Kimball Shill
CricutAbout Kimball Shill
Cricut’s Chief Financial Officer since April 1, 2022, Kimball Shill (age 61 as of March 31, 2025) previously led Operations and Quality at Cricut and earlier served as CEO of Color by Amber; he holds an MBA (Wharton), JD (University of Pennsylvania Law), and BA (BYU) . During his CFO tenure, Cricut’s revenue declined from $886.3M (2022) to $712.5M (2024) while net income rose from $60.7M (2022) to $62.8M (2024) as the mix shifted toward higher-margin platform revenue . Company TSR since IPO stood at $38.73 versus peer group $121.58 as of 2024 in the pay-versus-performance disclosure .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Cricut, Inc. | EVP Operations; earlier SVP Operations & Quality | May 2019–Mar 2021 | Led global supply chain and company operations; foundation for later CFO role |
| Color by Amber | Chief Executive Officer | Jun 2015–Dec 2018 | Ran PE-backed jewelry firm; general management and scaling experience |
| Cricut, Inc. | Chief Financial Officer | Apr 1, 2022–Present | Finance leadership through mix shift; cost/operating leverage focus |
External Roles
- No public-company directorships or committee roles disclosed for Shill .
Fixed Compensation
- 2024 base salary increased mid-year: $337,480 effective Apr 1, 2024; raised to $421,850 effective Dec 1, 2024 .
- Target annual bonus opportunity (2024): $170,633 (dollar target disclosed; percent not disclosed) .
- No special executive perquisites, pension/SERP, tax gross-ups; executives participate in broad-based benefits only .
Multi-year reported compensation (NEO Summary Compensation Table):
| Metric (USD) | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary | $288,000 | $321,375 | $341,265 |
| Stock Awards (Grant-Date FV) | $9,145,750 | $1,433,600 | $3,837,000 |
| Non-Equity Incentive Plan (Annual Bonus) | $36,346 | $56,041 | $191,331 |
| All Other Compensation | $933 | $970,692 | $641,310 |
| Total | $9,471,029 | $2,781,707 | $5,010,906 |
Notes:
- 2023–2024 “All Other Compensation” largely reflects dividend-equivalent RSUs created by special and recurring dividends per the equity plan and special/recurring dividend disclosures .
Performance Compensation
2024 annual cash bonus metrics, weights, targets, and actuals (Shill):
| Metric | Weight | Target | Actual (2024) | Payout Impact |
|---|---|---|---|---|
| Operating Income (FY) | 50% | $74.0M | $76.1M (≈110% of target) | Above target; contributed positively to payout |
| Global Machine POS (units) | 10% | 1.25M | 1.06M (below threshold) | No payout for this component |
| Engaged Paid Subscribers (Q4 YoY definition) | 10% | -1% | -1.3% (≈91% of target) | Below target; partial payout if above threshold |
| Subscriptions Gross Profit (Q4) | 10% | $70.0M | $68.4M (≈78% of target) | Below target; partial payout if above threshold |
| Project Materials Cost Reduction | 20% | -9% | -19.6% (200% of target) | Above max; contributed positively |
- 2024 bonus paid: $191,331 .
- 2023 bonus was driven solely by Q4 Subscription Gross Profit beat; other metrics below threshold; paid $56,041 .
Equity incentives and vesting design:
- 2024 Annual RSUs: 180,000 RSUs granted June 27, 2024; vests 25% annually beginning May 15, 2025 (time-based) .
- 2024 LTIP PRSUs: 500,000 target RSUs granted July 1, 2024; vesting contingent on company Operating Income achieved over four consecutive quarters by deadlines:
- 30% tranche: ≥$149M by Q2 2028; 70% tranche: ≥$240M by Q2 2029; vested tranches settle on the next quarterly vest date (Feb 15, May 15, Aug 15, Nov 15) after certification .
- Change-in-control treatment includes performance measurement through CIC and immediate vesting of tranches if CIC Operating Income exceeds tranche targets (subject to plan terms) .
- 2023 Annual RSUs: 140,000 RSUs granted March 21, 2023; vests 25% annually beginning Feb 15, 2024 (time-based) .
Grant details and values:
| Grant | Date | Instrument | Shares/Target | Grant-Date FV |
|---|---|---|---|---|
| Annual RSU | 3/21/2023 | RSU (time-based) | 140,000 | $1,433,600 |
| Annual RSU | 6/27/2024 | RSU (time-based) | 180,000 | $1,062,000 |
| LTIP PRSU | 7/1/2024 | PRSU (performance) | 500,000 target | $2,775,000 |
Equity Ownership & Alignment
- Beneficial ownership (as of Mar 31, 2025): 777,413 Class A shares (1.50% of Class A); no Class B held .
