Company: WRBY
Filing Date: 2025-04-28
Form Type: DEF 14A
Source: 0001104659-25-040245
Chunk: 37

Company: Warby Parker Inc.
Filing Date: 2025-04-28
Form: DEF 14A
Chunk 37
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 | 100%   |   |             |   | ​ | ​ | 200%    |   |             |   | ​ | ​ | 112.5%        |   |             |   | ​ |

(1) See Appendix A for the definition and a reconciliation of Adjusted EBITDA to the most directly comparable financial measure calculated and presented in accordance with GAAP. In order to motivate performance, the Compensation Committee set threshold performance levels for each metric. Achievement of target performance corresponded with a 100% payout, achievement of threshold performance corresponded with a 50% payout, and any performance below the threshold level resulted in no payout. Payouts began at the threshold and increased through various points to 100% of the target opportunity for achieving target performance, and through additional points to a maximum of 200% of the target opportunity (subject further to the stakeholder modifier discussed below). In addition, our Compensation Committee evaluates the Company’s performance against metrics relating to key stakeholders, which in 2024 included the customer, determined based on a net promoter score; the team, determined based on employee engagement index; and do-good, determined based on glasses distributed through the Company’s Buy a Pair, Give a Pair program, which, collectively, can move the aggregate calculated bonus achievement up or down by up to 20%. In establishing specific and objective targets around these broader goals, our Compensation Committee set targets that it determined were difficult to achieve and will not be achieved based on average or below average performance. In February 2025, our Compensation Committee reviewed and approved overall achievement of our 2024 financial corporate goals at 112.5% of target based on net revenue achievement of $771.3 million and Adjusted EBITDA achievement of $73.1 million, weighted as described above. In addition, the Compensation Committee determined there would be no adjustment to the aggregate calculation based on the achievement of stakeholder metrics. As a result, the Compensation Committee approved total corporate bonus payout at 112.5% of target. Awards to the NEOs under the 2024 Annual Bonus Program are made in fully vested RSUs, instead of cash, in order to further align the interests of our NEOs with those of our stockholders and to encourage retention and long-term growth. The number of fully vested RSUs granted to the applicable NEO was determined by dividing the earned incentive compensation amount payable under the 2024 Annual Bonus Program by the closing trading price of our Class A common stock on the grant date,