2024 results included Net Income of $69M and Adjusted EBITDA of $133M (vs. $125M and $203M in 2023), and the company-reported TSR value of a $100 investment stood at $75.97 in 2024 (vs. $92.58 in 2023) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Arhaus, Inc. | Chief Financial Officer | 2025–present | Corporate finance leadership for a public omnichannel home furnishings retailer |
| Ste. Michelle Wine Estates | CFO and President of Operations and Supply Chain | 2022–2025 | Finance and operations/supply chain leadership at a premium wine company |
| Canopy Growth Corporation | EVP & Chief Financial Officer | 2019–2021 | Public-company CFO experience in consumer/cannabis sector |
| Constellation Brands, Inc. | Senior leadership roles (most recently SVP, Business Transformation) | 2013–2019 | Transformation and finance-oriented leadership at a global beverage company |
External Roles
No external public company directorships or committee roles were disclosed for Michael Lee in the appointment 8‑K; the 2025 proxy’s director listings do not include him (he is not a director) .
Fixed Compensation
| Element | Terms |
|---|---|
| Base Salary | $550,000 (subject to annual review) |
| Target Annual Cash Incentive | 60% of base salary for 2025; payout determined by Compensation Committee based on performance goals |
| Sign‑On Bonus | $250,000; subject to clawback if service is less than 12 months |
| Relocation | One‑time $10,000 payment |
| Commuting Reimbursement | $3,000 per month through July 2026 |
Performance Compensation
| Incentive Type | Metric(s) | Weighting | Target/Grant | Actual/Payout | Vesting / Performance Period |
|---|---|---|---|---|---|
| Annual Cash Incentive (2025) | To be set by Compensation Committee | Not disclosed | 60% of base salary | Not disclosed | Annual performance year |
| Long‑Term Equity (RSUs) | Time‑based (service) | Not applicable | 400,000 RSUs grant | N/A (time‑based) | Vests over five‑year period (specific cadence not disclosed) |
| Company Performance Measures (context) | Demand; Adjusted EBITDA; Net income | N/A | Key measures linking pay and performance | N/A | Used in pay‑versus‑performance disclosures |
| 2024 AIP Metrics (company precedent) | Adjusted EBITDA (before bonus) and demand (for NEOs) | Not disclosed | Threshold/Target/Max established annually | Paid per achievement; 2024 disclosed for NEOs | Annual plan design example |
Equity Ownership & Alignment
- Initial equity: 400,000 RSUs granted at hire, vesting over five years; no options or PSUs were disclosed for his 2025 new‑hire package .
- Beneficial ownership: Not reported for Lee in the 2025 proxy ownership table (record date March 17, 2025) as his appointment was effective May 12, 2025 .
- Hedging/Pledging: Arhaus prohibits directors and executive officers from hedging and pledging company securities; short sales and derivative transactions are also prohibited .
- Trading controls: Executives must pre‑clear trades; are subject to quarterly blackout periods; and 10b5‑1 plans require pre‑clearance and notice procedures .
- Clawback: Dodd‑Frank‑compliant recoupment policy effective October 3, 2023; in 2024 restatements, Compensation Committee concluded no recovery was required as performance metrics used for comp were unaffected .
Employment Terms
| Term | Details |
|---|---|
| Start Date | Appointed April 22, 2025; effective May 12, 2025 |
| Employment Status | Eligible to participate in company severance and benefit plans consistent with other executive officers |
| Severance Framework (Company practice) | For executive officers (other than CEO), proxy describes severance eligibility; illustrative precedent shows six months base salary and six months COBRA upon qualifying termination, and double‑trigger vesting for unassumed RSUs/PSUs around a change in control (60 days before to 24 months after) |
| Prior CFO Transition | Former CFO Dawn Phillipson resigned effective January 15, 2025; her historical CFO agreement provided severance equal to 50% of base salary (floor $340,000) and six months COBRA upon qualifying termination; she received no severance upon resignation . |
Investment Implications
- Pay‑for‑performance alignment: New‑hire package is a balanced mix of at‑risk annual incentive (60% of salary) and multi‑year RSUs (400,000 over five years), directly linking realized value to sustained service and Company equity performance . Company‑designated performance measures emphasize Demand, Adjusted EBITDA, and Net Income, supporting line‑of‑sight financial targets for bonus design .
- Retention and selling pressure: Five‑year RSU vesting, a 12‑month sign‑on clawback, and commuting support through July 2026 encourage near‑term retention. Prohibitions on hedging/pledging and strict blackout/pre‑clearance procedures temper opportunistic selling and reduce pledging‑related risk .
- Change‑in‑control protections: The 2021 plan provides protective double‑trigger vesting for unassumed RSUs/PSUs in proximity to a CIC, which limits forfeiture risk and aligns executives during strategic events; restricted shares from pre‑IPO structures also vest upon a CIC (context from proxy) .
- Governance and shareholder support: Compensation Committee (independent, advised by Aon) uses a retail‑focused peer set to inform pay decisions . Say‑on‑pay support has been strong (approx. 98% approval in 2024); in 2025, the advisory vote passed with 909,938,353 “For” vs. 1,613,000 “Against” .
- Execution risk and leadership transition: CFO transition occurred after the prior CFO’s January 2025 resignation; Lee brings CFO experience across consumer categories and transformation roles, but near‑term performance cadence will be evaluated against Company’s core measures (Demand, Adjusted EBITDA, Net Income) following a 2024 EBITDA/downshift environment (2024 Net Income $69M; Adjusted EBITDA $133M) .