- Outstanding equity (Dec 31, 2024):
- Unvested time-based RSUs: 195,152 (includes dividend equivalents) .
- Unearned performance RSUs (LTIP): 551,467 .
- Stock options outstanding: 3,038 and 24,848 options exercisable; strike $18.25; expire Mar 24, 2031 (IPO-option conversions; exercise price adjusted for special dividends) .
- Insider policy prohibits hedging and pledging; executives are barred from pledging company securities or holding in margin accounts .
- Executive stock ownership guidelines not disclosed (director minimums of 25,000 shares are separate) .
Ownership snapshot and overhang:
| Item | Amount |
|---|---|
| Beneficial Class A shares (3/31/2025) | 777,413 |
| % of Class A outstanding | 1.50% |
| Unvested RSUs (time-based) at 12/31/2024 | 195,152 |
| Unearned PRSUs at 12/31/2024 | 551,467 |
| Options (exercisable) | 27,886 total across lines |
| Option exercise price / expiry | $18.25; 3/24/2031 |
Note: “All Other Compensation” in 2023–2024 largely reflects dividend-equivalent RSUs from special/recurring dividends in 2023–2024 under plan mechanics (not cash perquisites) .
Employment Terms
- Employment is at-will (executive letters; CEO has a separate agreement) .
- Executive Change in Control and Severance Plan (double trigger): if terminated without cause or for good reason within 3 months before to 18 months after a change in control, severance equals 12 months base salary plus 100% of target annual bonus, and 100% acceleration of outstanding equity at target for performance awards (subject to agreements) . No 280G tax gross-up (best-net cutback applies) .
- Estimated CIC-related payments (as of 12/31/2024):
- Involuntary Not for Cause/Good Reason (CIC window): $3,094,757 total ($421,850 base salary; $2,672,907 equity) .
- Death/Disability: $2,672,907 (equity acceleration) .
- Clawback policy not specifically disclosed; hedging/pledging prohibited .
Say-on-Pay & Governance Context
- 2024 Say-on-Pay support: ~98.45% of votes cast in favor, reinforcing shareholder backing for program structure .
- Cricut is a “controlled company” under Nasdaq; compensation committee comprises representatives of the controlling holder; no outside compensation consultant is engaged; committee emphasizes bespoke, objective-driven pay design .
Investment Implications
- Alignment/Retention: Large unvested equity (~746.6k RSUs/PRSUs at 12/31/2024) and four-times-per-year vest cadence (Feb 15/May 15/Aug 15/Nov 15 for performance tranches; annual 25% for RSUs) create strong retention hooks through 2028–2029; however, vesting can introduce periodic supply from 10b5‑1 administration once shares settle .
- Pay-for-Performance: 2024 bonus tied to five operating KPIs; strong Operating Income and Materials Cost Reduction offset weaker unit sell-through and subscription GP—Shill’s $191k payout reflects this balanced scorecard approach .
- Performance Levers in LTIP: 2024 PRSUs hinge on ambitious multi-quarter Operating Income thresholds ($149M and $240M across four-quarter windows). Achieving these would indicate sustained profitability inflection; failure would zero out substantial upside (500k target PRSUs), directly linking realized pay to durable earnings performance .
- Governance Risk: As a controlled company with a non-independent comp committee and no external consultant, investors should monitor award sizing and special dividends’ impact on equity mechanics (option price adjustments; dividend-equivalent RSUs) for dilution and perceived pay inflation, even though mechanics follow plan terms .
- Capital Returns Optics: Special and recurring dividends created significant dividend-equivalent RSUs, inflating “All Other Compensation” optics without adding cash perks; investors should normalize this when assessing realized pay and dilution over time .
- Performance Track Record: Under Shill’s CFO tenure, revenue contracted while net income improved in 2024, suggesting cost discipline and mix improvement; however, equity value creation (TSR) has lagged peers since IPO, keeping pressure on execution against LTIP profitability hurdles .
Insider selling and pledging: No pledging permitted by policy; Form 4 trading cadence not disclosed here. Monitor upcoming vest dates (time-based: May 15 annually; performance: quarterly upon certification) for potential 10b5‑1 activity .