Karen Herckis
About Karen Herckis
Karen Herckis is Executive Vice President, Chief Human Resources Officer (CHRO) at CS Disco (NYSE: LAW), age 53, and has served in the CHRO role since January 2024 after progressing through Senior Vice President, Human Resources (June 2023–January 2024), Vice President, Human Resources, and Principal Vice President, Human Resources (January 2022–May 2023); she previously was Vice President, People at Aventri (June 2019–January 2022) and held HR leadership roles at Epiq (March 2011–June 2019), most recently Senior Director, Human Resources, and holds a Bachelor of Science from the University of Texas at Austin . Company-wide incentive design centers on revenue and Adjusted EBITDA, with 2024 corporate achievement certified at ~73% of target, framing pay-for-performance calibration for senior leaders including HR governance oversight .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| CS Disco, Inc. | EVP, Chief Human Resources Officer | Jan 2024–present | Not disclosed |
| CS Disco, Inc. | SVP, Human Resources | Jun 2023–Jan 2024 | Not disclosed |
| CS Disco, Inc. | VP/Principal VP, Human Resources | Jan 2022–May 2023 | Not disclosed |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Aventri | Vice President, People | Jun 2019–Jan 2022 | Not disclosed |
| Epiq | Senior Director, Human Resources (various HR roles) | Mar 2011–Jun 2019 | Not disclosed |
Fixed Compensation
- Karen is not a named executive officer in the 2025 proxy, and her specific base salary, target bonus, and actual bonus are not separately disclosed; the 2024/2025 NEOs are CEO, chair/former CEO, CFO, and CCO .
Performance Compensation
- CS Disco’s annual Performance Bonus Plan covers named executive officers and other senior management, using specified revenue, Adjusted EBITDA, and non‑quantitative business goals as the core metrics; 2024 corporate performance was certified at ~73% of target, and the plan paid approximately 73% of target for eligible participants for 2024 .
- Equity incentives utilize RSUs and PSUs; for performance-based awards earned for 2024, PSUs vest one-third at certification (Feb 25, 2025), with the remainder in eight equal quarterly installments thereafter; 2025 PSU awards vest one-fourth after certification, then in twelve equal quarterly installments thereafter, subject to continued service .
| Metric | Weighting | Target | Actual (2024) | Payout | Vesting |
|---|---|---|---|---|---|
| Revenue | Not disclosed | Not disclosed | Part of corporate achievement | ~73% of target for eligible participants | PSUs: 1/3 at certification (Feb 25, 2025), then 8 equal quarterly installments |
| Adjusted EBITDA | Not disclosed | Not disclosed | Part of corporate achievement | ~73% of target for eligible participants | PSUs: 1/3 at certification (Feb 25, 2025), then 8 equal quarterly installments |
| Non‑quantitative business goals | Not disclosed | Not disclosed | Included in composite | ~73% of target for eligible participants | Same as above |
Notes: Table reflects company-wide incentive framework; Karen’s individual weighting/targets/payouts are not disclosed .
Equity Ownership & Alignment
- Beneficial ownership for Karen is not individually disclosed in the 2025 proxy’s beneficial owner table (which lists NEOs/directors and >5% holders) .
- Hedging and pledging are prohibited under CS Disco’s Insider Trading Policy (no hedging/monetization, no derivative trading, short selling, margin purchases, or pledging of shares), which reduces alignment risk from collateralization and derivatives .
- The compensation committee oversees compliance with any applicable stock ownership guidelines for directors and executive officers; individual guideline levels and compliance status for Karen are not disclosed .
Employment Terms
- The proxy discloses employment agreements, severance, and change‑in‑control terms for CEO, CFO, and CCO; Karen’s employment agreement and severance terms are not disclosed .
- Executive officers (e.g., NEOs) have indemnification agreements and are covered under Delaware-law indemnification and D&O insurance; this applies to executive officers generally, but Karen’s specific agreement is not separately detailed .
Performance & Track Record
Company performance context during Karen’s HR leadership tenure:
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Revenue ($USD) | $135.19M | $138.09M | $144.84M |
| EBITDA ($USD) | -$69.49M* | -$44.30M* | -$44.18M* |
*Values retrieved from S&P Global.
Additional contextual disclosures:
- Retention risk is elevated given intense competition for qualified personnel (including HR-critical engineering, legal, and sales roles), with explicit risk factor acknowledgment of the need to attract and retain talent .
- The company recorded a $15.5M litigation loss contingency and a $9.2M insurance recovery (net $6.3M in G&A) related to ongoing securities litigation, illustrating potential volatility in expense lines that compensation committees may consider in incentive outcomes .
- Leadership transitions (e.g., CFO transition process and advisory period) highlight executive bench dynamics and continuity planning overseen by HR and the board .
Investment Implications
- Incentive architecture anchored to revenue and Adjusted EBITDA with a ~73% corporate payout for 2024 indicates active pay‑for‑performance calibration; for HR governance, this supports alignment but also embeds cyclical sensitivity to top‑line and profitability conditions .
- Multi‑year quarterly vesting for PSUs/RSUs extends realization and distributes share delivery across time, which can diffuse concentrated selling pressure and encourage retention through continued service requirements .
- Prohibitions on hedging/pledging reduce adverse alignment signals and collateral‑driven selling risk, a positive governance marker for insider behavior .
- Elevated retention risk disclosed in risk factors, alongside ongoing litigation costs, suggests HR execution quality is a key lever; monitoring HR-led talent acquisition/retention outcomes and any disclosed CHRO-specific awards in future proxies or 8‑Ks will be important for assessing alignment and potential insider trading signals .