Company: GROVW
Filing Date: 2025-04-29
Form Type: DEF 14A
Source: 0001628280-25-020642
Chunk: 26

Company: Grove Collaborative Holdings, Inc.
Filing Date: 2025-04-29
Form: DEF 14A
Chunk 26
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; depreciation and amortization; changes in fair values of derivative liabilities; transaction costs allocated to derivative liabilities upon closing of the Business Combination; interest income; interest expense; restructuring costs; loss on extinguishment of debt; provision for income taxes and certain litigation and legal settlement expenses that the Company does not consider representative of underlying operations.

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The target net revenue at which the named executive officers would earn 100% of their target payout attributed to the net revenue goal, subject to individual performance, was net revenue of $231.4 million, with no payout for net revenue performance below $222.1 million. The target adjusted EBITDA at which the named executive officers would earn 100% of their target payout attributed to the adjusted EBITDA goal, subject to individual performance, was adjusted EBITDA of $200,000, with no payout if adjusted EBITDA was lower than -$2.5 million. The named executive officers could earn up to 200% of their target payout for over-achievement against the net revenue and adjusted EBITDA goals. The amount of the payout for over-achievement and under-achievement was to be determined by straight line interpolation.

Our actual performance in 2024 was net revenue of $203.4 million and adjusted EBITDA of $1.3 million. As a result, the named executive officers participating in the annual incentive plan were entitled to no payout for achievement against the net revenue goal and were entitled to a payout of 122.3% of the amount of their incentive tied to the adjusted EBITDA goal due to the Company’s over-achievement against the adjusted EBITDA goal. Based on the weighting of the performance goals, the participating named executive officers were entitled to and received a payout of 61% of their target bonus in light of the Company’s performance against both the net revenue and adjusted EBITDA goals.

Equity Awards

To focus the Company’s executive officers on the Company’s long-term performance, we have granted equity compensation in the form of time-based restricted stock units (“RSUs”) and performance-based restricted stock units (“PSUs”). In February 2024, the Compensation Committee granted RSUs to Messrs. Cervantes and Clark and PSUs to Mr. Landesberg. See “Outstanding Equity Awards at 2024 Fiscal Year-End” below for a description of the 2024 equity awards to our named executive officers. The Compensation Committee did not grant an equity award to Mr. Yur