Alexander Blum
Unity SoftwareAbout Alexander Blum
Alexander Blum is Senior Vice President, Chief Operating Officer at Unity Software, age 62, appointed COO effective November 1, 2024 after joining as SVP, Corporate Development in July 2024 . He holds a B.S. in Mechanical Engineering from the University of Colorado Boulder and an MBA from Seattle University . Unity’s 2024 executive cash plan was tied 100% to company performance with Strategic Revenue targets and an Adjusted EBITDA “gate”; Unity achieved Adjusted EBITDA of $390M (below the $400M gate) and Strategic Revenue of $1,723M (below threshold), resulting in zero payouts under the plan .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Unity Software | SVP, Corporate Development | Jul 2024–Oct 2024 | Entered Unity executive leadership ahead of COO role |
| Tru Optik | Executive Chairman | Jan 2015–Apr 2021 | Led connected TV advertising data platform prior to its acquisition by TransUnion |
| AOL | VP of Product, Audience Business | Not disclosed | Product leadership at major web portal/online services company |
| Various private technology companies | Investor and advisor | Not disclosed | Advisory/investment roles across high-growth sectors |
External Roles
No current public company board service disclosed for Blum .
Fixed Compensation
| Item | 2024 | Notes |
|---|---|---|
| Base Salary ($) | $525,000 | Set by the Blum Role Change Agreement; prior salary as SVP Corporate Development was $450,000 |
| Target Bonus (%) | 75% of salary | Cash Incentive Bonus Plan target for 2024 |
| Target Bonus ($) | $172,592 | Pro-rated; no payout due to EBITDA gate miss |
| Actual Bonus ($) | $0 | Company failed both EBITDA gate and revenue threshold |
| Non-Plan Cash Bonus ($) | $25,000 | One-time promotion-related bonus, paid Feb 2025 |
Performance Compensation
2024 Annual Bonus Plan Outcomes
| Metric | Weighting | Target | Actual | Payout Impact |
|---|---|---|---|---|
| Adjusted EBITDA | Gate (required) | $400M | $390M | Gate failed → 0% payout |
| Strategic Revenue | 100% (company performance) | Threshold $1,760M; Target $1,800M; Max $1,880M | $1,723M | Below threshold → 0% payout |
RSUs (Time-Vesting)
| Grant | Grant Date | Shares | Vesting Schedule | Notes |
|---|---|---|---|---|
| Initial RSU | 7/8/2024 | 437,572 | 25% on Aug 25, 2025; then 6.25% quarterly thereafter (subject to service) | Hiring grant aligned to long-term value creation |
| Promotion RSU | 11/1/2024 | 59,555 | 6.25% on Nov 25, 2024; then 6.25% quarterly thereafter (subject to service) | Granted upon promotion to COO |
Stock Options (Time- and Performance-Vesting)
| Grant | Grant Date | Type | Shares | Exercise Price | Vesting | Expiration |
|---|---|---|---|---|---|---|
| Promotion Option | 11/1/2024 | Time-based | 39,703 | $20.83 | 1/48th monthly (subject to service) | 11/1/2034 |
| Performance Stock Option (PSO) | 7/8/2024 | Performance | 340,000 | $16.15 | Two tranches: 170k at $35, 170k at $50; require 60 consecutive days at hurdle plus service; vest eligibility dates July 8, 2025 and July 8, 2026 | 7/8/2034 |
MNPI Timing Disclosure (COO Option)
| Grant | Grant Date | Shares | Exercise Price | Grant Date Fair Value | Price Change Around MNPI Disclosure |
|---|---|---|---|---|---|
| COO Option | 11/1/2024 | 39,703 | $20.83 | $540,100 | (5.4)% change in closing price across MNPI disclosure window; award sized on 60-trading-day average |
Equity Ownership & Alignment
Ownership Position (as of March 1, 2025)
| Holder | Beneficial Shares | % of Outstanding |
|---|---|---|
| Alexander Blum | 6,378 | * (<1%) |
Outstanding Equity (as of Dec 31, 2024)
| Instrument | Exercisable | Unexercisable/Unearned | Exercise Price | Unvested RSUs (Shares) | Market Value of Unvested RSUs ($) |
|---|---|---|---|---|---|
| Promotion Option (11/1/2024) | 827 | 38,876 | $20.83 | — | — |
| PSO (7/8/2024) | — | 340,000 (unearned) | $16.15 | — | — |
| Initial RSU (7/8/2024) | — | — | — | 437,572 | $9,832,243 |
| Promotion RSU (11/1/2024) | — | — | — | 59,555 | $1,338,201 |
Alignment Policies
- Hedging and pledging of Unity stock are prohibited under the insider trading policy .
