Tyler Sloat
FreshworksAbout Tyler Sloat
Tyler Sloat, age 51, is Freshworks’ Chief Operating Officer (since August 5, 2024) and Chief Financial Officer (since April 2020). He holds a B.A. in Economics from Boston College and an M.B.A. from Stanford Graduate School of Business . During his tenure, Freshworks grew 2024 revenue to $720.4M (+21% YoY), improved non-GAAP operating margin to 13.8% (from 7.5% in 2023), and increased free cash flow to $146.0M, with EX ARR >$400M and CX ARR >$360M .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Zuora, Inc. | Chief Financial Officer | 2010–2020 | Scaled subscription software finance function ahead of and following public-company phase |
| Freshworks Inc. | Chief Financial Officer | 2020–present | Led finance through post-IPO scaling; added COO remit in 2024 |
External Roles
- No external directorships or committee roles disclosed for Sloat in the latest proxy .
Fixed Compensation
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Base Salary (actual paid) | $418,750 | $420,000 | $465,000 |
| Base Salary level (as set for year) | — | — | $480,000 (raised ~14.3% YoY) |
| Target Annual Cash Bonus | — | $290,000 | $360,000 |
Notes
- 2024 compensation strategy targets 75th percentile of peer total target cash for retention and competitiveness .
Performance Compensation
Annual Cash Bonus – 2024 design and outcomes
- Plan metrics and weights: Net New ARR (70%) and Non-GAAP Operating Margin (30%) with quarterly targets; OM has a threshold (target minus 1.5ppt) to earn; Net New ARR uses a tiered multiplier with interpolation .
- Quarterly targets and attainment (company-level):
| Metric | Q1 Target | Q1 Actual | Q2 Target | Q2 Actual | Q3 Target | Q3 Actual | Q4 Target | Q4 Actual |
|---|---|---|---|---|---|---|---|---|
| Net New ARR ($M) | 25.7 | 22.5 | 29.5 | 24.4 | 30.5 | 21.2 | 36.2 | 31.9 |
| Non-GAAP Op Margin (%) | 9.4% | 13.4% | 4.3% | 5.6% | 9.2% | 12.8% | 11.6% | 20.2% |
- Sloat’s 2024 bonus earned: $193,678 (56.5% of target variable pay) .
Long-term Equity Incentives – 2024 grants and PRSU payout
- Program mix: 70% time-based RSUs (quarterly vest over 4 years) + 30% PRSUs tied to 1-year revenue (70% weight) and free cash flow (30%); PRSUs: 1/3 vests Mar 1, 2025 after certification, remainder vests quarterly over 2 years .
- 2024 PRSU targets vs results:
| Performance Metric | Target ($M) | Actual ($M) | Interpolated Achievement | Weight | PRSU Payout (Total) |
|---|---|---|---|---|---|
| Revenue | 712.0 | 698.1 | 92.7% | 70% | |
| Free Cash Flow | 122.5 | 152.6 | 124.6% | 30% | |
| Combined Payout | 102.3% (used for earned shares) |
- Sloat 2024 equity detail:
| Grant (3/1/2024 unless noted) | Shares/Units | Vesting |
|---|---|---|
| Annual RSU | 195,926 | Equal quarterly over 4 years |
| Special Refresh RSU | 186,596 | Equal quarterly over 2 years |
| Target PRSU | 83,968 | 1/3 on 3/1/2025 (post-cert), remainder quarterly over 2 years |
| PRSU Earned | 85,899 (102.3% of target) | Same schedule as above |
- 2024 stock awards grant-date fair value to Sloat: $9,451,087 .
Equity Ownership & Alignment
- Beneficial ownership (as of March 31, 2024):
| Security | Shares Beneficially Owned |
|---|---|
| Class A Common Stock | 141,079 |
| Class B Common Stock | 593,725 |
- Anti-hedging and anti-pledging: Directors and officers are prohibited from short sales, options/derivatives, hedging, margin, and pledging of company stock .
- Stock ownership guidelines (adopted Dec 2024): Other NEOs (incl. Sloat) must hold Freshworks stock equal to 3x base salary; counting includes vested/unvested time-based RSUs; compliance required within 5 years (end of the calendar year of the 5th anniversary); as of Dec 31, 2024, Covered Individuals were compliant or within time to comply .
