Tony Xu
DoorDashAbout Tony Xu
Tony Xu, 40, is DoorDash’s co-founder, Chief Executive Officer, Chair, and director, serving as CEO and director since May 2013; he holds a B.S. in Industrial Engineering and Operations Research from UC Berkeley and an MBA from Stanford GSB . In 2024, DoorDash delivered revenue of $10.7B (+24% YoY), its first full year of positive GAAP net income ($123M), Adjusted EBITDA of $1.9B, FCF of $1.8B, 2.58B total orders, and $80.2B GOV; Pay vs. Performance disclosures emphasize Year-End Stock Price as the key measure linking compensation actually paid (CAP) to performance . Xu’s pay-for-performance is dominated by a 2020 CEO Performance Award of 10,379,000 PSUs that vest only upon achieving stringent 180‑day stock price hurdles ($187.60 to $501) within a 7‑year window and are subject to a 2‑year post‑vest holding requirement; no tranches vested in 2024 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| DoorDash | Co-Founder, Chief Executive Officer, Chair, and Director | 2013–present | Led scale-up to 2.58B orders, $80.2B GOV, $10.7B revenue in 2024; first full year positive GAAP net income |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| Meta Platforms, Inc. | Director | Since Jan 2022 | Public company board service |
Fixed Compensation
| Metric (USD) | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Base Salary | $300,000 | $300,000 | $300,000 |
| Cash Bonus | $0 (no short-term incentive program) | $0 (no short-term incentive program) | $0 (no short-term incentive program) |
| Stock Awards (Grant-Date FV) | $0 | $0 | $0 |
| All Other Compensation | $300 | $16,275 | $18,518 |
| Total Reported Compensation | $300,065 | $316,275 | $318,518 |
Notes:
- Since 2021, DoorDash has not provided cash bonuses or other short-term incentives to NEOs .
Performance Compensation
CEO 2020 Performance Award (PSU/RSU structure)
| Attribute | Detail |
|---|---|
| Grant | 11/23/2020 |
| Shares Granted | 10,379,000 |
| Performance Period | 6/9/2022 to 11/23/2027 |
| Vesting Conditions | Nine tranches vest on achievement of stock price goals measured by a consecutive 180‑day average; also requires time-based service |
| Hurdles | First vesting threshold $187.60; full vest at $501.00 (both 180‑day averages) |
| Post‑Vest Holding | After-tax shares from the award must be held for at least 2 years |
| 2024 Outcome | No tranches were earned in 2024 |
| Outstanding Value Marker | Unearned PSUs shown with year-end market value of $1,741,077,250 at $167.75 close (12/31/2024) |
Annual equity and metrics
- No additional equity awards were granted to Xu in 2024, consistent with the long-term 2020 award design .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial Ownership (as of 3/1/2025) | 1,500 Class A shares; 11,283,325 Class B shares (41.8% of Class B) |
| Voting Proxies | Xu holds irrevocable proxies over 15,748,398 Class B shares held by co-founders Andy Fang and Stanley Tang, equating to 62.0% of Class B |
| Total Voting Power | 57.6% (including proxies) |
| Options Outstanding | 1,752,484 options, fully vested, $7.16 strike, expiring 10/9/2028 |
| Options Exercisable within 60 Days (footnote) | 1,644,140 Class B shares subject to options |
| 2024 Option Exercises | 1,984,746 shares exercised; $269,544,969 value realized |
| Hedging/Pledging | Prohibited for officers and directors (no short sales, options, derivatives, pledging, or margin accounts) |
| Clawback | 2023 policy compliant with Rule 10D‑1; 3-year lookback on incentive-based compensation upon restatement |
Employment Terms
| Topic | Terms |
|---|---|
| Employment Status | At-will (per employment letter) |
| Severance (Non‑CIC) | 12 months base salary; lump-sum COBRA gross-up; 12 months accelerated vesting of time-based RSUs |
| Change-in-Control (Double Trigger) | Lump sum 12 months base salary; lump-sum COBRA gross-up; 100% vesting of time-based RSUs; performance awards deemed at 100% target, except 2020 CEO Performance Award which follows its agreement |
| Illustrative Potential Payments (as of 12/31/2024) | Non‑CIC: $300,000 salary + $49,929 benefits; CIC+Qual. Term: $300,000 salary + $49,929 benefits; RSU acceleration for Xu not applicable given award structure |
| 280G | No excise tax gross-ups; best‑net cutback applies |
Board Governance
- Role and independence: Xu is combined CEO and Chair; the board appointed a Lead Independent Director (Shona L. Brown) in Feb 2021 to balance governance; only independent directors serve on audit, compensation, and nominating committees .
