Daryl Stemm
About Daryl Stemm
Daryl Stemm is Chief Financial Officer of SmartRent, serving since November 2023 and acted as Interim Principal Executive Officer from July 2024 to February 2025; he is 64 and holds a Bachelor of Business Economics, Accounting from the University of California, Santa Barbara . Company performance under his finance leadership includes FY2024 total revenue of $174.9M, SaaS revenue of $51.6M (+26% YoY), and improved Adjusted EBITDA to $(9.9)M; SmartRent ended FY2024 with $142.5M in cash and a $75M undrawn credit facility and repurchased 15.2M shares for $28.6M . In Q3 2025, SmartRent reported revenue of $36.2M (-11% YoY), ARR of $56.9M (+7% YoY), net loss improved to $(6.3)M, Adjusted EBITDA to $(2.9)M, and exited the quarter with $100M cash and no debt; Stemm emphasized completion of a $30M annualized cost reduction and a run-rate path to Adjusted EBITDA and cash flow neutrality exiting 2025 .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| SmartRent, Inc. | Senior Vice President, Finance | Dec 2021–Nov 2023 | Led finance through pre-CFO period and SPAC-era scale |
| SmartRent, Inc. | Director, Financial Reporting | Jan 2020–Dec 2021 | Built SEC reporting discipline ahead of public company demands |
| Best Western International, Inc. | Director, SEC Reporting | Jul 2018–Jan 2020 | Established public-company reporting rigor |
| Invitation Homes Inc. (NYSE: INVH) | Director, SEC Reporting | 2017–2018 | Supported reporting at a large SFR REIT |
| Home Director, Inc. | Chief Financial Officer | 2001–2009 | Operated as CFO at tech/home services firm |
| Catalyst Semiconductor, Inc. | Chief Financial Officer | 1989–1998 | Semiconductor CFO experience |
External Roles
No public-company directorships or external board roles disclosed for Stemm in SmartRent filings .
Fixed Compensation
| Component | 2024 Value | Notes |
|---|---|---|
| Annual Base Salary | $325,000 | NEO base salary table (fixed cash) |
| Target Bonus (% of Salary) | 60% | Executive Incentive Plan target |
| Actual Annual Cash Incentive | $117,000 | Paid at 36% of base salary |
| CEO-Transition Retention (Mgmt Committee) | $162,500 | One-time retention tied to interim CEO transition |
Performance Compensation
| Metric | Weighting | Target | Actual | Payout | Vesting |
|---|---|---|---|---|---|
| Revenue (FY2024) | — | — | — | Included in cash incentive outcome | N/A (cash) |
| Adjusted EBITDA (FY2024) | — | — | — | Included in cash incentive outcome | N/A (cash) |
| Expense Management vs Budget | Cap reduced to 150% | — | — | Included in cash incentive outcome | N/A (cash) |
| Individual Leadership | — | — | — | Included in cash incentive outcome | N/A (cash) |
| Total Annual Incentive | — | — | — | $117,000 (36% of salary) | N/A (cash) |
The Compensation Committee exercised discretion to reduce the cap on the expenses metric from 200% to 150% for 2024 to align pay with financial results .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Total Beneficial Ownership | 192,478 shares (Class A) |
| Ownership % of Outstanding | <1% (based on 192,701,171 shares outstanding) |
| Components (per footnote) | 66,272 shares held directly; 119,450 options exercisable within 60 days; 6,756 RSUs settleable within 60 days (footnote as filed) |
| Options – Exercisable | 38,308 (1/24/2023 grant) at $2.87, expiring 1/24/2033 |
| Options – Unexercisable | 114,924 (1/24/2023) at $2.87; 171,337 (1/23/2024) at $3.36; expiring 1/24/2033 and 1/23/2034 |
| RSUs – Unvested | 10,177 (4/19/2021); 10,834 (1/18/2022) |
| Market Value of Unvested RSUs | $17,810 (10,177 x $1.75) and $18,960 (10,834 x $1.75) at 12/31/2024 close |
| Vesting Schedules | Options: 25% on first anniversary, then annual installments; 1/23/2024 grant vests 25% on 1/23/2025 then three annual installments . RSUs: quarterly/monthly tranches per grant footnotes . |
| Hedging/Pledging | Hedging prohibited; pledging restricted with pre-approval and limits; no shares of directors or NEOs currently pledged or in margin accounts |
| Stock Ownership Guidelines | Section 16 officers: 2x base salary; five-year phase-in; all executives and directors within phase-in period as of 12/31/2024 |
Outstanding Equity Detail (as of 12/31/2024)
| Award | Grant Date | Exercisable | Unexercisable | Exercise Price | Expiration | Unvested RSUs (#) | RSU Market Value ($) |
|---|---|---|---|---|---|---|---|
| Stock Option | 1/24/2023 | 38,308 | 114,924 | $2.87 | 1/24/2033 | — | — |
| Stock Option | 1/23/2024 | — | 171,337 | $3.36 | 1/23/2034 | — | — |
| RSU | 4/19/2021 | — | — | — | — | 10,177 | $17,810 |
| RSU | 1/18/2022 | — | — | — | — | 10,834 | $18,960 |
Employment Terms
| Provision | Outside Change-in-Control Period | Within Change-in-Control Period |
|---|---|---|
| Qualifying Termination Trigger | Termination without Cause or for Good Reason; release and other conditions required | Termination without Cause or for Good Reason during CoC period; release and other conditions required |
| Cash Severance | 12 months base salary, paid in installments | 12 months base salary + 100% Target Bonus, paid in installments |
| COBRA | Up to 12 months reimbursement | Up to 12 months reimbursement |
| Bonus Treatment | Prior Year Bonus (if earned and unpaid) + Prorated Bonus for year of termination | Prior Year Bonus + Prorated Bonus |
| Equity Treatment | Immediate vesting of equity grants (time-based) | Immediate vesting of equity grants |
| 280G Cut-Back | Not specified for Stemm; company uses cut/back or full pay approach in CEO letters, not stated for Executives |
- Clawback policy adopted in Nov 2023 to recover excess incentive compensation upon accounting restatements per SEC/NYSE rules .
- Officer compensation set by Board/Comp Committee; retains authority and duties language for officers .
Investment Implications
- Alignment: Cash bonus driven by revenue, Adjusted EBITDA, expense discipline, and leadership, with committee discretion used to cap the expense metric at 150%, indicating pay-for-performance discipline; Stemm’s 2024 payout was 36% of salary ($117k) despite transformation-year headwinds .
- Ownership and selling pressure: Upcoming option vest tranches (1/23 and 1/24 anniversary schedules) and ongoing RSU monthly/quarterly vesting create periodic liquidity windows; however, hedging is prohibited and pledging restricted with no current pledges, reducing misalignment risk .
- Retention risk: Standard severance provides 12 months salary and COBRA; change-in-control terms add Target Bonus installments and immediate vesting upon Qualifying Termination, which is protective but not excessive, helping retention through potential strategic events .
- Execution track record: Finance leadership coincides with improved Adjusted EBITDA, cost structure reset ($30M annualized), and strong liquidity, supporting progress toward run-rate EBITDA and cash flow neutrality exiting 2025, consistent with Stemm’s stated commitments .
- Peer benchmarking: Compensation program uses a refreshed peer set and independent consultant (Semler Brossy), suggesting governance rigor and market-based pay calibration that mitigates pay inflation risk .