Thomas Sternweis
About Thomas Sternweis
Thomas Sternweis is Senior Vice President, Strategy and Enterprise Development at The Honest Company (HNST), a role he has held since March 2024, after serving as Vice President of Enterprise Development and Strategy since May 2023 and earlier leadership roles in Emerging Business, Marketplace, and Strategic Development since joining Honest in January 2018 . He is 43 years old as of March 31, 2025 and holds a B.A. in Mathematical Methods in Social Sciences and Economics from Northwestern University and an M.B.A. from Northwestern’s Kellogg School of Management . Prior experience includes Corporate Development and Strategy at Mattel (supporting M&A, strategic partnerships, and APAC strategy) and roles at Boston Consulting Group and a New York private equity firm . Company incentive design ties executive pay to net revenue, adjusted EBITDA, and operating priorities; in 2024, Honest achieved maximum payout on net revenue and adjusted EBITDA with overall annual payout at 121.9% of target for named executive officers, framing performance context during his tenure .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| The Honest Company | Senior Vice President, Strategy and Enterprise Development | Mar 2024–present | Leads Enterprise Development and Strategy |
| The Honest Company | Vice President, Enterprise Development & Strategy | May 2023–Mar 2024 | Enterprise development and strategy leadership |
| The Honest Company | Vice President & General Manager, Emerging Business & Marketplace | Mar 2022–May 2023 | Oversaw emerging business and marketplace |
| The Honest Company | Senior Director, Strategic Development | Jan 2018–Mar 2022 | Strategic development responsibilities |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Mattel, Inc. | Corporate Development & Strategy | Jul 2014–Jan 2018 | Supported M&A, strategic partnerships, APAC strategy |
| Boston Consulting Group | Strategy/Consulting roles | Jul 2011–Jul 2014 | Strategic management consulting experience |
| Private Equity Firm (NY) | Investment/PE roles | Jul 2011–Jul 2014 | Private equity experience |
Fixed Compensation
- Detailed compensation for Sternweis is not disclosed; as an emerging growth company, Honest reports compensation for named executive officers only (CEO, CFO, Chief People Officer, Former CCO) .
Performance Compensation
- Honest’s annual bonus framework (applies to executive officers) in 2024: 50% based on company financial results (net revenue and adjusted EBITDA) and 50% based on four operating priorities (expand retail distribution, increase operational efficiency, build innovation pipeline, develop organizational effectiveness). Outcomes: maximum payout on net revenue and adjusted EBITDA; operating priorities largely achieved (retail distribution partially), for an overall payout of 121.9% of target for named executive officers .
| Metric | Weighting | 2024 Outcome | Payout Basis | Notes |
|---|---|---|---|---|
| Net Revenue | 25% (within Financial 50%) | Achieved maximum | Company-level | Part of financial results component |
| Adjusted EBITDA | 25% (within Financial 50%) | Achieved maximum | Company-level | Part of financial results component |
| Expand Retail Distribution | 12.5% (within Operating 50%) | Partially achieved | Company-level | Operating priority |
| Increase Operational Efficiency | 12.5% (within Operating 50%) | Achieved | Company-level | Operating priority |
| Build Innovation Pipeline | 12.5% (within Operating 50%) | Achieved | Company-level | Operating priority |
| Develop Organizational Effectiveness | 12.5% (within Operating 50%) | Achieved | Company-level | Operating priority |
| Overall 2024 Annual Bonus Payout (NEOs) | — | 121.9% of target | Company-level | Reflects combined metrics |
Note: Individual targets/actuals for Sternweis are not disclosed; table reflects company program design and outcomes .
Equity Ownership & Alignment
- Individual beneficial ownership for Sternweis is not disclosed in the proxy’s ownership table; NEOs and directors are itemized, but Sternweis is not listed individually .
- Policy alignment: Honest prohibits employee and director hedging, short sales, margin accounts, and pledging of company stock, reducing misalignment/pledging risk; a Dodd‑Frank/Nasdaq‑compliant clawback policy became effective October 2, 2023 .
- Equity program design: Post‑IPO, Honest uses RSUs for long‑term incentives that vest over multiple years; grants are generally made in Q1 for current employees, aligning retention and long-term performance culture . Typical executive RSU schedules disclosed for NEOs are 25% at first anniversary, then equal quarterly installments thereafter .
| Alignment Factor | Company Policy/Practice | Implications |
|---|---|---|
| Hedging/Pledging | Prohibited for employees/directors/consultants | Reduces alignment red flags (pledging/hedging) |
| Clawback | Adopted Oct 2, 2023 (Rule 10D‑1, Nasdaq 5608) | Recoupment mechanism enhances accountability |
| LTI Vehicle | RSUs post‑IPO; multi‑year vesting | Retention and performance alignment |
| Ownership Disclosure | Individual ownership for Sternweis not itemized | Limits direct skin‑in‑the‑game visibility |
Employment Terms
- Specific employment agreement terms (salary, target bonus %, severance/change‑of‑control) for Sternweis are not disclosed; Honest discloses such terms for named executive officers only .
- Indemnification: Officers and directors receive indemnification under bylaws and separate indemnity agreements to the fullest extent permitted by Delaware law .
Investment Implications
- Alignment signals: The shift to RSUs, multi‑year vesting, a robust clawback policy, and outright ban on hedging/pledging collectively support long‑term alignment and reduce pledging/hedging risk; however, absence of disclosed individual ownership for Sternweis weakens direct “skin‑in‑the‑game” assessment .
- Incentive‑performance linkage: Company bonus design emphasizes net revenue and adjusted EBITDA plus operating priorities; 2024 outcomes (max on financials; 121.9% overall payout for NEOs) imply emphasis on profitable growth and operational execution—relevant levers for his strategy role, though individual payouts for Sternweis are not disclosed .
- Retention risk: RSU-driven compensation and quarterly vesting schedules (as disclosed for NEOs) generally mitigate near‑term attrition risk by establishing ongoing vesting; lack of public detail on Sternweis’s grants prevents precise vesting pressure analysis .
- Governance and controls: Indemnification and standard EGC disclosures are consistent with small‑cap practices; no delinquent Section 16 filings since Jan 1, 2024 reduces compliance risk signals, but Form 4 trade specifics for Sternweis are not provided in the proxy .