Rafe Colburn
ETSYAbout Rafe Colburn
Rafe Colburn is Etsy’s Chief Technology Officer, effective May 5, 2025; he is 53 and will lead the marketplace engineering teams from Etsy’s Brooklyn HQ, reporting to CEO Josh Silverman . He previously served as Depop’s Chief Technology & Product Officer and Chief Product Officer, and earlier spent ~10 years at Etsy in senior engineering roles across ads, marketing technology, seller experience, trust & safety, localization, and support; he also established Etsy’s Data Engineering team and has authored numerous articles and books on web development . Etsy’s recent performance context: 2024 revenue rose 2.2% to $2.8B, Adjusted EBITDA increased 3.6% to $781.5M (27.8% margin), while net income declined 1.4% to $303.3M; management is focused on reigniting GMS growth and engagement .
Company performance snapshot
| Metric | FY 2023 | FY 2024 |
|---|---|---|
| Revenue ($USD Billions) | $2.7 | $2.8 (+2.2% YoY) |
| Net Income ($USD Millions) | $307.6 | $303.3 (−1.4% YoY) |
| Adjusted EBITDA ($USD Millions) | $754.6 (implied) | $781.5 (+3.6% YoY) |
| Adjusted EBITDA Margin (%) | 27.2 (implied) | 27.8 |
| Total GMS ($USD Billions) | N/A | $12.6 (Etsy marketplace $10.9B) |
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Depop (Etsy subsidiary) | Chief Technology & Product Officer | Mar 2023–May 2025 | Scaled technology team; transformed customer experience to app-based, discovery-centric |
| Depop | Chief Product Officer | Nov 2021–Mar 2023 | Led product & design; built high-performing product organization |
| Etsy | Vice President of Engineering | Oct 2019–Nov 2021 | Led engineering across ads, marketing tech, seller experience, trust & safety, localization; established data engineering; oversight of payments/checkout, compliance, international, member services |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| IDology (identity verification) | Principal Engineer | N/A | Built custom applications; senior technical leadership |
| Various consulting firms | Consultant | N/A | Delivered custom software; authored articles/papers/books on web development |
Fixed Compensation
| Component | 2025 | Notes |
|---|---|---|
| Base Salary | Not disclosed | Colburn is not a Named Executive Officer (NEO) for 2024 CD&A; specific cash compensation not in the proxy |
| Target Bonus % | Not disclosed | Executive cash incentive program exists but NEO-only details disclosed; Rafe not covered for 2024 |
| Actual Bonus Paid | Not disclosed | Not reported for Colburn in 2025 proxy |
Performance Compensation
Etsy’s long-term incentives for executives include PSUs and RSUs; PSUs are earned on four equally weighted metrics (GMS 25%, Revenue 25%, Adjusted EBITDA Margin 25%, Relative TSR 25%). Targets for forward periods are not disclosed; payouts range 0–200% of target with specified vesting schedules .
| Metric | Weighting | Target | Actual | Payout Range | Performance Period | Vesting |
|---|---|---|---|---|---|---|
| GMS | 25% | Not disclosed (competitive sensitivity) | Not disclosed until period complete | 0–200% of target | Two years (to Dec 31, 2025) | 50% on Apr 1, 2026; 50% on Apr 1, 2027 (subject to service) |
| Revenue | 25% | Not disclosed | Not disclosed until period complete | 0–200% | Two years (to Dec 31, 2025) | 50% on Apr 1, 2026; 50% on Apr 1, 2027 |
| Adjusted EBITDA Margin | 25% | Not disclosed | Not disclosed until period complete | 0–200% | Two years (to Dec 31, 2025) | 50% on Apr 1, 2026; 50% on Apr 1, 2027 |
| Relative TSR vs Nasdaq Composite constituents | 25% | Not disclosed | Not disclosed until period complete | 0–200% | Three years (to Dec 31, 2026) | 100% on Apr 1, 2027 (subject to service) |
Notes:
- Annual executive equity awards typically granted March 15; mix has been 70% RSUs/30% PSUs for non-CEO executives and 50%/50% for CEO .
Equity Ownership & Alignment
| Item | Policy / Status |
|---|---|
| Beneficial Ownership (Colburn) | Not disclosed in 2025 proxy (not an NEO/director as of FY 2024 CD&A) |
| Stock Ownership Guidelines | Other executive officers: lesser of 1× base salary or 4,400 shares; compliance due within 5 years of becoming an executive (or by 12/31/2027 for those subject since 4/12/2022); counting vested RSUs/PSUs; unvested RSUs/options excluded |
| Holding Requirement if below guideline | Retain 50% of shares acquired from equity awards (net of tax/exercise) until compliant |
| Hedging/Pledging | Prohibited for employees, executive officers, and directors |
| Clawback | Adopted policy consistent with SEC/Nasdaq for incentive compensation in event of financial restatement; filed as Exhibit 97 to Form 10-K |
Employment Terms
Etsy maintains an executive severance plan covering executive officers, with double-trigger change-in-control protection and restrictive covenants .
| Scenario | Cash Severance | Pro‑Rata Bonus | Health Benefits | Equity Treatment | Trigger | Conditions |
|---|---|---|---|---|---|---|
| Qualifying Termination (without cause or for good reason, outside CIC window) | 12 months’ base salary for executive officers other than CEO | Pro‑rata at 100% of target if after month 3 | COBRA reimbursement for 12 months | Unvested RSUs/PSUs forfeited unless other provisions apply | Single trigger (termination event) | Release of claims; non‑solicit, non‑compete, confidentiality, non‑disparagement, cooperation |
| Qualifying Change in Control Termination (double trigger: termination within 3 months before or 12 months after CIC) | 12 months’ base salary for executive officers other than CEO | Pro‑rata at 100% of target if after month 3 | COBRA reimbursement for 12 months | Full vesting of outstanding RSUs and stock options; any earned PSUs vest | Double trigger (CIC + termination) | Same as above |
Notes:
- CEO receives 18 months’ salary under CIC scenario; other executives receive 12 months .
- “Cause” and “Good Reason” are defined in the plan/offer letters and filed exhibits to the Form 10‑K .
Investment Implications
- Strong pay-for-performance alignment: Executive PSUs balance marketplace scale (GMS), top-line (Revenue), bottom-line (Adjusted EBITDA Margin), and stockholder returns (Relative TSR), with 0–200% payout range and multi-year performance periods, promoting durable execution over optics .
- Retention mechanics: Multi-year PSU vesting (2026–2027) and March 15 grant cadence encourage tenure continuity; double-trigger CIC protection plus forfeiture outside CIC reduces “pay for failure” risk while making retention competitive .
- Skin-in-the-game guardrails: Ownership guidelines (≤1× salary or 4,400 shares), mandatory holding if below guideline, and strict bans on hedging/pledging materially reduce misalignment/forced selling risks for senior executives, including CTOs .
- Execution upside: Colburn’s history scaling Depop’s tech, driving an app-led discovery experience, and leading critical Etsy engineering domains, combined with stated focus on AI to personalize and engage buyers, is a constructive setup for product velocity and buyer frequency initiatives that management is prioritizing to reignite GMS growth .
- Monitoring items: Colburn was not an NEO for 2024, so individual pay and holdings were not disclosed; track upcoming grants on/around March 15 and Form 4 filings post-appointment to assess insider selling pressure and progress toward ownership guideline compliance .
CEO succession and broader leadership transitions in late 2024–2025 were deliberate to strengthen product, marketing, and technology execution; Colburn’s CTO appointment fits that plan and aligns with Etsy’s need to improve shopping experience and buyer engagement amid recent GMS headwinds .