Hunter Middleton
8X8 INC /DE/About Hunter Middleton
Hunter Middleton (age 58) is Chief Product Officer at 8x8 (EGHT) since August 2021, after serving as SVP, Product & Design (March 2018–August 2021). He previously led Product Management at Jive Software and earlier led the Google Apps Enterprise product team; he holds a Ph.D. in Physics (Princeton) and a master’s in management (Kellogg/Northwestern) . Under 8x8’s current strategy, FY2025 revenue was $715M (-2% YoY), GAAP operating profit reached $15.2M (2% margin), and cash flow from operations (CFFO) was $64M; service revenue from the core base (ex-Fuze) grew 3% YoY while prior relative-TSR PSU programs failed to vest, reflecting stock underperformance despite operating progress .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| 8x8, Inc. | Chief Product Officer | Aug 2021–present | Leads platform roadmap and AI features across Platform for CX; tenure spans return to GAAP operating profit and strong CFFO . |
| 8x8, Inc. | SVP, Product & Design | Mar 2018–Aug 2021 | Scaled product and design functions; foundation for subsequent CPO role . |
| Jive Software | VP & Head of Product Management | Feb 2016–Sep 2017 | Enterprise collaboration product leadership . |
| Google (Google for Work Systems) | Head of Product Management | N/A | Led Google Apps Enterprise product team . |
External Roles
| External role | Notes |
|---|---|
| None disclosed | No outside public company directorships or external roles disclosed in the 2025 proxy . |
Fixed Compensation
| Item | FY2024 | FY2025 |
|---|---|---|
| Base salary ($) | 406,539 | 420,000 (unchanged vs FY2024 plan; base-rate table shows $420k) |
| Target bonus (%) | Not disclosed | Annual cash incentive suspended for FY2025; no target bonus set . |
| Actual cash bonus ($) | 350,000 (one-time retention in FY2024) | 0 (no annual incentive for FY2025) |
Performance Compensation
Long-term Incentive Mix and Grants (FY2025)
| Component | Grant date | Amount | Vesting / Metrics |
|---|---|---|---|
| RSUs | Sep 15, 2024 | 180,000 shares | 1/3 on first anniversary; remainder in 8 equal quarterly installments over 2 years, subject to continued service . |
| PSUs (2025 EPP) | Sep 15, 2024 | 180,000 target shares | Metric: cumulative cash flow from operations (CFFO) over 3-year period (4/1/24–3/31/27). FY2025 CFFO of $63M → 42% of target earned and vested (capped at 66% in year 1) within 75 days post-FY end; board certified in May 2025 . |
| Aggregate grant-date fair value | Sep 15, 2024 | $676,800 | RSUs $338,400; PSUs $338,400 (ASC 718, target outcome assumed) . |
PSU Design Details and Payouts
| Plan | Metric | Weighting | Threshold | Target | Actual FY2025 result | Payout/Vesting |
|---|---|---|---|---|---|---|
| 2025 EPP (granted 9/15/24) | CFFO (cum.) | 100% | $50M → 33% vest | $150M → 100% vest | $63M (FY2025) | 42% earned; vests within 75 days (May 2025 for FY2025 tranche) . |
| 2024 EPP (granted 6/15/23) | Absolute stock price | 100% | +70% ($6.56) → 33% | +130% ($8.88) → 100% | Below threshold | 0% earned to date . |
| 2023 EPP (granted 6/15/22) | Relative TSR vs S&P Software & Services | 50% tranches | 25th pct → 50% | 50th pct → 100% | First tranche: 0.76 pct (below threshold) | 0% earned for 6/15/22–6/15/24 tranche; second tranche measured at 6/15/25 (pending at proxy date) . |
Shares Earned (FY2025)
| Award | Target (#) | Performance achieved | Shares earned |
|---|---|---|---|
| 2025 EPP PSU (CFFO) | 180,000 | 42% | 75,600 . |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial ownership | 286,198 shares; <1% of outstanding . |
| RSUs expected to vest within 60 days (as of May 29, 2025) | 38,460 shares (near-term vesting supply) . |
| Unvested RSUs and market value (3/31/25, $2.00/sh) | 21,793 ($43,586); 83,334 ($166,668); 180,000 ($360,000) → Total $570,254 . |
| Unvested/Unearned PSUs and payout value at $2.00/sh (3/31/25) | 43,584 ($87,168) – 2022 TSR PSUs; 200,000 ($400,000) – 2024 stock-price PSUs; 104,400 ($208,800) – 2025 PSU remainder at 100% target less first tranche . |
| Ownership guidelines | Executives must hold 1× initial base salary in stock within 5 years; all NEOs currently within accumulation period . |
| Hedging/pledging | Prohibited for employees and directors (policy bans short sales, hedging, and pledging) . |
| Clawback | Plan- and policy-based recovery provisions compliant with Nasdaq/Exchange Act Rule 10D-1 . |
Employment Terms
| Topic | Terms applicable to Hunter Middleton |
|---|---|
| Employment | At-will; covered by Executive Change-in-Control and Severance Policy (amended May 13, 2021). For Middleton and CEO, “greater-of” applies between Prior Policy and current Policy . |
| Change-in-control (double-trigger) | Upon CIC + qualifying termination: cash severance equal to 100% of base salary; 100% acceleration of time-based equity; performance equity measured as of CIC for performance, then accelerated upon qualifying termination; benefits continuation for 12 months. FY2025 illustrative values for Middleton: cash $420,000; equity value $570,254; benefits $31,331; total $1,021,585 (no target bonus in FY2025) . |
| Non-CIC severance | Cash severance: 75% of base salary; benefits continuation for 6 months. FY2025 illustrative values for Middleton: cash $315,000; benefits $23,499; total $338,499 . |
| Triggers | No single-trigger acceleration; performance awards deem performance at CIC but service vesting requires termination under CIC policy . |
| Non-compete/solicit | Not specifically disclosed in proxy; standard at-will terms and Company policies apply . |
Compensation Structure Analysis (signals)
- Mix and leverage: 50% RSUs / 50% PSUs for FY2025 long-term awards aligns pay with multi-year CFFO outcomes; annual cash incentive suspended in FY2025 (tight cost discipline and cash focus) .
