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Mark Goldston

Executive Chairman at Beachbody Company
Executive
Board

About Mark Goldston

Mark Goldston, 70, has served as Executive Chairman of BODi since June 2023 and joined the board in 2023. He holds a B.S. from The Ohio State University and an MBA from Northwestern University’s Kellogg School. Company performance context: BODi reported a 2024 net loss of $71.6M and cumulative TSR value-of-$100 at $5.19 in 2024 (vs. $1.30 in 2023, $4.13 in 2022), while executing a 2024 pivot from MLM to a single-level affiliate model to streamline costs and broaden distribution .

Past Roles

OrganizationRoleYearsStrategic impact/notes
The Goldston GroupChairman, CEO, FounderNov 2013 – PresentVenture capital and strategic advisory leadership
Athletic Propulsion LabsGeneral PartnerMar 2009 – PresentLuxury performance athletic footwear GP
Javergo Partners, LLCCo‑Founder and General PartnerMar 2020 – PresentStrategic advisory firm co‑founded
United Online (incl. NetZero)Chairman & CEOMar 1999 – Nov 2013Led a former public Internet access company and its predecessor

External Roles

OrganizationRoleYearsNotes
TuneGOBoard member, strategic advisor, investorMar 2015 – PresentTechnology platform for music artists

Fixed Compensation

Period/Effective dateBase salary ($)Target bonusActual bonus paidNotes
FY 20240Not eligible0No cash comp as Executive Chairman
Mar 1, 2025 onward500,000Not disclosedN/AApproved Feb 2025 for expanded role
Upon payoff of Blue Torch term loan700,000Not disclosedN/AAutomatic increase when debt is paid in full

Performance Compensation

Annual bonus program (for context; Goldston not eligible in 2024)

| Metric | Weighting | Target | Actual | Payout | Notes | |---|---:|---:|---:|---| | Pre‑Bonus EBITDA | Not disclosed | Company goal set by Comp Committee | Below threshold | 0% for participating NEOs | Goldston was not eligible for 2024 bonus program |

Long‑term incentives – Stock options (Inducement grant)

InstrumentGrant dateSharesExercise priceVestingExpiration2024 accounting impactKey modifications/terms
Non‑qualified option (Inducement Plan)Jun 15, 2023477,661$6.4325% on each anniversary of Jun 15, 2023 (time‑based)Jun 14, 2033$686,315 incremental fair value in 2024 (repricing + amendment) Sep 19, 2024: removed performance vesting; now time‑based 25%/yr . Nov 13, 2024: company implemented underwater option repricing program (included Mr. Goldston) with number of shares, vesting and expiry unchanged . Termination by Co. w/o cause or for good reason: option vests in full; CIC: option vests in full immediately prior to change in control (post‑amendment) .

Vesting schedule: 25% on 6/15/2024, 6/15/2025, 6/15/2026, 6/15/2027, subject to continued service .

Equity Ownership & Alignment

ItemDetail
Beneficial ownership (Apr 4, 2025)119,416 Class A options exercisable or vesting within 60 days; beneficial ownership <1%
Options outstanding (12/31/2024)119,416 exercisable; 358,245 unexercisable; exercise price $6.43; expiry 6/14/2033
Vested vs unvestedVested/exercisable: 119,416; Unvested: 358,245 (time‑based)
Pledging/hedgingProhibited by company Insider Trading Compliance Policy
Ownership guidelinesNot disclosed in 2025 proxy
Director payExecutive Chairman did not receive director compensation in 2024 (non‑employee director program excludes execs)

Employment Terms

  • Status: At‑will Executive Chairman under offer letter dated June 15, 2023; initial package excluded base salary, bonus and health/welfare benefits .
  • Separation/CIC economics on option:
    • Company termination without cause or resignation for good reason: full vesting of the Goldston Option, subject to release .
    • Change in control: full vesting immediately prior to CIC (post Sep 2024 amendment), subject to continued service until immediately prior to CIC (single‑trigger on the option) .
  • 2024 equity changes:
    • Option amendment (Sep 19, 2024): removed performance vesting; now time‑based 25% per year from 6/15/2023 .
    • Company option repricing (effective Nov 13, 2024): reduced exercise prices for certain underwater options, including Mr. Goldston; number of shares, vesting, and expirations unchanged; produced $686,315 incremental 2024 fair value for him (combined with amendment impact) .
  • Clawback: Compensation recovery policy applicable to Section 16 officers for incentive compensation received on/after Oct 2, 2023; applies to time‑vesting and performance‑vesting equity .