- Executive stock ownership guidelines require holding Unity shares at a meaningful multiple of salary; compliance status for Blum not disclosed .
Employment Terms
| Agreement | Effective Date | Key Cash Terms | Equity/Other Terms |
|---|---|---|---|
| Role Change Agreement (COO) | Nov 1, 2024 | Base salary increased to $525,000; one-time $25,000 bonus | Promotion RSU and option grants per long-term incentive program |
Severance and Change-of-Control Economics (as of year-end 2024)
| Scenario | Cash Severance | Health Contributions | Equity Acceleration | Notes |
|---|---|---|---|---|
| Qualified Termination (CoC) | — | — | — | Blum not entitled to severance benefits at year end aside from death/disability because employed <1 year |
| Qualified Termination (Non-CoC) | — | — | — | Same as above |
| Death/Disability | — | — | $5,617,100 | Represents acceleration of time-based equity per plan rules |
| CoC Treatment for Awards | — | — | Awards not assumed/continued/substituted vest in full immediately prior to CoC (single-trigger for non-assumed awards) |
Compensation Structure Analysis
- Increased fixed pay with promotion: base raised from $450k to $525k in Nov-2024; non-plan cash bonus reduced to $25k upon promotion .
- 2024 pay-for-performance discipline: 100% company-weighted bonus with EBITDA gating led to zero payout given underperformance (Adjusted EBITDA $390M vs $400M gate; Strategic Revenue $1,723M below threshold) .
- Shift toward performance equity: adoption of PSOs in 2024 for Blum with high price hurdles ($35 and $50) and service requirements; company moved to PSUs in early 2025 for executive refresh awards, further emphasizing performance linkage .
Risk Indicators & Red Flags
- Hedging/pledging prohibited (positive governance signal) .
- Severance coverage gap: as of year-end 2024, Blum had no severance benefits aside from death/disability due to <1 year tenure, implying limited protection in near term .
- MNPI timing review disclosed for COO option; award sizing based on 60-day average and small negative price change around disclosure window, mitigating timing concerns .
Equity Ownership & Vesting Pressure Indicators
- Near-term vesting: Promotion RSU began vesting 6.25% on Nov 25, 2024 and continues quarterly; Initial RSU first 25% cliff on Aug 25, 2025 then 6.25% quarterly, creating periodic taxable events and potential incremental selling pressure for tax coverage .
- Option/PSO leverage: 39,703 time-based options vest monthly; 340,000 PSOs require sustained stock price hurdles ($35/$50 for 60 consecutive days) before vesting—strong alignment but limited near-term liquidity absent price appreciation .
Performance & Track Record
- Promotion to COO in Nov-2024 after joining in Jul-2024; prior leadership roles at Tru Optik (through acquisition by TransUnion) and AOL product leadership underscore operational and M&A experience .
- Company-wide 2024 financial underperformance against bonus plan hurdles (EBITDA gate and revenue threshold), which zeroed bonuses including Blum’s; reinforces pay-for-performance structure .
Employment Terms – Additional Governance
- Stock ownership guidelines apply (meaningful multiple of salary); individual compliance status for Blum not disclosed .
- Clawback provisions, non-compete/non-solicit terms: not disclosed in the cited sections for Blum.
Investment Implications
- Pay-for-performance is intact: zero bonus payout in 2024 due to missed EBITDA gate and revenue threshold, aligning cash incentives to profitable growth and reducing misaligned payouts .
- Strong equity alignment but high hurdles: RSUs provide retention with staggered vesting; PSOs require substantial and sustained share price appreciation ($35/$50) before vesting—favorable for long-term holders but limits near-term realizable comp .
- Limited severance protections near term: absence of severance benefits at year end (other than death/disability) may modestly elevate retention risk until tenure thresholds are met; however, substantial unvested equity is a countervailing retention lever .
- Selling pressure likely episodic: quarterly RSU vesting and tax obligations can create periodic supply, though pledging/hedging prohibitions reduce misalignment risk; monitor vest dates (Nov/Feb/May/Aug cadence post-initial cliffs) and 60-day PSO hurdle tracking for potential signals .