- Payout stringency: FY2022 and half of FY2023 TSR PSUs failed to vest; FY2024 stock-price PSUs tracking below threshold; FY2025 CFFO PSUs partially vested (42%), indicating linkage to cash generation amid equity underperformance .
- Dilution discipline: SBC and RSU grant date value reduced materially since FY2023; shift of most non-executive comp to cash reduced dilution risk (supports shareholder alignment) .
Performance & Track Record (company context during CPO tenure)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Cash Flow from Operations ($K) | (14,066) | 34,680 | 48,786 | 78,985 | 63,554 |
- FY2025 revenue $715M (-2% YoY); GAAP operating profit $15.2M (2% margin) with $64M operating cash flow; service revenue from core 8x8 base +3% YoY .
- Product execution highlights include AI features (chat summarization, real-time transcription, Agent Assist), expanded APIs, and data platform enhancements; AI-powered solutions sales +60% YoY; new products +14% YoY .
- Prior PSU TSR hurdles missed (forfeitures), evidencing relative stock underperformance versus peers despite operational improvements .
Compensation Peer Group (benchmarking)
Peer set used for executive benchmarking (unchanged for FY2025): Alteryx, Bandwidth, Blackbaud, Commvault Systems, Domo, Edgio, Everbridge, Five9, LivePerson, Ooma, Q2 Holdings, Rimini Street, RingCentral, Upland Software, Yext, Zuora .
Say-on-Pay & Shareholder Feedback
- Say-on-pay approval: ~98% support at the 2024 annual meeting .
- Program changes from engagement: increased emphasis on revenue and nnMRR in FY2024 bonus design; suspended FY2025 annual cash incentives; FY2025 PSUs tied to CFFO; FY2026 cash plan reinstated with service revenue, net new annual subscription revenue, and operating income metrics .
Equity Vesting/Coverage and Insider Supply Considerations
- Near-term supply: 38,460 RSUs expected to vest within 60 days of 5/29/2025 (record date) .
- FY2025 PSU tranche: 75,600 PSUs earned and time-vested in May 2025 after certification, increasing potential share availability upon settlement .
- Policy mitigants: Prohibitions on hedging/pledging and robust clawback reduce misalignment/hedge-driven sell pressure .
Employment Terms (policies and protections)
- Double-trigger CIC; no tax gross-ups; no single-trigger acceleration; repricing prohibited without stockholder approval; robust clawback and ownership guidelines for NEOs .
Investment Implications
- Alignment: High proportion of at-risk equity and stringent PSU hurdles (TSR previously forfeited; CFFO now central) tie outcomes to durable cash generation; ownership guidelines and hedging/pledging bans reinforce alignment .
- Retention risk: CPO holds sizable unvested RSUs/PSUs (RSUs ~$570K at $2/sh; multiple PSU programs outstanding), with double-trigger protections; FY2025 cash incentives were suspended but FY2026 plan reinstated, balancing retention and cost discipline .
- Trading signals: Near-term RSU vesting (38,460) and FY2025 PSU tranche settlement (75,600) create episodic supply windows; prior PSU forfeitures reduce incremental supply from legacy TSR grants .
- Execution risk: Company revenue declined modestly in FY2025, though operating profit returned and CFFO remained strong; PSU linkage to CFFO focuses on cash quality amid share-price volatility, but underperformance on TSR/price hurdles underscores sensitivity to market/competitive dynamics .
Sources: 8x8, Inc. 2025 DEF 14A (June 13, 2025) — executive bios, compensation, awards, policies, severance/CIC tables, ownership tables, and performance discussions .