Board Governance

AttributeDetail
RoleExecutive Chairman; Director since 2023
Committee membershipsNone (Audit: Lundy Chair; Compensation: Van de Bunt Chair; Nominating & Governance: Heller Chair)
AttendanceAll directors attended ≥75% of board and committee meetings in 2024
IndependenceBoard determined several directors are independent under NYSE/SEC; Goldston (executive) is not independent
Leadership structureCEO and Executive Chairman roles separated; Board states this structure distinguishes governance and management functions
Controlled companyBODi is a NYSE “controlled company” (CEO Carl Daikeler controls majority voting power) and uses exemption for the nominating & governance committee independence requirement
Say‑on‑Pay 202499% approval of NEO compensation

Compensation Structure Analysis

  • Shift away from options for annual grants in 2024 (toward RSUs) underscores lower risk equity design for most NEOs; Goldston was not eligible for annual equity grants .
  • Option repricing in 2024 and removal of performance vesting from Goldston’s inducement option are governance red flags that weaken pay‑for‑performance linkage and can create retention‑independent value; both applied to him .
  • Guaranteed cash increased in 2025 with a $500k salary starting Mar 1, 2025, stepping to $700k upon debt payoff, raising the fixed pay mix despite 2024’s $0 salary .

Risk Indicators & Red Flags

  • Option repricing and elimination of performance conditions on the Executive Chairman’s largest award .
  • Single‑trigger CIC acceleration on the option could create windfall outcomes in a transaction .
  • Controlled company governance and partial independence exemptions raise oversight concerns (though board separates CEO/Chair) .
  • No pledging/hedging allowed (mitigates alignment risks) .

Vesting Schedules and Potential Selling Pressure

  • Key unlock dates: ~25% of the Goldston Option each June 15 through 2027 (time‑based), creating potential liquidity windows around those anniversaries; 119,416 already exercisable as of 12/31/2024 .
  • Repricing of underwater options in Nov 2024 increases probability of in‑the‑money exercises if shares trade above revised strikes (number of shares, vesting, and expiries unchanged) .

Performance & Track Record

  • Tenure outcomes context: BODi’s cumulative TSR value of $100 was $5.19 in 2024 (vs. $1.30 in 2023, $4.13 in 2022) and net income was a loss of $71.6M in 2024; these are company‑level metrics across management, not solely attributable to the Executive Chairman .
  • Strategic pivot executed in late 2024 from MLM to an affiliate model with a 33% workforce reduction to reduce costs and broaden distribution .

Director Compensation (Context)

  • Non‑employee directors receive $45,000 annual retainer, with committee chair/member fees, and ~$150,000 annual RSU grants (some 2024 grants split 50% RSUs/50% cash); Executive Chairman received no board fees in 2024 .

Equity Ownership & Alignment Table (detail)

MetricAmount
Options exercisable (12/31/2024)119,416
Options unexercisable (12/31/2024)358,245
Exercise price$6.43
Option expiryJun 14, 2033
Beneficial ownership (Apr 4, 2025)<1% of Class A; 119,416 options exercisable or vesting within 60 days
Pledged sharesProhibited by policy

Board Service History and Roles

  • Executive Chairman and Director since 2023; no committee assignments; board/committee attendance for all directors ≥75% in 2024. Company is a NYSE “controlled company” and uses exemptions for nominating/governance committee independence; CEO/Executive Chairman roles separated .

Investment Implications

  • Alignment: Large time‑based inducement option ties value to share price, but 2024 modifications (repricing; removal of performance conditions) weaken performance linkage and introduce event‑risk optionality (single‑trigger CIC) .
  • Retention: 4‑year vesting and new 2025 salary support retention; however, full acceleration upon no‑cause termination or good reason reduces “stickiness” of equity .
  • Trading/flow signals: Annual time‑based vesting dates (June 15 each year) and repriced options increase the probability of exercise/sales near vesting windows if shares are above strike .
  • Governance: Controlled company status and partial independence exemptions, coupled with option repricing and metric removal, elevate governance risk; counterbalanced by a clear CEO/Executive Chairman split and a functioning committee structure with independent chairs .