SAN JOSE, CA – Roku , Inc. (NASDAQ:ROKU) has announced modifications to its executive compensation structure through changes to the company's Executive Supplemental Stock Option Program. The amendments, approved by the Compensation Committee of Roku's Board of Directors on Monday, will be effective starting January 1, 2025.
Under the revised program, eligible executives at or above the level of Senior Vice President may opt to reduce their annual base salary in exchange for monthly grants of fully vested non-statutory stock options. This arrangement is part of Roku's Amended and Restated 2017 Equity Incentive Plan.
The number of stock options granted each month will be calculated using a formula that considers the executive's elected salary reduction, the closing price of Roku's Class A common stock on the grant date, and a Stock Option Ratio determined by the Board of Directors or the Compensation Committee. The Stock Option Ratio is designed to approximate a Black-Scholes value and may be adjusted annually.
Stock options will be granted on the first trading day of each month, contingent upon an executive's continued service. However, if the grant date falls within a Filing Period associated with the company's securities filings, the grant date will be postponed to the first trading day following the Filing Period. These options will be exercisable for ten years following the grant date, irrespective of the executive's employment status with Roku.
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