John Peters
LemonadeAbout John Peters
John Peters, 53, is Chief Insurance Officer at Lemonade and has served in senior insurance roles since September 2016. He previously led underwriting and commercial operations at Liberty Mutual (2011–2016) and was a partner in McKinsey’s global P&C practice; he holds a BA in Mathematics and German from Bowdoin College and is a former fellow of the Casualty Actuarial Society . Company performance during 2024: gross written premium grew 26% to $929.0M, total revenue rose 22% to $526.5M, net loss improved to $(202.2)M, and the gross loss ratio improved to 73% from 85% in 2023, indicating underwriting progress linked to Peters’ remit . Shareholder return (fixed $100 investment) improved to $45 in 2024 (from $20 in 2023), and Adjusted EBITDA improved to $(150)M from $(173)M, while net loss moderated, contextualizing pay-for-performance .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Liberty Mutual Insurance | EVP, Commercial Insurance Operations; Chief Underwriting & Product Officer, Regional Companies Group | 2011–2016 | Led underwriting/product and commercial operations across regional companies |
| McKinsey & Company | Partner, Global P&C Insurance Practice | 10 years | Advised insurers on strategy/operations; partner leadership in P&C |
External Roles
- No public company board roles disclosed for John Peters .
Fixed Compensation
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Base Salary ($) | $410,000 | $212,500 | $212,500 |
| Target Bonus % | N/A – Company did not provide annual cash incentive plans for NEOs | N/A – Company did not provide annual cash incentive plans for NEOs | N/A – Company did not provide annual cash incentive plans for NEOs |
| Actual Bonus Paid ($) | $0 | $0 | $0 |
Note: Peters’ base salary was reduced to $212,500 effective Nov 15, 2023 under a Transition Letter Agreement reducing duties to 30 hours/week; prior salary was $410,000 (decreased from $425,000 in 2020) .
Performance Compensation
Incentive Metrics Framework
| Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|
| Annual Cash Incentive (NEOs) | N/A | N/A | N/A | None | N/A (company did not provide annual cash incentives in 2024) |
| Performance Stock Units (PSUs) | N/A | N/A | N/A | None | N/A (Peters’ grants are time-based RSUs/options) |
2024 Equity Grants (John Peters)
| Grant Date | Type | Shares Granted | Grant-Date Fair Value ($) | Vesting Schedule |
|---|---|---|---|---|
| 03/01/2024 | RSU | 4,025 | $68,103 | 16 equal quarterly installments over 4 years |
| 06/23/2024 | RSU | 17,889 | $284,435 | 8 equal quarterly installments over 2 years |
FY24 Vesting/Exercises
| Action (2024) | Shares | Value Realized ($) |
|---|---|---|
| Options Exercised | 30,000 | $828,200 |
| Stock Vested (RSUs) | 16,906 | $479,832 |
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial Ownership (4/10/2025) | 261,698 shares; <1% of outstanding (73,266,170 total shares) |
| Unvested RSUs (12/31/2024) | 13,416 (6/23/24 grant) ; 3,019 (3/1/24 grant) ; 10,791 (8/11/23 grant) ; 15,000 (2/7/23 grant) |
| Options – Exercisable/Unexercisable | 15,628/9,372 @ $27.35 (4/5/22) ; 18,752/6,248 @ $44.57 (12/6/21) ; 9,375/625 @ $94.07 (3/10/21) ; 50,000/— @ $24.36 (3/19/20) ; 50,000/— @ $11.61 (2/6/19) ; 35,000/— @ $5.26 (3/28/18) ; 30,000/— @ $2.65 (3/8/17) |
| In-the-money status (12/31/2024) | Fair market value $36.68; Peters’ options include tranches with exercise prices below FMV; other NEOs’ options were out-of-the-money (footnote indicates zero value for others), confirming Peters’ equity acceleration value is non-zero |
| Hedging/Pledging | Prohibited by Insider Trading Compliance Policy (no hedging, short sales, derivatives, margin accounts, or pledging) |
| Ownership Guidelines | Not disclosed for executives |
Employment Terms
| Provision | Details |
|---|---|
| At-will; Base Salary History | Employment is at-will; original base $225,000 (2016), increased to $425,000 (2017), decreased to $410,000 (2020), reduced to $212,500 effective 11/15/2023 under Transition Letter Agreement (30 hours/week) |
| Severance (No CIC) | 6 months base salary; 50% of target annual bonus; 6 months COBRA; acceleration of 6 months of equity vesting |
| Severance (CIC + Termination within window) | 12 months base salary; 100% of target annual bonus; 12 months COBRA; full acceleration of outstanding equity awards (double trigger) |
| “Cause” / “Good Reason” definitions | Detailed definitions including material breach, refusal to perform duties (with cure periods), misappropriation, policy violations, breach of loyalty, dishonesty, and confidentiality; Good Reason includes material reductions in salary/benefits or duties, failure to assume obligations post-transaction, and material breach (with notice/cure) |
Estimated Potential Payments (as of 12/31/2024)
| Scenario | Cash ($) | Equity Acceleration ($) | Healthcare ($) | Total ($) |
|---|---|---|---|---|
| Termination Without Cause or for Good Reason (no CIC) | $106,250 | $172,381 | $13,698 | $292,329 |
| Change in Control (No Termination) | — | — | — | — |
| Termination Without Cause or for Good Reason in connection with CIC | $212,500 | $681,105 | $27,396 | $921,001 |
Compensation Structure Analysis
- Mix and trends: Peters’ 2024 compensation was $572,884 (salary $212,500; stock awards $352,538; no options or bonus); 2023 totaled $1,005,359 (salary $212,500; stock awards $782,641; no options or bonus); 2022 totaled $751,103 (salary $410,000; options $332,403; no bonus), showing a shift from options (2022) to RSUs (2023–2024) and reduced fixed pay under a part-time transition .