- Board composition: 10 directors; 7 qualified as independent under Nasdaq as of April 25, 2025 .
- Committees:
- Audit: Brown, Lin, Mertz (Chair); Lin and Mertz designated financial experts .
- Compensation (Leadership Development, Inclusion & Compensation): Blackburn, Lin (Chair), Still .
- Nominating & Corporate Governance: Doerr (Chair), Piacentini .
- Attendance: In 2024, each director attended at least 75% of board and applicable committee meetings; all then‑directors attended the 2024 annual meeting .
- Director pay: Employee directors (including Xu) receive no additional compensation for board service .
Compensation Governance, Peer Group, and Say‑on‑Pay
- Compensation design: Base salaries intentionally below market; NEO pay primarily in long-term RSUs; no cash bonuses since 2021 .
- Independent advisor: Semler Brossy; independence affirmed under Nasdaq standards .
- Say-on-Pay: >96% approval at 2024 annual meeting; no significant program changes in 2024 .
- Peer group: 2024 peer set included comps such as Airbnb, Block, Booking Holdings (Bookings.com B.V.), Coinbase, eBay, Expedia, Instacart (Maplebear), PayPal, Pinterest, Roblox, Shopify, Snap, Spotify, Stripe, Toast, Uber; 2025 update removed Chewy .
Performance Summary
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Revenues (USD) | $6,583,000,000 * | $8,635,000,000 * | $10,722,000,000 * |
| EBITDA (USD) | -$748,000,000* | -$322,000,000* | $295,000,000* |
*Values retrieved from S&P Global.
Additional 2024 disclosures: Total orders 2.58B; GOV $80.2B; Adjusted EBITDA $1.9B; FCF $1.8B; 42M MAUs in Dec 2024; first full year positive GAAP net income ($123M) .
Risk Indicators & Red Flags
- Alignment positives: No hedging/pledging; clawback policy; no 280G gross-ups; double-trigger CIC; majority independent board and committees .
- Concentrated control: Xu holds 57.6% total voting power via Class B and irrevocable proxies from co-founders, reducing external influence but supporting long-term stability .
- Realized liquidity: Significant option exercises in 2024 with $269.5M value realized; watch for potential selling pressure around vesting/exercise windows (policy requires pre-clearance/blackouts) .
Vesting Schedules and Outstanding Awards (Selected)
| Award | Shares/Strike | Vesting/Triggers | Status/Key Dates |
|---|---|---|---|
| 2020 CEO Performance Award | 10,379,000 PSUs | Nine tranches; 180‑day price hurdles ($187.60 to $501); service condition; 2‑year post‑vest hold | Performance window 6/9/2022–11/23/2027; no tranches earned in 2024 |
| Option (10/10/2018) | 1,752,484 at $7.16; exp. 10/9/2028 | Fully vested and exercisable | Exercised 1,984,746 shares in 2024; $269.5M value realized |
Investment Implications
- Pay-for-performance leverage is high: Xu’s realizable upside is tied to stringent, long-dated stock price hurdles with mandatory holding, aligning with long-term TSR but offering no near-term annual equity refresh; no 2024 grant further concentrates incentives into the 2020 plan .
- Retention risk appears low given significant voting control (57.6%) and founder status, while governance checks exist via a Lead Independent Director and fully independent key committees to mitigate combined CEO/Chair risks .
- Potential supply overhang should be monitored: 2024 option exercises generated substantial realized value; future vesting from the 2020 award could add issuance if price hurdles are achieved, though the 2‑year post‑vest hold reduces immediate float impact .
- Shareholder support for the program remains strong (96% SoP in 2024), and the company eschews cash bonuses and 280G gross-ups, with robust anti-hedging/pledging and clawback policies, signaling pay discipline .