David Aufderhaar
Stitch FixAbout David Aufderhaar
David Aufderhaar, age 56, is Chief Financial Officer of Stitch Fix (since April 2023) and has been with the company since May 2019, previously serving as VP, Finance. He holds a B.S. in Finance from the University of Florida and oversees all financial operations, aiming to drive overall financial performance . Under his tenure, FY2025 net revenue was $1,267.2 million, Adjusted EBITDA reached $49.1 million, and active clients were 2,309k; the bonus and PSU programs were tied to these metrics and paid out above target (cash bonus multiplier 169.8% and PSU achievement 134.9%) . Company TSR for FY2025 reflected a $100 investment value of $20.27 versus a peer index at $179.30; net loss improved to $(28.739) million and Adjusted EBITDA increased to $49.139 million .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Stitch Fix | Chief Financial Officer | Apr 2023–present | Responsible for all financial operations and overall financial performance |
| Stitch Fix | VP, Finance | May 2019–Apr 2023 | Finance leadership across corporate finance and FP&A |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| VP, Finance | 4 years | Led corporate finance, FP&A, and deal analytics | |
| Visa | Finance leadership roles | Not disclosed | Finance leadership role(s) |
| Y&R Inc. | Finance leadership roles | Not disclosed | Finance leadership role(s) |
| Proudfoot Consulting | Finance leadership roles | Not disclosed | Finance leadership role(s) |
Fixed Compensation
| Fiscal Year | Base Salary ($) | Target Bonus % of Salary | Actual Bonus Paid ($) |
|---|---|---|---|
| 2023 | 439,711 | — | 168,220 (executive bonus program) |
| 2024 | 550,480 | — | 174,020 (executive bonus program) |
| 2025 | 585,769 (reflects Nov-2024 increase to $600,000) | 50% | 498,928 (executive bonus program) |
- Base salary increased from $550,000 to $600,000 in Nov 2024 .
- No special perquisites beyond broad-based employee benefits; company provided 401(k) match to eligible employees (no match listed for Aufderhaar in FY2025) .
Performance Compensation
FY2025 Annual Cash Bonus Metrics and Outcome
| Metric | Weight | Threshold | Target | Stretch | Maximum | Actual | Payout |
|---|---|---|---|---|---|---|---|
| Net Revenue ($mm) | 40% | 1,117 | 1,167 | 1,217 | 1,316 | 1,267.2 | 175.4% |
| Adjusted EBITDA ($mm) | 40% | 9 | 25 | 40 | 61 | 49.1 | 171.7% |
| Active Clients (000s) | 20% | 2,177 | 2,237 | 2,297 | 2,417 | 2,309 | 155.0% |
| Total Bonus Multiplier | 100% | — | — | — | — | — | 169.8% |
- Plan design is strictly corporate—no individual metrics; payout scale from 50% to 200% .
FY2025 Equity Awards (RSUs and PSUs) – Grants and Vesting
| Award Type | Grant Date | Shares (Target) | Shares (Max) | Grant-Date Fair Value ($) | Vesting Schedule |
|---|---|---|---|---|---|
| RSUs | 10/28/2024 | 390,625 | — | 1,218,750 | 8.33% quarterly starting Mar 12, 2025 (12 quarters) |
| PSUs (Rev/Adj. EBITDA/Active Clients) | 10/28/2024 | 390,625 | 585,942 | 1,646,527 | Earned 134.9% overall; 41.67% vests Dec 17, 2025, remaining 8.33% quarterly over next 7 quarters (subject to service) |
- PSU metric weighting mirrors cash bonus (Revenue 40%, Adjusted EBITDA 40%, Active Clients 20%) with a 50–150% payout range; FY2025 PSU achievement was 134.9% .
Compensation Structure Analysis
- Shift from options-heavy 2023 ($4.296m options) to RSU/PSU mix in 2025 ($2.865m stock awards; no options), lowering risk and increasing time-based/metric-based equity .
- No discretionary bonuses reported; payouts based on pre-set metrics .
- Independent consultants engaged; peer group updated to include AKA, BARK, BMBL, FNKO, GRPN, SSTK, HNST and remove RTR, WISH, ANF, URBN, YELP, TCP; committee does not target a specific percentile .