- Governance features: Clawback policy (Rule 10D-1) mandates recovery of erroneously awarded incentive compensation for 3 fiscal years preceding any restatement; company does not provide tax gross-ups (Sections 280G/4999) and notes 162(m) limits on deductibility .
- Peer benchmarking and consultant: Compensation Committee retained Aon Human Capital Solutions; peer group includes fintech/insurtech firms like Hippo, Root, Oscar, Trupanion, and others (revenue $250M–$2B; market cap $200M–$3.6B) .
Equity Ownership & Vesting Schedules (Detail)
| Grant/Instrument | Terms |
|---|---|
| 2024 RSUs (6/23) | 17,889 units; vest in 8 equal quarterly installments over 2 years |
| 2024 RSUs (3/1) | 4,025 units; vest in 16 equal quarterly installments over 4 years |
| 2023 RSUs | 10,791 units unvested (8/11/23 grant) |
| 2023 RSUs | 15,000 units unvested (2/7/23 grant) |
| Options (key tranches) | Multiple grants from 2017–2022 with time-based vesting; several strike prices below $36.68 FMV, indicating in-the-money potential for Peters |
Insider selling pressure indicators: Peters exercised 30,000 options in 2024 and had 16,906 RSUs vest, creating potential supply around vest/settlement windows; no hedging/pledging allowed by policy .
Performance & Track Record
- 2024 operating progress: Gross written premium +26% (to $929.0M), total revenue +22% (to $526.5M), and gross loss ratio improved from 85% to 73%, supporting underwriting improvement during Peters’ tenure .
- Shareholder returns: Fixed $100 TSR increased to $45 in 2024 (from $20 in 2023), with Adjusted EBITDA improving to $(150)M (from $(173)M) and net loss moderating to $(202.2)M .
Governance and Compliance Notes
- Say-on-Pay approval: 87.5% “For” at the 2024 annual meeting, indicating improved shareholder support for executive pay programs .
- Section 16(a) compliance: One Form 4 (two late transactions) was filed late for John Peters (and for Maya Prosor) in 2024 .
- Insider trading policy: Prohibits hedging, pledging, short sales, derivatives, margin accounts for all insiders .
Compensation & Ownership Tables (Multi-Year Summary)
Summary Compensation (John Peters)
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Salary ($) | $410,000 | $212,500 | $212,500 |
| Bonus ($) | $0 | $0 | $0 |
| Options ($, grant-date fair value) | $332,403 | $0 | $0 |
| Stock Awards ($, grant-date fair value) | $0 | $782,641 | $352,538 |
| All Other Compensation ($) | $8,700 | $10,218 | $7,846 |
| Total ($) | $751,103 | $1,005,359 | $572,884 |
Beneficial Ownership (as of 4/10/2025)
| Holder | Shares | % of Outstanding |
|---|---|---|
| John Peters | 261,698 | <1% |
Investment Implications
- Alignment: Peters’ compensation is predominantly equity-linked (RSUs), tightening alignment with shareholders; options are selectively in-the-money, unique among NEOs, indicating more direct market-tied incentives for Peters .
- Retention risk: Transition to part-time (30 hours/week) with reduced base salary may imply succession planning or role evolution; double-trigger CIC terms and accelerated vesting provide retention through potential corporate events .
- Trading signals: 2024 exercises (30,000 options) and ongoing RSU vesting cadence suggest periodic supply; policy constraints reduce risk of hedging/pledging-related overhang .
- Governance quality: Strong clawback, no tax gross-ups, and improved say-on-pay support (87.5%) mitigate shareholder risk; late Form 4 filings are a minor compliance flag to monitor .