SEATTLE, WA - Marchex Inc. (NASDAQ:MCHX), a leader in business services, has announced the granting of stock options to its top executives as part of its annual equity awards review. The decision, made by the Compensation Committee of the Board of Directors, was filed with the SEC today.
On Thursday, the company awarded 250,000 options to CEO Edwin A. Miller and 200,000 options to Chief Revenue Officer Troy Hartless. These options will vest over a four-year period, with a quarter vesting on the first anniversary of the grant date and the rest vesting quarterly in 6.25% increments.
Moreover, both executives received further grants of 150,000 and 100,000 options respectively, which will vest fully on the fourth anniversary of the grant date. The exercise price for these options is set at the closing price of Marchex's Class B common stock on the grant date.
Furthermore, the Compensation Committee updated the employment terms for Miller and Hartless. In the event of termination without "Cause" or for "Good Reason" following a Change in Control, as defined in their offer letters, the executives will receive a lump sum payment equal to a year's base salary plus any earned bonus for the previous year, capped at 100% of their annual salary, along with a year of COBRA benefits.
In cases of termination due to death or disability, the officer or their estate will receive eighteen months of COBRA benefits. Additionally, in the event of a Change in Control or termination without "Cause" or due to death or disability before a Change in Control, all unvested stock options, restricted stock, and restricted stock units will vest immediately.
This move comes as part of Marchex's strategy to retain and incentivize its senior leadership team. The company, headquartered in Seattle, operates under the business services sector and is incorporated in Delaware. The information regarding these corporate decisions is based on the latest SEC filing by Marchex.
InvestingPro Insights
In light of Marchex Inc.'s recent executive equity awards, it's pertinent to consider the company's financial health and market performance. According to InvestingPro data, Marchex holds a market capitalization of approximately $67.44 million.
Despite a challenging environment, characterized by a -3.8% decline in revenue over the last twelve months as of Q1 2024, the company maintains a strong gross profit margin of 60.27%. This indicates that while revenue is contracting, Marchex is still effective at controlling the cost of goods sold, which can be a positive sign for potential investors.
InvestingPro Tips suggest that Marchex is managing its liquidity well, with liquid assets surpassing short-term obligations, and holding more cash than debt on its balance sheet. This can be particularly reassuring for stakeholders in the context of the company's recent stock option grants to executives, showing a level of financial stability.
On the other hand, analysts are not expecting the company to turn a profit this year, and the stock price has been noted for its volatility. Nevertheless, Marchex has shown a strong return over the last three months, with a total price return of 22.48%.
For readers interested in a deeper dive into Marchex's financials and additional InvestingPro Tips, which can offer further insights on the company's performance and outlook, visit https://www.investing.com/pro/MCHX. Also, remember to use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription for more comprehensive analysis and insights.
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