Evolv Sets Senior Employee Severance Plan
While Evolv's stock is down 70% since SPACing last year and has been subject to immense scrutiny, including this week's BBC investigation, Evolv's board has just approved a generous, albeit unfunded, severance plan for "senior level employees" at the company.
Inside this note, we examine the structure of this plan, how this benefits senior employees at the beleaguered company and what risks Evolv faces as it enters 2023.
Plan *********
***** ***** ********** *** ****** ** ******* ******** *** *** **** ****** * scenarios.
Commonplace *********** ******
** * "****** ***** ********" ** terminated ******* ***** (*.*., * *********** firing), **** ***** ******** **** ******* a ******* ** * ******' **** salary *** ***-***** ***** (** ** 12 ******).
Change ** ******* ******
** ***** ** * "****** ** control" (*.*., ***** ** ********), *** payout ** ************* ******. *** **** salary **** ** **% ******* **** just * *********** *********** (*.*., * minimum ** * ****** ** ** 18 ******), ***** ****** ***, **** importantly, "**** ************ ** *** ***********, unvested ***** *******, ********** ***** ***** or ***** ***** ******".
*** *******, *****'* *** ***** ** approximately **** * ******* ******* ** a *********** *********** *** **** $* million ** ***** *** ********, ** we ******** ** *** ***** *****:
Tiers *******
*** ** ***** ** ******* ** a "****** ***** ********" ** ******* but ** ** ** ***** *** CEO, *** ***, *** "********* ********" at *** *******. *******, ** *** also ****** ** ****** ** *** company's **********. *** *******, *** **** mentions ********* ******** ** **** * or *, ** *** ******* ***** shows:
*** *******’* ***** ********* *******, ***** George, *** ***** ********* *******, **** Donohue, **** *********** ** *** ********* Plan ** **** ************* *** *** Company’s ***** ********* ******** **** *********** in *** ********* **** ** ****** Tier * ** **** * ************ depending ** ***** *********.
*******, *** **** ********** ******** * "Tier *". ** ***** *** **** any ********* ** *** ******** **** defines *** ** ******** ** **** or *** *** ***** ** ** being * ***** ****, ** ** reasonable ** ******* **** ****** **** senior *********. ***** ***** ***** ***** the **** ****** ****** ******* ****** tiers:
**** ******** ****** *******, ********, ********'* ********** ****, *** ********* * ******* ** 15 ***** ********** *******. ***** ** a ********* ** ***** **** ********** listed ** ********:
********
*** **** ** "********" ** ** or **** *** **** ***** **** occurs, ***** **** **** ** *** the ******** ** **** ** ******** to ***** ***** ********:
*** **** ***** ** ********, *** all **** ******** ***** *** **** paid **** **** *** ******* ****** of *** *******
Good *** *********, *** *** *********
***** ***** ********* ** **** ****'* SPAC **** **** ************* ******* *****, Evolv's ****** ***** ********* *** *** well ********** *** ******* *****, **** if *****'* *********** **** *** *******.
*** *******, *** ******, ******** ** an ******** *** *** * **** on *** ***** *****, ** ******** would ** **** ******** / ********** to ******* *****.
*** ********, ****** ** *** **** would ******** **** ** ***?
*****'* ****** *** ***** ** ~$*** million, ***** **** ** **** ** of **** **** *** ~$*** ******* (and **** ****** ~$** ******* ** H1 ****).
**** ***** *****'* ********** ***** ~$*** million. ***** *****'* ******** *** *********** from ****, * ***'* ***** ****'* a **** ***** ** *** (*** of ****** ******** ***** **** ** pay * ******* *******). *** ******** may ***** *********** ** *** ***** may ******* *******, ******** ****** ** more **********.
**,
**** *** **** * ********** **** since ** ***** **** *** * board ****. ********** ** *** ****** they ***, ******** ***** ** ** the ******* ********* ***** ****.
**** ******* ** **** *** *** of ***** ****** ****** ******** ****?
**** ****** ********'* ********** ******** *** suffered *** ** *** ***** ***** tanking, **** ****** *** **** ******** actually ** *** ******** ******** ** the ***** ******* ****** ***** *** ponied ** $$ ** *** **** and **** ***** ***** ** ** the ****.
*** ***** ******** *** ******** ** acquire **** ******* ** **** ******* for **** ** ****** ********* ** vacuum ** *** ******* ** * bankruptcy **** ****?
*** ** **** ***** **** **** want *** *** ******* ** *** dollar **** **** *** **** **** before **** **** ** ** *** next *** *****.
***** *** **** ** **** ** $242 ******* ** *** *** ** June **** ************ ~$** ******* ** ** ****. Assume ****'* * ******** **** ****, they *** *** ** **** ** end ** ****.
*******, *** **** **** ** ****** to ******* ****** *** ** ************* increased ***** / ****** *********** (*.*., losing **** *****) ** ** ******* costs (*.*., ** **** ******* **** are *** ******* ***** ******).
***/***, ******* *** ** ***** ** not * ******* ******* *** *****.
*** ***** ******** *** ******** ** acquire **** ******* ** **** ******* for **** ** ****** ********* ** vacuum ** *** ******* ** * bankruptcy **** ****?
*** *******, ******** $*** ******* *** ************** *** *** $** ******* ** revenue ******* ******** ********** *** *********** cost *** ******* *** *** **** that **** ***** **** ** *** even **** ** *** ****** (***** as ** **** **** ***** *** be ****).
*** ********'* ********** ** **** ****** / ****** **** *****'* ****** **** is ********* * ******** ** ********* applications (****** ****** ****** ******* "****" is * *** ****** **** ****** concealed ****** *********).
*** *******, **** **** $*** ******* for ******** ****** *** *** $** million ** *******
******** ** * ****-**** ****** ** the ******** ******.
*** ** ***** ****'*.
***** **** ********** ** *** ******** market ***** **** ** ********* ** take ** *** ******** **-****** ********, I ***'* ***** ******** ** *******.
****** ** ******** *** *** ** be * ******, ****** ****** ******** by ****** ** ****.
****** **** **** *** ************ ** acquisition. ***** *** ** ********* ** see **** *** ****** **** ********.