Eric Haynor
About Eric Haynor
Eric S. Haynor is Chief Operating Officer of Purple Innovation, appointed via offer letter dated April 29, 2022, with employment effective June 6, 2022. He was age 58 at appointment and holds a B.S. in Mechanical Engineering from Michigan State University, bringing a 30-year supply-chain track record from Ecolab (end‑to‑end supply chain accountability, regional leadership across APAC and EMEA, and global equipment/life sciences operations) . Pay-for-performance at PRPL emphasizes Net Revenue and “Bonus Adjusted EBITDA” (equally weighted) under the annual STIP, with long-term equity split between time-based RSUs and stock price–contingent PSUs on three-year cycles, aligning cash and equity outcomes to operating results and market performance .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Ecolab, Inc. | SVP, Global Industrial Supply Chain | 2019–2022 | End-to-end supply-chain accountability for North America; operational efficiency and industrial business group leadership |
| Ecolab, Inc. | VP, Global Equipment Operations & Global Life Sciences | 2017–2019 | Led global equipment operations and life sciences supply chain initiatives |
| Ecolab, Inc. | VP, Global Equipment Supply Chain Operations | 2014–2017 | Managed global equipment supply chain operations |
| Ecolab, Inc. | VP, Supply Chain Operations – EMEA | 2009–2014 | Ran EMEA regional supply chain operations |
| Ecolab, Inc. | VP, Supply Chain Operations – Asia Pacific | 2005–2009 | Led APAC regional supply chain operations |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| — | — | — | No public company directorships disclosed; Haynor is listed as a Named Executive Officer (not a director) . |
Fixed Compensation
| Component | 2023 | 2024 | Notes |
|---|---|---|---|
| Base Salary ($) | $490,529 | $517,933 | Base salary rates: 2023 $498,750; 2024 $525,000 |
| Target Bonus (% of Salary) | 50% | 50% | STIP metrics: Net Revenue and Bonus Adjusted EBITDA, equally weighted |
| Bonus ($) | — | $62,344 (special recognition bonus tranche) | |
| Stock Awards ($, grant-date FV) | $265,824 | $56,346 | |
| Non-Equity Incentive Plan ($) | — | — | |
| All Other Compensation ($) | $13,640 | $47,737 (Relocation $33,738; 401(k) match $14,494; product gifts $505) | |
| Total ($) | $769,993 | $685,360 |
Special recognition bonus program (retention): Award equal to 15 months of salary ($623,438 for Haynor), paid 10% Aug 2024 ($62,344), 20% Feb 2025 ($124,688), 70% Aug 2025 ($436,406) subject to continued employment .
Performance Compensation
STIP – Annual Cash Incentive (Short-Term Incentive Plan)
| Metric | Weighting | Target Construction | Actual (2024) | Payout (2024) | Notes |
|---|---|---|---|---|---|
| Net Revenue | 50% | Company financial objective set by HC&C Committee | Not disclosed | $0 (no STIP payout; adjusted EBITDA threshold not met) | |
| Bonus Adjusted EBITDA | 50% | EBITDA excluding non-operating/one-time items (legal, severance, production, showroom startup) | Not disclosed | $0 (no STIP payout; adjusted EBITDA threshold not met) |
LTIP – Equity Incentives (RSUs/PSUs)
| Grant Date | Type | Shares/Units | Vesting | Performance Condition | Grant-Date Fair Value ($) |
|---|---|---|---|---|---|
| 06/20/2024 | RSU | 63,303 | 1/3 annually over 3 years (starting Mar 31, 2024) | Time-based | $56,346 |
| 06/20/2023 | RSU | 28,194 | 1/3 annually over 3 years (beginning Mar 15, 2023) | Time-based | Not disclosed |
| 06/20/2023 | PSU | 78,539 | Cliff vest Mar 15, 2026 | 60 consecutive trading-day VWAP price targets; earned 0–100% | Not disclosed |
| 06/06/2022 | RSUs/PSUs (Inducement) | 82,615 (total shares) | RSUs: 1/3 annually; PSUs: 3-year cliff | PSUs contingent on stock price thresholds; RSUs time-based | Valued at $500,000 at grant |
PSU construct (2024 grants): granted Mar 14, 2024, vest Mar 14, 2027; contingent on 60-consecutive trading-day VWAP price targets, with earning increments 0–100% .
Equity mix policy: annual equity award equal to 60% of base salary for C-level, split between time-based RSUs and performance-based PSUs .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Total Beneficial Ownership | 295,650 shares (less than 1%) |
| Ownership as % of Outstanding | ~0.28% (295,650 of 107,545,493 shares outstanding as of Mar 7, 2025) |
| Stock Ownership Guidelines | NEOs must hold equity valued at 3x base salary (CEO 5x; directors 3x; others 1x), valued using 20‑day VWAP; deadline is later of Nov 12, 2025 or 5th anniversary of becoming an equity holder; compensatory equity must be retained until threshold met; all NEOs were making progress as of Dec 31, 2024 |
| Hedging/Pledging | Pledging prohibited; hedging discouraged and requires Board pre‑clearance; short sales and trading options prohibited |
| Outstanding Awards Snapshot (12/31/2024) | RSUs: 63,303 (2024 grant), 28,194 (2023 grant); PSUs: 78,539 (2023 grant). Inducement grant: 82,615 shares (6/6/2022) |
Insider trading policy restricts short sales, pledging, and certain hedging/monetization transactions .