Equity Ownership & Alignment
| Ownership Detail | Amount |
|---|---|
| Beneficial Ownership (Class A) | 1,383,555 shares; 1.17% of Class A |
| Options Exercisable | 666,665 (strike $5.02, exp. 04/02/2033) and 208,333 (strike $5.02, exp. 04/02/2033) |
| Options Unexercisable | 133,335 (strike $5.02, exp. 04/02/2033) and 291,667 (strike $5.02, exp. 04/02/2033) |
| Unvested RSUs | 9,105; 66,668; 145,834; 325,522 (various prior grants; market value references provided in proxy) |
| Unearned PSUs (FY2025 target) | 390,625 target shares |
| In-the-money status at 8/1/2025 close ($4.49) | Options at $5.02 strike were not in-the-money as of 8/1/2025 |
| Stock Ownership Guidelines | Execs must hold the lesser of 2x base salary or 220,000 shares; compliance required within 5 years; all covered individuals are compliant or within the period |
| Hedging/Pledging | Prohibited for executives and directors (short sales, derivatives, margin pledging) |
| Clawback | Policy to recover incentive-based compensation upon accounting restatement (3-year lookback) |
Employment Terms
| Term | Detail |
|---|---|
| Offer Letter | Dated April 1, 2023; CFO base initially $550,000; increased to $600,000 in Nov 2024; at-will employment |
| Severance (No CIC) | 6 months base salary + up to 6 months COBRA for CFO upon termination without cause or for good reason (double-check definitions below) |
| Severance (With CIC; Double-Trigger) | 12 months base salary + 12 months COBRA + full acceleration of unvested equity upon qualifying termination within 1 month before/12 months after CIC |
| “Cause” / “Good Reason” | Defined in offer letter (felony, fraud, willful misconduct, etc.; material reduction in pay/duties or relocation >35 miles) |
| Tax Gross-ups | None; 280G cutback/greater-of approach applied |
| Confidentiality/IP | Standard proprietary information and inventions agreement; confidentiality obligations |
Estimated change-in-control economics (illustrative at 8/2/2025 and $4.49/share): total ~$4.84 million for CFO, primarily equity acceleration ($4.21 million RSUs), plus cash ($0.6 million) and health coverage ($31,021) .
Risk Indicators & Red Flags
- Late Section 16 filings (Form 4) for Aufderhaar dated March 17, 2025 were filed late due to administrative delay—process control risk to monitor .
- Hedging/pledging banned, mitigating alignment risks .
- No tax gross-ups; double-trigger CIC provisions limit windfalls .
- Say-on-pay support: 2024 approval exceeded 98% of votes cast, indicating broad shareholder acceptance of pay program design .
Performance & Track Record
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| Net Loss ($000s) | (171,973) | (128,840) | (28,739) |
| Adjusted EBITDA ($000s) | 16,814 | 29,281 | 49,139 |
| TSR – Value of $100 Investment | 22.17 | 18.47 | 20.27 |
- FY2025 operational targets exceeded across revenue, Adjusted EBITDA, and active clients, leading to above-target cash bonus and PSU outcomes .
Compensation Committee & Peer Group (Context)
- Compensation Committee members: Tim Baxter (Chair), Kofi Amoo-Gottfried; fully independent .
- Updated peer group (mid-2024): added AKA, BARK, BMBL, FNKO, GRPN, SSTK, HNST; removed CHS (due to acquisition), RTR, WISH (size), ANF, URBN, Yelp (size), TCP; no fixed percentile targeting .
Director Governance (Not Applicable)
- Aufderhaar is not a director; director governance and compensation items omitted .
Investment Implications
- Strong alignment: majority of at-risk pay tied to revenue, Adjusted EBITDA, and active clients; PSU achievement at 134.9% shows pay-for-performance mechanics activating on outperformance . Hedging/pledging prohibitions and ownership guidelines reinforce alignment .
- Retention dynamics: Significant unvested RSUs and PSUs with quarterly vesting plus a December 17, 2025 cliff for 41.67% of FY2025 PSUs should support retention but may create periodic selling supply as units settle; monitor Form 4 activity after vesting dates .
- Deal economics: Double-trigger CIC with full equity acceleration and 12 months cash/benefits (no tax gross-up) lowers friction in strategic transactions while preserving retention value until a qualifying termination .
- Execution risk: Historical reliance on options (2023) has shifted to RSUs/PSUs (2025), reducing binary outcomes and emphasizing durable performance; late Form 4 in 2025 suggests a small governance process gap to monitor .
- Performance trajectory: Material improvement in Adjusted EBITDA and narrowing net loss under current leadership supports incentive payouts and indicates operational progress; TSR remains challenged vs peer index, which may pressure future pay-for-performance calibration and investor expectations .