Chris Krusmark
About Chris Krusmark
Christopher D. Krusmark (age 45) is Executive Vice President and, historically, Chief Human Resources Officer; he also served as Interim CFO from January–August 2023. He joined Sleep Number in 2005 and was promoted to CHRO in July 2020; prior roles included VP Sales Operations, Field Services & Training, and multiple finance leadership positions, with earlier experience on the audit staff at EY and Arthur Andersen . On April 30, 2025, he was appointed Executive Vice President, Chief Retail and People Officer, expanding his remit to retail experience and team member processes . Company performance context during his recent tenure: net sales declined 10.9% in 2024, net (loss) income was $(20.3)M, and Sleep Number TSR value of a $100 investment (2020 base) stood at $31 vs $195 for the S&P 400 Specialty Stores Index; 2023 net sales declined 10.7% with net (loss) income $(15.3)M .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Sleep Number | EVP & Chief Retail and People Officer | Apr 2025–present | Manage retail experience and real estate footprint; integrate people processes to strengthen customer-team connection and conversion . |
| Sleep Number | EVP & Chief Human Resources Officer | Jul 2020–Apr 2025 | Led HR, training, learning; focused on talent, performance, and organizational development . |
| Sleep Number | Interim CFO | Jan 2023–Aug 2023 | Stabilized finance leadership; received cash and RSU recognition grants for service . |
| Sleep Number | VP Sales Operations, Field Services & Training; earlier finance leadership | 2005–2015 | Led retail/home delivery operations and wholesale business development; supported sales, real estate, marketing, product finance . |
| EY; Arthur Andersen | Financial Audit Staff | Pre-2005 | Public accounting experience; foundational audit and controls expertise . |
External Roles
None disclosed in SEC filings reviewed .
Fixed Compensation
Latest detailed disclosure (FY 2023, as a Named Executive Officer):
| Metric | FY 2023 |
|---|---|
| Salary ($) | $425,192 |
| Target bonus (%) | 70% of salary (AIP target for other NEOs) |
| Cash bonus (interim CFO recognition) ($) | $70,000 |
| AIP (Non-Equity Incentive) ($) | $73,742 (24.8% of target; first-half progress payment only) |
| Stock Awards (grant-date fair value) ($) | $590,343 |
| Option Awards (grant-date fair value) ($) | $149,579 |
| All Other Compensation ($) | $17,014 |
| Total ($) | $1,325,870 |
Notes:
- AIP target % for NEOs remained 70% in 2023; mid-year progress payment feature was subsequently removed for executives in the 2024 AIP design .
- In 2024, the company-wide AIP design used adjusted EBITDA with a Shared Strategic Objective modifier; NEO payouts were 59.8% of target at the corporate level, but Krusmark was not a 2024 NEO .
Performance Compensation
Annual Incentive Plan (AIP) – FY 2023
| Component | Target/Design | Actual | Payout | Vesting |
|---|---|---|---|---|
| Adjusted EBITDA | Threshold $141.7M; Target $177.1M; Max $212.5M | $126.7M (below threshold) | No full-year payout; first-half progress payment earned (for NEOs in 2023 design) | Paid per plan; Krusmark received $73,742 (24.8% of target) |
Long-Term Incentive (LTI) – FY 2023 Grants
Design shifted to reduce dilution in 2024 (PSU/RSU mix), but Krusmark’s 2023 grants were PSUs and stock options, plus a special RSU for interim CFO service:
| Award | Grant Date | Shares/Units (#) | Strike/Value | Vesting/Performance |
|---|---|---|---|---|
| PSUs (annual LTI) | 3/15/2023 | 15,560 target | Target grant value included in Stock Awards | 3-year performance period (FY 2023–2025); metrics: annual Net Sales and NOP growth; payout 0–200% of target; ROIC vs WACC modifier can reduce payout . |
| Stock Options (annual LTI) | 3/15/2023 | 8,790 | $28.41 exercise price | Vest 1/3 annually over 3 years; 10-year term . |
| RSUs (interim CFO recognition) | 9/5/2023 | 5,815 | $148,283 grant-date fair value | Vest 50% per year over two years (two tranches) . |
2021 PSU payout (company-level reference): 43.1% of target overall for performance period FY 2021–FY 2023 (129.2% in 2021, 0% in 2022, 0% in 2023), ROIC modifier did not apply . 2022 PSU payout (FY 2022–FY 2024) was 0% based on results .
Equity Ownership & Alignment
| Item | Details |
|---|---|
| Beneficial ownership | 29,387 shares; <1% of outstanding |
| Near-term acquirable (60 days) | Options exercisable: 13,835 shares; PSUs vesting: 1,343 shares |
| Options moneyness (12/29/2023) | All unvested option strikes ($28.41, $61.66, $146.97) > year-end price $14.83 → out-of-the-money; suggests limited near-term exercise/selling pressure |
| Stock ownership guidelines | Executives: 3× base salary; must hold 50% of net shares until compliant; hedging and pledging prohibited |
| Group compliance snapshot | As of end-2023, average NEOs (ex-CEO) at 1.3× (below 3×); as of end-2024, average NEOs at 1.6× (still below guideline) |
| Clawback | Nasdaq-compliant executive clawback/forfeiture policy; LTI agreements include clawback for confidentiality breaches |
Employment Terms
- No individual employment contract; executives are at-will .
- Executive Severance Pay Plan:
- Base severance multiple (no change-in-control): 1× (salary + target AIP) for NEOs; (CEO 2×) .
- Double-trigger upon change-in-control: 2× for NEOs (CEO 3×), requires termination without cause or resignation for good reason within 2 years; includes extended non-compete/non-solicit commitment for 2 years post-termination .
- COBRA premium differential reimbursement (up to 1 year for NEOs) and outplacement support .
- LTI acceptance requires non-competition, non-solicitation, confidentiality, invention assignment, and arbitration provisions (where permitted by law) .
Investment Implications
- Alignment and incentives: AIP and PSU designs tie pay to adjusted EBITDA and multi-year Net Sales/NOP growth; ROIC modifier discourages value-destructive investment, consistent with pay-for-performance .
- Selling pressure: As of end-2023, Krusmark’s options are out-of-the-money and RSU/PSU vesting is multi-year, reducing near-term forced selling; beneficial ownership is modest (<1%) .
- Governance and risk: Strong clawback, hedging/pledging prohibitions, and double-trigger CoC terms reduce misalignment risk; however, group ownership below guideline indicates potential alignment gap amid share price declines .
- Execution context: His April 2025 elevation to Chief Retail & People Officer positions him at the nexus of customer conversion and labor productivity—key levers for margin recovery in a challenged demand environment; company results in 2022–2024 (declines in net sales and losses) underscore performance risk and the importance of operational turnaround .