- Unvested awards as of Dec 31, 2024 (illustrative detail):
| Award | Unvested/Unearned Shares | Comment |
|---|---|---|
| RSUs (various vintages) | 82,554; 27,517; 216,491; 159,190; 116,623 | Vest schedules per footnotes (annual/quarterly/2-year) |
| PRSUs (earned for 2024) | 83,968 | One-third vests 3/1/2025; remainder quarterly |
- Insider selling programs: Sloat terminated a Rule 10b5-1 plan on Nov 4, 2024 (previously allowing sales up to 500,000 shares through Sep 30, 2025) and adopted a new Rule 10b5-1 plan on May 27, 2025 permitting sales up to 500,000 shares through Aug 31, 2026, indicating potential forward selling supply under pre-set plans .
Employment Terms
- Severance and change-in-control (CoC) economics for Sloat (offer letter framework):
| Scenario | Cash Severance | Bonus Treatment | COBRA | Equity Acceleration |
|---|---|---|---|---|
| Terminated without cause (no CoC) | 6 months base salary | Pro‑rata target bonus | Up to 6 months | Time‑based vesting accelerated for shares vesting in next 6 months |
| Terminated without cause during CoC period | 12 months base salary | 100% of target bonus | Up to 12 months | Time‑based requirements accelerated (as of termination date) |
| Resignation for good reason during CoC period | 6 months base salary | 50% of target bonus | Up to 6 months | Time‑based vesting accelerated for next 12 months |
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Disclosure examples of indicative value (based on 12/31/24 price $16.17) show equity acceleration and cash amounts for each scenario (e.g., $11.13M equity acceleration for “termination without cause with CoC” and $0.84M cash; see full table for details) .
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Policies supporting alignment and controls:
- Clawback: 36‑month lookback for incentive comp upon accounting restatement (adopted Oct 2023) .
- Insider trading policy and trading windows updated Oct 23, 2024; prohibits hedging/pledging and details blackout/10b5‑1 usage .
Investment Implications
- Pay-for-performance alignment: 2024 cash bonus emphasized Net New ARR and margins, while PRSUs tied to revenue and free cash flow resulted in a near-target 102.3% payout—consistent with revenue growth (+21%) and strong FCF execution—suggesting incentives aligned with profitable growth .
- Retention vs dilution: Significant 2024 equity grants (time-based and performance-based) increase retention hooks, with multi-year quarterly vesting and PRSUs extending into 2027; however, sizable vested/unvested inventory implies ongoing dilution over the vest horizon .
- Selling pressure watchlist: The adoption of a new 10b5‑1 plan to sell up to 500,000 shares (through Aug 2026) after terminating a prior plan in late 2024 points to potential stock supply over the next 4–6 quarters, albeit pre-programmed and window-compliant .
- Governance safeguards: Stock ownership guidelines (3x salary for NEOs), strict anti-hedging/pledging, and a Dodd-Frank–conformant clawback mitigate misalignment and risk-taking concerns .
- Downside protection: Severance terms are moderate (6–12 months salary, targeted bonus proportions, and time-based acceleration limited by scenario), balancing retention with shareholder protections (double-trigger CoC for enhanced benefits) .
Appendix: Additional Data Tables
2024 Grants to Tyler Sloat (detail)
| Approved Value | Annual RSU (#) | Special Refresh RSU (#) | Target PRSU (#) | PRSU Earned (#) |
|---|---|---|---|---|
| $10,000,000 | 195,926 | 186,596 | 83,968 | 85,899 |
Summary Compensation (select lines)
| Year | Salary ($) | Stock Awards ($) | Non-Equity Incentive ($) | Total ($) |
|---|---|---|---|---|
| 2022 | 418,750 | 4,999,984 | 41,425 | 5,461,869 |
| 2023 | 420,000 | 4,599,993 | 265,191 | 5,285,723 |
| 2024 | 465,000 | 9,451,087 | 193,678 | 10,110,305 |
Ownership and Policies
- Beneficial ownership: 141,079 Class A; 593,725 Class B (as of March 31, 2024) .
- Stock ownership guidelines: 3x salary for NEOs; 5-year compliance period; status compliant/within window (as of 12/31/24) .
- Anti-hedging/pledging: Prohibited .
Sources: Freshworks 2025 DEF 14A; 2024 DEF 14A; 2025 Form 10-K (including Insider Trading Policy), and 2025 Q2 10-Q disclosures as cited above.