John Roddy
About John Roddy
John J. Roddy IV is Purple Innovation’s Chief People Officer (also referenced as Chief Human Resources Officer), serving since October 2021; he is 57 years old with a Master’s in Organizational Psychology from Columbia University and a Bachelor’s in Organizational Behavior from BYU–Hawaii . Company performance during his tenure has been challenged: the value of a hypothetical $100 PRPL investment fell from $152.35 (2021) to $8.96 (2024), while Net Income was $(97,897)k in 2024 (vs. $(120,757)k in 2023) and Adjusted EBITDA was $(20,847)k in 2024 (vs. $(54,696)k in 2023) . His compensation and incentives are tied to company financial performance (annual STIP uses Net Revenue and “Bonus Adjusted EBITDA,” equally weighted) and long-term equity awards with vesting sensitive to change-in-control and employment continuity .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| VASA Fitness | Chief People Officer | 2018–Oct 2021 | Culture transformation, talent development, org design and change leadership |
| SeaWorld Parks & Entertainment | Chief Human Resources Officer | 2016–2018 | HR leadership and change leadership across a theme park platform |
| Luxottica Group | SVP, Human Resources | 2012–2016 | Organization design and talent development |
| Starbucks Corporation | VP, Human Resources | 2004–2012 | HR leadership in global retail |
Fixed Compensation
Base pay and cash bonus framework
| Metric | 2021 | 2022 | 2023 |
|---|---|---|---|
| Base salary (USD) | $345,000 | $395,000 | $406,850 |
| STIP target bonus (% of salary) | — | 50% (eligibility began 2022) | — |
Retention and special bonuses
| Item | Amount | Payment schedule / terms |
|---|---|---|
| Special Recognition Bonus (structure) | Equal to 15 months of base salary | Paid 10% on Aug 1, 2024; 20% on Feb 1, 2025; 70% on Aug 1, 2025, subject to continued employment |
| Unpaid Special Recognition Bonus (as of Mar 12, 2025) | $355,994 | Payable upon a Change in Control before Aug 1, 2025 if employed through consummation (Letter Agreement dated Mar 12, 2025) |
Multi-year compensation summary (as disclosed when a Named Executive Officer)
| Metric | 2022 | 2023 |
|---|---|---|
| Salary (USD) | $388,077 | $402,748 |
| Bonus (USD) | — | — |
| Stock Awards (USD) | $344,630 | $216,843 |
| Option Awards (USD) | — | — |
| Non-Equity Incentive Plan Comp (USD) | — | — |
| All Other Compensation (USD) | $160,006 | $47,858 |
| Total (USD) | $892,713 | $667,449 |
Performance Compensation
Annual STIP (Short-Term Incentive Plan) design
| Year | Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|---|
| 2023 | Net Revenue | 50% | N/A | N/A | N/A | Annual cash |
| 2023 | Adjusted/“Bonus” EBITDA | 50% | N/A | N/A | N/A | Annual cash |
| 2024 | Net Revenue | 50% | N/A | N/A | N/A | Annual cash |
| 2024 | “Bonus Adjusted EBITDA” | 50% | N/A | N/A | N/A | Annual cash |
Note: Filings describe the STIP metrics and equal weighting, but do not disclose individual numeric targets, actuals, or payout percentages for Mr. Roddy .
Long-term equity awards
| Grant date | Award type | Units | Grant-date fair value (USD) | Vesting schedule / conditions | Performance metric |
|---|---|---|---|---|---|
| 2021 | Initial equity (65% PSUs / 35% RSUs, sized to initial base salary) | — | — | RSUs vest 1/3 annually; PSUs cliff-vest after 3 years if stock-price hurdles met | Stock-price (60-day VWAP at 3rd anniversary) |
| 2023-06-20 | RSUs | 34,498 | $93,835 | 1/3 on 3/15/2024; 1/3 on 3/15/2025; 1/3 on 3/15/2026 | Time-based |
| 2023-06-20 | PSUs (threshold/target/max) | 16,017 / 64,067 / 64,067 | — | Cliff vest on 3/15/2025 if stock-price hurdles achieved (60-day VWAP) | Stock-price |
| 2025-03-12 | RSUs (Special Incentive Bonus Equity Grant) | 175,000 | — | Vest at earlier of Change in Control or 03/12/2028; pro rata vest on involuntary termination without cause | CIC/time-based |
| 2025-08-07 | RSU Amendment | — | — | 100% of RSUs vest upon Company termination without cause; CIC definition revised | N/A |
Change-in-control mechanics and severance context:
- Under the 2017 Plan, the Compensation Committee may accelerate or cancel awards and pay cash value upon a change in control, at its discretion .
- Company-wide severance policy evolved: 2023 disclosure cited 14 weeks plus one week per year of service for officers without employment agreements; 2025 disclosure cites six months of base salary and insurance benefits for officers without severance provisions .
- Mr. Roddy’s offer letter ties severance to the earlier policy and forfeits unvested equity unless termination occurs within 12 months following a change in control (see Employment Terms) .
