Majid Emami
About Majid Emami
Dr. Seyed Majid Emami is SoundHound AI’s Chief Science Officer and Senior Vice President of Engineering (age 48), a co-founder who has led R&D in speech recognition and machine learning since 2006; he holds 16 patents and has BSc (University of Toronto, 2000) and MS/PhD in Electrical Engineering (Stanford, 2007) . Company performance during the recent period shows revenue growth from $31,129k (FY2022) to $84,693k (FY2024), with TSR rising to $265 (value of a $100 investment) in 2024; net losses remained, impacted by non-cash fair value changes .
| Metric | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|
| Revenue ($USD Thousands) | 31,129 | 45,873 | 84,693 |
| Net Income (Loss) ($USD Thousands) | (116,713) | (88,937) | (350,681) |
| TSR Index (Value of $100 Investment) | $24 | $28 | $265 |
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| SoundHound AI (Legacy SoundHound) | Vice President of Engineering | 2006–2022 | Led R&D for speech recognition and ML; 16 patents in Voice AI |
| SoundHound AI, Inc. | Chief Science Officer & SVP Engineering | 2022–present | Oversees core research and engineering for voice AI platform |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| — | None disclosed in company filings | — | — |
Fixed Compensation
- Not disclosed for Emami; he was not a Named Executive Officer (NEO) in 2024, so base salary and bonus specifics are not reported in the proxy .
Performance Compensation
- Company incentive framework uses measurable corporate metrics: Revenue, Adjusted EBITDA, and Annual Recurring Revenue (ARR); typical weighting for 2024 NEO plan was 25% each plus 25% individual performance. Targets were set but not disclosed; FY2024 achievement was 100% for Revenue and ARR, 0% for Adjusted EBITDA; the Compensation Committee applied negative discretion, paying 50% of target for NEOs due to broader financial considerations .
- Emami’s individual bonus metrics and payout are not disclosed; alignment can be inferred from company-wide practices but specifics for Emami are not reported .
| Metric | Weighting | 2024 Target | 2024 Actual Achievement | Payout Treatment |
|---|---|---|---|---|
| Revenue | 25% | Not disclosed | 100% | Committee reduced overall payouts to 50% of target |
| Adjusted EBITDA | 25% | Not disclosed | 0% | Committee reduced overall payouts to 50% of target |
| ARR | 25% | Not disclosed | 100% | Committee reduced overall payouts to 50% of target |
| Individual Performance | 25% | Not disclosed | 100% | Committee reduced overall payouts to 50% of target |
Equity Ownership & Alignment
- Emami is a controlling Class B holder and founder, with substantial voting influence; company prohibits insider hedging and pledging .
| Ownership Detail (as of Record Date March 27, 2025) | Value |
|---|---|
| Class B Common Shares Owned | 16,583,756 (51.0% of Class B) |
| Class A Common Shares Owned | 211,918 |
| RSUs Vesting within 60 Days of Record Date | 53,056 Class A shares |
| % of Total Voting Power | 23.9% |
Rule 10b5-1 Trading Plans (potential selling pressure and vesting monetization):
| Plan Adoption Date | First Trade Earliest | Plan End | Class B Sale Cap | Class A Sale Cap (RSUs/PSUs/options) |
|---|---|---|---|---|
| Aug 28, 2024 | Dec 1, 2024 | May 31, 2025 | Up to 2,400,000 shares | Up to 666,748 (options) and 254,067 (RSUs/PSUs) |
| Mar 11, 2025 | Jun 10, 2025 | Dec 31, 2025 | Up to 2,400,000 shares | Up to 562,850 (RSUs/PSUs) |
| Sep 23, 2025 | Jan 2, 2026 | Mar 31, 2026 | Up to 2,400,000 shares | Up to 301,297 (RSUs/PSUs) |
Policy alignment:
- Insider hedging and pledging are prohibited by policy .
- Executive Compensation Clawback Policy adopted Nov 2, 2023, compliant with SEC Rule 10D-1/Nasdaq 5608; company’s recovery analysis found no trigger during the lookback period .
Employment Terms
- Founder status and dual-class mechanics: Emami is defined as a “Founder”; Class B conversion triggers apply to founders other than the Co-Founder/CEO. If his employment terminates for Cause or due to resignation (other than for Good Reason), his Class B automatically converts to Class A on specified timetables, reducing voting power; the charter defines “Good Reason” and timing for notices/cure .
- Dual-class voting: Class B carries 10 votes per share vs. 1 vote for Class A; all shares vote together as a single class .
- No individual severance/change-in-control cash multiples for Emami are disclosed; NEO severance schedules are reported separately and do not include Emami .
- Related party transactions: None since January 1, 2024 .
Key provisions (founder mechanics):
- Automatic conversion of a Founder’s Class B to Class A upon certain termination/resignation events; unaffected for other founders if one founder’s conversion is triggered .
- “Good Reason” includes material breach, material adverse change in duties, compensation reductions (with certain exceptions), major relocation, or failure of successor to assume obligations; notice/cure windows specified .
Compensation Committee Analysis
- Independent Compensation Committee (Larry Marcus, Chair; Dr. Eric Ball) oversees executive compensation; uses Compensia for benchmarking; peer group updated July 2024 (e.g., Fastly, Braze, C3.ai, JFrog, PROS, Zuora, Intapp, nCino, Sprout Social, etc.) with focus on sub-$500M revenue and $500M–$3B market cap software comparables .
- Company emphasizes equity-heavy, at-risk pay, with strong governance (no tax gross-ups, no hedging/pledging) and performance linkage to Revenue, Adjusted EBITDA, and ARR .
Investment Implications
- Emami’s substantial Class B stake (23.9% voting power) provides strong founder alignment and influence; conversion triggers tied to employment status create retention leverage and governance clarity .
- Multiple 10b5-1 plans authorize significant potential sales (each up to 2.4M Class B, plus RSU/PSU liquidations), signaling periodic supply over 2024–2026; monitor Section 16 filings for execution pace and price levels .
- Incentive design underscores growth and profitability transition (Revenue/ARR met; Adjusted EBITDA missed; payouts cut 50% in 2024), suggesting discipline amid scaling; while Emami’s personal bonus details aren’t disclosed, equity ownership and policy constraints (no hedging/pledging; clawback) strengthen long-term alignment .
- No related-party transactions disclosed in 2024+, reducing governance red flags; continue tracking any changes to dual-class structure and founder-specific charter rights that could affect control dynamics and liquidity events .