UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934 (Amendment No.          )
Filed by the Registrant x
Filed by a Party other than the Registrant o
Check the appropriate box:
o   Preliminary Proxy Statement
o   Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
x   Definitive Proxy Statement
o   Definitive Additional Materials
o   Soliciting Material under §240.14a-12

SHUTTERSTOCK, INC.
(Name of Registrant as Specified in its Charter)
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
x No fee required.
o Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
  (1) Title of each class of securities to which transaction applies:
  (2) Aggregate number of securities to which transaction applies:    
  (3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):
  (4) Proposed maximum aggregate value of transaction:     
  (5) Total fee paid:   
o Fee paid previously with preliminary materials.
o Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.
  (1) Amount Previously Paid:
  (2) Form, Schedule or Registration Statement No.:    
  (3) Filing Party:    
  (4) Date Filed: 


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Shutterstock, Inc.
350 Fifth Avenue, 21st Floor
New York, New York 10118


April 22, 2021
Dear Stockholder:

On behalf of the Board of Directors and our senior management team, we are pleased to invite you to attend our 2021 Annual Meeting of Stockholders (the “2021 Annual Meeting”) to be held on Thursday, June 3, 2021 at 10:00 a.m. Eastern Time. The 2021 Annual Meeting will be a virtual stockholder meeting, conducted via live webcast.

You will be able to attend the 2021 Annual Meeting online and submit your questions during the meeting. In order to attend the 2021 Annual Meeting, you must register at http://viewproxy.com/shutterstock/2021/htype.asp
by 11:59 p.m. Eastern Time on May 31, 2021. On the day of the 2021 Annual Meeting, if you have properly registered, you may enter the meeting by clicking on the link provided and entering the password you received via e-mail in your registration confirmation. You will also be able to vote your shares electronically at the 2021 Annual Meeting. Please note that you will not be able to attend the 2021 Annual Meeting in person.

We are pleased to provide access to our proxy materials over the Internet under the U.S. Securities and Exchange Commission’s “notice and access” rules. As a result, on or about April 22, 2021, we mailed a Notice of Internet Availability of Proxy Materials (the “Notice”) to many of our stockholders instead of a paper copy of this proxy statement and our 2020 Annual Report to Stockholders (the “2020 Annual Report”). The Notice contains instructions on how to access those documents over the Internet. The Notice also contains instructions on how to receive a paper copy of our proxy materials by mail. If you received our proxy materials by mail, the Notice, proxy statement, 2020 Annual Report and proxy card were enclosed. Continuing to employ this distribution process conserves natural resources and reduces the costs of printing and distributing our proxy materials. We encourage you to read our 2020 Annual Report, as it includes our audited financial statements and provides important information about our business.

Details regarding the business to be conducted at the 2021 Annual Meeting are described in this proxy statement and in the Notice.

Your vote is important. Whether or not you plan to attend the 2021 Annual Meeting via live webcast, we hope you will vote as soon as possible. You may vote over the Internet, as well as by telephone, or, if you requested to receive or received printed proxy materials, by mailing a proxy or voting instruction form. Please review the instructions on each of your voting options described in this proxy statement, the accompanying proxy card, or the Notice you received in the mail. Voting over the Internet or by telephone, written proxy or voting instruction card will ensure your representation at the 2021 Annual Meeting regardless of whether you attend 2021 Annual Meeting.

Thank you for your ongoing support of, and continued interest in, Shutterstock.
Sincerely,
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Stan Pavlovsky
Chief Executive Officer



SHUTTERSTOCK, INC.
NOTICE OF 2021 ANNUAL MEETING OF STOCKHOLDERS
Time and Date:
10:00 a.m. Eastern Time, on Thursday, June 3, 2021.
Place:
Via live webcast.
Register at http://viewproxy.com/shutterstock/2021/htype.asp
You will not be able to attend the 2021 Annual Meeting in person.
Admission:
To participate, vote or submit questions during the 2021 Annual Meeting, conducted via live webcast, you must register at http://viewproxy.com/shutterstock/2021/htype.asp by 11:59 p.m. Eastern Time on May 31, 2021. On the day of the 2021 Annual Meeting, if you have properly registered, you may enter the meeting by logging in using the link and password you received via e-mail in your registration confirmation. The 2021 Annual Meeting will begin promptly at 10:00 a.m. Eastern Time and will open for entry at 9:45 a.m. Eastern Time.
Items of Business:
To elect the Class III director nominees named in this proxy statement for a term expiring at the 2024 Annual Meeting of Stockholders;
To cast a non-binding advisory vote to approve named executive officer compensation (“say-on-pay”);
To ratify the appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2021; and
To transact such other business as may properly come before the 2021 Annual Meeting or any adjournments or postponements thereof.
Record Date:
You are entitled to vote only if you were a Shutterstock, Inc. stockholder as of April 14, 2021.
Voting:
Your vote is important. Whether or not you plan to attend the 2021 Annual Meeting via live webcast, we encourage you to read this proxy statement and submit your voting instructions as soon as possible. For specific instructions on how to vote your shares, please refer to the instructions on the Notice of Internet Availability of Proxy Materials you received in the mail, the section titled “Questions and Answers About the Proxy Materials and the 2021 Annual Meeting” beginning on page 2 of this proxy statement and, if you requested to receive or received printed proxy materials, your enclosed proxy card.
We are again pleased to take advantage of the Securities and Exchange Commission rule allowing companies to furnish proxy materials to their stockholders over the Internet. We believe this e-proxy process expedites stockholders' receipt of proxy materials, while lowering the costs and reducing the environmental impact of our annual meeting.