Employment Terms
| Provision | Term |
|---|---|
| Position/Reporting | COO reporting to CEO; D&O insurance provided |
| Start Date | June 6, 2022 |
| Base Salary | $475,000 at hire; guaranteed 100% achievement of prorated 2022 bonus target; base increased to $498,750 (2023 rate) and $525,000 (2024 rate) |
| Target Bonus | 50% of base salary under STIP (company and individual metrics) |
| Annual Equity Eligibility | Equity award equal to 60% of base salary, split RSUs/PSUs; began in 2023 |
| Inducement Grant | $500,000 value; 65% PSUs (3-year cliff; stock price thresholds), 35% RSUs (1/3 annual) |
| Commuting/Relocation | $4,000 monthly commuting stipend for first 4 months; relocation expenses (with reimbursement obligation if voluntary departure or for cause within 24 months); additional $5,000 grossed-up for secondary move; benefits: PTO 5 weeks, wellness, 10 holidays, matched 401(k) up to 5% |
| Severance (General Policy) | For officers without employment agreement: six months base salary and insurance benefits (policy as of 2024) |
| Severance (Offer Letter) | 14 weeks plus one week per completed year of service of base salary; unvested PSUs/RSUs forfeited unless within 12 months following a change in control per 2017 Plan |
| Change-in-Control | Double trigger standard; Committee may accelerate exercisability/adjust awards; may cash out awards; vested options exercisable for one year upon death/disability |
| Clawback | 2023 Incentive Compensation Clawback Policy compliant with Nasdaq Rule 5608/Exchange Act Rule 10D‑1; recovery of excess incentive compensation over 3 prior fiscal years in case of restatement; discretionary adjustment for misconduct |
| Related Party/Familial | No related party transactions or family relationships disclosed at appointment |
Termination/Change-in-Control Economics (Illustrative, as disclosed)
| Scenario (as of year-end) | Severance ($) | Other ($) | Total ($) |
|---|---|---|---|
| Termination Without Cause (12/31/2023) | 143,870 | — | 143,870 |
| Termination on Change in Control (12/31/2023) | 143,870 | 69,457 | 213,327 |
| Termination Without Cause (12/31/2024) | 267,861 | — | 267,861 |
| Termination on Change in Control (12/31/2024) | 267,861 | 82,215 | 350,075 |
Compensation Structure Analysis
- Year-over-year cash vs equity mix: 2024 shows modest salary increase and small RSU grant ($56k FV) vs larger 2023 stock awards ($266k FV); STIP paid zero in both 2023 and 2024, but retention “special recognition” cash substituted partially for annual incentive in 2024 .
- Shift in incentive design: Equity continues to emphasize PSUs with market‑priced VWAP thresholds and three-year cliffs; RSUs time-based, maintaining balance of performance- vs service-based pay .
- Guaranteed elements: 2022 bonus guarantee (on a prorated basis) at hire; subsequent years rely on STIP/LTIP outcomes .
- Anti‑risk features: No excise tax gross‑ups, prohibition on repricing under 2017 Plan, clawback adoption, anti-hedging/pledging, ownership guidelines with hold‑until‑met provisions .
Compensation Peer Group and Governance
| Topic | Disclosure |
|---|---|
| 2025 Peer Group (approved late 2024) | 16 companies: Bassett Furniture; Haverty Furniture; Beyond, Inc.; Hooker Furnishings; Canada Goose; iRobot; Culp; Kirkland’s; Ethan Allen; Lovesac; FIGS; The RealReal; Flexsteel; Traeger; GoPro; Warby Parker; median revenues ~$617.8mm; median market cap ~$331.0mm |
| Independent Consultant | LB&Co. engaged; independence confirmed; services include peer group, market data, compensation design |
| Say-on-Pay | Advisory vote requested annually; Board recommends “FOR”; specific prior approval percentages not disclosed here |
| Executive Compensation Principles | Pay for performance; double-trigger CIC; annual risk assessment; benchmarking; no automatic raises or excise gross‑ups; prohibitions on short sales, pledging, hedging unless pre‑cleared |
Investment Implications
- Alignment and retention: Haynor’s 2024–2025 special recognition cash (70% due Aug 2025) is a strong near-term retention lever; forfeiture risk if he departs prior to payment dates, reducing departure likelihood before Aug 2025 .
- Performance sensitivity: STIP uses Net Revenue and Bonus Adjusted EBITDA with zero payouts when EBITDA threshold is missed, constraining cash incentives in downturns and aligning awards to operational recovery; equity PSUs are contingent on sustained VWAP price thresholds, increasing sensitivity to share price recovery and potentially amplifying long‑term alignment .
- Supply/vesting overhang: RSUs vest annually and PSUs have cliffs (e.g., Mar 2026 and Mar 2027), implying potential incremental share delivery in those windows and possible insider selling pressure around vesting dates for tax‑related sales; pledging is prohibited, mitigating collateral‑driven sell pressure .
- Severance/CIC economics: Modest cash severance vs CEO, with incremental equity value upon CIC termination; overall structure is shareholder-friendly (double trigger, clawback) and discourages windfalls absent performance or qualifying termination .
- Ownership posture and guidelines: Beneficial ownership (~0.28% of shares) is small but guidelines require 3x salary equity retained until met, increasing “skin-in-the-game” over time; all NEOs progressing toward compliance as of year-end 2024 .
No related party transactions or family relationships were disclosed for Haynor at appointment, reducing governance red‑flags on conflicts .