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Stuart Hollenshead

Chief Operating Officer at ProPhase Labs
Executive

About Stuart Hollenshead

Stuart Hollenshead, age 41, was appointed Chief Operating Officer of ProPhase Labs on February 17, 2025, and transitioned back to a marketing consultant role effective July 31, 2025 . He holds a bachelor’s degree from Bucknell University and brings 15+ years of operating experience in media, e-commerce, and subscription-driven businesses, including leadership roles at Barstool Sports, Business Insider, TheStreet, and WWE . Prior to ProPhase, he helped drive audience and monetization growth culminating in Barstool’s acquisition by Penn Entertainment, and led scaled DTC initiatives across subscriptions, e-commerce, and partnerships . At ProPhase, his compensation emphasized at-risk equity via a 500,000-share inducement option with multi-year vesting, plus a discretionary annual bonus tied to company and individual performance, aligning incentives with execution while retaining at-will employment flexibility .

Past Roles

OrganizationRoleYearsStrategic impact
Barstool SportsEVP Growth → COO & CBO2018–2024Led multi-pronged monetization (subscriptions, e-commerce, partnerships) and scaled audience/revenue ahead of acquisition by Penn Entertainment
Business InsiderGrowth/Subscriptions leadershipPre-2015Helped lead audience and subscription growth ahead of acquisition by Axel Springer
TheStreetDTC Subscription leadPrior to BIScaled direct-to-consumer subscription business to ~$30M and pioneered AI-driven content automation
WWEProduct/Platform initiativesPriorDrove product monetization and platform migrations; WWE Network reached nearly 2M paying subscribers

External Roles

OrganizationRoleYearsStrategic impact
10PM CurfewChief Executive Officer (previously CRO)2024–presentOne of the largest female-centric digital platforms (70M+ audience); leverages content, creators, and TikTok Shop for brand growth

Fixed Compensation

ComponentAmount/TermsEffective dateNotes
Base salary$190,000 per annum 2025-02-17 Paid biweekly; at-will employment
BenefitsEligible per company plans 2025-02-17 Standard plan eligibility
Vacation3 weeks per 12 months 2025-02-17 Plus scheduled holidays
Annual bonus eligibilityDiscretionary; based on company and individual performance 2025-02-17 No target % or metrics disclosed

Performance Compensation

InstrumentGrant dateQuantity/StrikeVesting scheduleExpirationPerformance metricsPayout/Status
Inducement Non-Qualified Stock Option2025-02-17 500,000 options @ $0.60 25% at grant (125,000), then 25% on 1st, 2nd, 3rd anniversaries (125,000 each) subject to continued “Employment” (includes service as employee, consultant, or director) 7 years from grant (earliest of conditions in agreement) None specified (time-based vesting; Committee may accelerate on Change of Control) Discretionary annual bonus separate; no PSU/RSU terms disclosed

Detailed mechanics:

  • Exercise window on termination: death/disability = 1 year; company without cause = 30 days; for cause or resignation = on termination date; however, continued service as a consultant counts as “Employment,” preserving vesting and exercisability during such service .
  • Committee may accelerate vesting upon Change of Control and may cancel out-of-the-money options for no consideration .
  • Option recovery/clawback-like provision allows forfeiture/recoupment for cause or restrictive covenant breaches within 6 months post-service .

Equity Ownership & Alignment

CategoryDetail
Beneficial ownership (shares)Not disclosed in proxy tables for Hollenshead; 2025 special proxy lists certain officers/directors but not Hollenshead specifically .
Option holdings500,000 options @ $0.60; 125,000 vested at grant; 125,000 scheduled to vest on each of the next three anniversaries, subject to continued service .
Exercisable vs. unexercisableTime-based; exercisability per vesting; termination provisions as above .
Pledging/hedgingNo disclosures regarding pledging or hedging by Hollenshead .
Ownership guidelinesNo specific executive stock ownership guidelines disclosed for Hollenshead in available filings .

Employment Terms

TermDetail
Employment statusAt-will; full-time COO effective 2025-02-17 .
TransitionResigned as COO effective 2025-07-31; resumed prior role as marketing consultant . Under the option agreement, “Employment” includes consultant service, supporting continued vesting while consulting .
Start date2025-02-17 (COO) .
SeveranceNot disclosed; offer letter is at-will and does not specify severance or multiples .
Change-of-controlOption-level discretionary acceleration by Compensation Committee; may cancel for fair value or no value if underwater . No separate cash CIC severance disclosed .
ClawbackOption recovery provision for cause or certain post-termination covenant breaches (6 months) including return/repayment of shares/proceeds .
Non-compete/non-solicitNot expressly disclosed in offer letter; option recovery references violations of non-compete/non-solicit if applicable .
IndemnificationStandard company indemnification agreement to be executed .