Equity Ownership & Alignment
Beneficial ownership progression
| Metric | 2023 | 2024 |
|---|---|---|
| Shares beneficially owned | 26,842 | 44,610 |
| Ownership % of outstanding | — | <0.1% |
- Stock Ownership Guidelines: NEOs and senior leadership expected to hold equity valued at 3x base salary (valued using 20-day VWAP); equity must be retained until the guideline is met; all NEOs were making progress as of 12/31/2024 .
- Hedging/pledging: Insider Trading Policy prohibits short sales and pledging; hedging is restricted .
- Clawback: Nasdaq Rule 5608-compliant clawback adopted in Oct 2023 for excess incentive-based compensation following a restatement; also allows discretionary adjustments for misconduct .
- 10b5-1 plans: No adoption/modification/termination by directors or executive officers in Q4 2024 .
Employment Terms
| Term | Detail |
|---|---|
| Start date / current role | Chief People Officer since October 2021 |
| Offer letter (9/27/2021) | Base salary $345,000; STIP target up to 50% beginning 2022; $80,000 sign-on (two installments in 2022); $2,000 monthly commuting benefit for 12 months; relocation within 15 months |
| Severance (offer/policy) | For officers without individual severance: 14 weeks plus 1 week per completed year of service (2023 disclosure) ; Company policy updated in 2025 to six months of base salary and insurance benefits for officers without severance provisions |
| Equity on termination/CIC (legacy) | Unvested PSUs/RSUs forfeited upon termination without cause, unless termination occurs within 12 months following a change in control (2017 Plan definitions apply) |
| RSU Amendment (8/7/2025) | 100% of RSUs vest upon Company termination without cause; CIC definition revised |
| Special Recognition Bonus | Equal to 15 months of base salary; payable 10% (Aug 1, 2024), 20% (Feb 1, 2025), 70% (Aug 1, 2025), subject to continued employment |
| CIC acceleration of Special Recognition Bonus | Letter Agreement (3/12/2025): unpaid $355,994 payable upon CIC before Aug 1, 2025 if employed through consummation |
Estimated payout scenarios (as of 12/31/2023):
| Scenario | Severance (USD) | Other (USD) | Total (USD) |
|---|---|---|---|
| Termination without cause | $125,185 | — | $125,185 |
| Termination on change in control | $125,185 | $59,746 | $184,931 |
| Change in control without termination | — | $59,746 | $59,746 |
Performance & Track Record (Company context during tenure)
| Metric | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Value of $100 investment (TSR) | $152.35 | $54.99 | $11.83 | $8.96 |
| Net Income ($ thousands) | $3,114 | $(92,470) | $(120,757) | $(97,897) |
| Adjusted EBITDA ($ thousands) | $(9,736) | $(236) | $(54,696) | $(20,847) |
Compensation Committee & Peer Benchmarking (context)
- The Human Capital & Compensation Committee, advised by Lyons, Benenson & Company Inc. (LB&Co.), benchmarks against a peer group and considers role scope, market data, and performance; it can also apply discretion in payouts for non-recurring items .
- The 2025 peer group (approved late 2024) included 16 companies with median revenues of $617.8 million and median market cap of ~$331.0 million, e.g., Bassett Furniture, Canada Goose, Culp, FIGS, Haverty, Kirkland’s, Lovesac, Traeger, Warby Parker, and others .
Investment Implications
- Pay-for-performance alignment: Annual cash incentives tied equally to Net Revenue and “Bonus Adjusted EBITDA,” but company results and TSR have been weak in recent years; scrutiny on whether targets and payouts (if any) align with outcomes is warranted given lack of disclosed target/actuals for 2023–2024 STIP .
- Retention vs. performance tilt: The March 12, 2025 special RSU grant (175,000 units) vests at CIC or in 2028 with pro rata vest on involuntary termination, and the August 7, 2025 amendment accelerates RSUs upon termination without cause—these features reduce retention risk but shift emphasis toward time/CIC-based outcomes rather than operating performance .
- Near-term liquidity/overhang timing: The special recognition bonus final 70% tranche is scheduled for Aug 1, 2025 (absent CIC), and RSU acceleration can occur upon certain termination scenarios—monitor for potential Form 4 activity, 10b5‑1 plan adoptions, or CIC developments that could influence insider selling pressure and stock overhang .
- Alignment safeguards: Prohibitions on pledging and restrictions on hedging, stock ownership guidelines (3x salary for NEOs/senior leaders), and an Exchange Act Rule 10D‑1/Nasdaq-compliant clawback policy support alignment and mitigate governance risk .
- Ownership “skin in the game”: Reported beneficial ownership increased from 26,842 shares (2023) to 44,610 shares (2024), still <0.1% of outstanding—investors may prefer continued progress toward guideline multiples via retention of vested shares .
Monitoring checklist: (i) any updates to CIC or severance terms in subsequent 8‑Ks; (ii) 10b5‑1 plan adoptions; (iii) vesting and sale activity around Aug 2025 and any CIC events; (iv) disclosure of STIP targets/actuals or LTIP performance outcomes in future proxies .