Say-on-Pay & Shareholder Feedback

ItemOutcome
Say-on-Pay (Advisory) at 2025 Annual MeetingApproved: For 6,718,684; Against 1,052,257; Abstain 106,584; Broker Non-Votes 13,757,579 .
Say-on-Pay frequencyStockholders preferred every 3 years; Board to follow triennial cadence .

Compensation Structure Analysis

  • Cash vs. equity mix: Low fixed cash ($190K) with material equity option (500,000 NQ options), indicating greater at-risk pay and alignment with potential shareholder upside .
  • Shift to options over RSUs/PSUs: Only time-based inducement options disclosed; no RSUs/PSUs or performance shares (reduces explicit performance linkage but preserves upside leverage, and options are out-of-the-money instruments at grant) .
  • Bonus design: Annual discretionary bonus tied to company and individual performance; no disclosed target %, weighting, or hard metrics, implying committee discretion and limited transparency into pay-for-performance calibration .
  • Change-in-control: Discretionary single-trigger acceleration at committee level for the option; no guaranteed CIC severance multipliers (limits windfall risk) .

Risk Indicators & Red Flags

  • Role transition/retention: Resigned as COO after ~5.5 months and returned to consulting role, introducing continuity risk at the operating helm but preserving his service status under the option’s “Employment” definition .
  • Multi-hatting: Concurrent CEO of 10PM Curfew; potential time-allocation considerations, though company statements frame synergies for consumer marketing .
  • Clawback coverage: Option recovery terms exist, but broader corporate clawback policy terms (e.g., financial restatement triggers) not detailed in available documents .
  • Pledging/hedging: No disclosures regarding pledging; absence of disclosure does not confirm prohibition .

Performance & Track Record

  • Major achievements: Scaled audiences and monetization at Barstool (record revenue growth and diversified lines), supported BI growth ahead of sale, built DTC subscription engine at TheStreet, and supported WWE Network scaling to ~2M subscribers .
  • Industry recognition: Positioned as a growth operator across media, commerce, and digital platforms with direct marketing expertise .

Fixed Compensation (Detail Table)

Metric2025
Base Salary ($)190,000
Target Bonus (%)Not disclosed
Actual Bonus Paid ($)Not disclosed
PerquisitesNot disclosed

Performance Compensation (Detail Table)

MetricWeightingTargetActualPayoutVesting
Annual bonusNot disclosedNot disclosedNot disclosedDiscretionaryAnnual, at committee discretion
Option award (time-based)N/AN/AN/AN/A25% at grant; 25% at 1-, 2-, 3-year anniversaries; 7-year term

Equity Ownership & Alignment (Detail Table)

HoldingQuantityStrike/PriceVestedUnvestedExpirationNotes
NQ Options500,000$0.60 125,000 at grant 375,000 scheduled (125k per anniversary) 7 years from grant; earlier upon certain terminations “Employment” includes consultant role

Employment Terms (Detail Table)

ClauseKey Terms
At-willYes
Start / TransitionCOO effective 2025-02-17; resigned 2025-07-31; continues as consultant
SeveranceNot disclosed
CICCommittee may accelerate options; cancellation terms possible
Clawback/RecoveryFor cause and certain post-termination covenant violations (6 months)
IndemnificationStandard form to be executed

Investment Implications

  • Alignment and leverage: The low base salary plus a sizable, out-of-the-money time-based option aligns upside with equity value creation; discretionary bonus introduces flexibility but reduces metric transparency .
  • Retention dynamics: The quick shift from COO to consultant reduces operational continuity risk via continued service (thus preserving vesting), but also signals role realignment and potential medium-term retention uncertainty in a senior operator seat .
  • Governance/CIC discipline: Absence of guaranteed CIC cash severance and only committee-discretionary option acceleration limits windfall risk, which is favorable to shareholders under sale scenarios .
  • Execution lens: Track record in scaling DTC brands and monetization is positive for PRPH’s consumer-led strategy; dual role at 10PM Curfew could be synergistic for product launches but should be monitored for focus and potential conflicts as plans evolve .