On or about April 22, 2021, we mailed to our beneficial stockholders a Notice containing instructions on how to access our Proxy Statement and 2020 Annual Report and how to vote online.

All stockholders that previously requested paper delivery of communications from us will continue to receive a paper copy of the proxy statement, proxy card and 2020 Annual Report by mail. The Proxy Statement contains instructions on how you can (i) receive a paper copy of the Proxy Statement, Proxy Card and 2020 Annual Report if you only received a Notice by mail or (ii) elect to receive your Proxy Statement and 2020 Annual Report over the Internet if you received them by mail this year.


  By Order of the Board of Directors,
 
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John Lapham
General Counsel and Corporate Secretary

New York, New York
April 22, 2021



Important Notice Regarding the Availability of Proxy Materials for the 2021 Annual Meeting to Be Held on June 3, 2021.
Our Proxy Statement and 2020 Annual Report to Stockholders are available at http://www.viewproxy.com/shutterstock/2021


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QUESTIONS AND ANSWERS ABOUT THE PROXY MATERIALS
AND THE 2021 ANNUAL MEETING
Proxy Materials
1.
Why am I receiving these materials?
The Board of Directors (the “Board”) of Shutterstock, Inc. (“Shutterstock” or the “Company”) is providing these proxy materials to you on the Internet, or, upon your request, has delivered printed or e-mailed electronic proxy materials to you, in connection with the solicitation of proxies for use at the 2021 Annual Meeting of Stockholders to be held on Thursday, June 3, 2021 at 10:00 a.m. Eastern Time (the “2021 Annual Meeting”). As a stockholder of record, you are invited to attend the 2021 Annual Meeting and are requested to vote on the items of business described in this proxy statement. This proxy statement includes information that we are required to provide to you under Securities and Exchange Commission (“SEC”) rules and that is designed to assist you in voting your shares.
2. What is included in the proxy materials?
The proxy materials include:
a.our proxy statement for the 2021 Annual Meeting;
b.our 2020 Annual Report to Stockholders (the “2020 Annual Report”), which includes our Annual Report on Form 10-K for the fiscal year ended December 31, 2020; and
c.the proxy card or a voting instruction form for the 2021 Annual Meeting.
3. What information is included in the proxy statement?
The information in this proxy statement relates to the proposals to be voted on at the 2021 Annual Meeting, the voting process, our Board and Board committees, the compensation of directors and certain executive officers, corporate governance matters, and certain other required information.
4. Why did I receive a notice in the mail regarding the Internet availability of proxy materials instead of a full set of printed proxy materials?
Pursuant to rules adopted by the SEC, we may furnish proxy materials, including this proxy statement and our 2020 Annual Report, to our stockholders electronically via the Internet instead of mailing printed copies. Unless a stockholder previously requested paper delivery of communications from us, a stockholder will receive a Notice of Internet Availability of Proxy Materials instructing the stockholder as to how to access and review all of the proxy materials on the Internet.
5. How can I access the proxy materials over the Internet?
The Notice of Internet Availability of Proxy Materials, proxy card and voting instruction form contain instructions on how to view our proxy materials for the 2021 Annual Meeting on the Internet and vote your shares. The proxy statement and 2020 Annual Report, as well as other financial information, are also available on our Investor Relations website at: investor.shutterstock.com.
Our proxy materials are also available for viewing at www.viewproxy.com/shutterstock/2021.
6. What is householding?
The SEC permits us to deliver a single copy of the Notice of Internet Availability of Proxy Materials, and if applicable, the proxy statement and 2020 Annual Report, to multiple stockholders who share the same address unless we
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received contrary instructions from one or more of the stockholders. Each stockholder will continue to receive a separate proxy card. By “householding” we can reduce printing costs, mailing costs and fees.
If you are a stockholder of record and wish to receive a separate Notice of Internet Availability of Proxy Materials or the proxy statement and 2020 Annual Report, or if your household is receiving multiple sets of these documents and would prefer to receive only one set, please contact our Corporate Secretary at the address set forth below. Stockholders owning their shares through a bank, broker, or other nominee may request to discontinue or begin householding by contacting their bank, broker or nominee. You can also request additional copies or notify us that you no longer wish to participate in householding by sending a written request to the Corporate Secretary, Shutterstock, Inc., 350 Fifth Avenue, 21st Floor, New York, New York 10118.
Voting Information
7. What proposals am I voting on at the 2021 Annual Meeting?
You are voting on three proposals at the 2021 Annual Meeting:
Proposal One: Election of each of Thomas R. Evans and Paul J. Hennessy to the Board, each to serve as a Class III director for a three-year term ending at the 2024 Annual Meeting of Stockholders or until such director’s successor has been duly elected or appointed and qualified, or until such director’s earlier resignation or removal;
Proposal Two: Approval, on an advisory basis, of the compensation of our named executive officers, as disclosed in this proxy statement; and
Proposal Three: Ratification of the appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2021.
We will also consider other business that properly comes before the 2021 Annual Meeting.
8. How does the Board recommend I vote on the proposals?
The Board recommends that you vote your shares:
FOR the election of each of Thomas R. Evans and Paul J. Hennessy to the Board, each to serve as a Class III director for a three-year term ending at the 2024 Annual Meeting of Stockholders or until such director’s successor has been duly elected or appointed and qualified, or until such director’s earlier resignation or removal;
FOR the approval of the compensation of our named executive officers, as disclosed in this proxy statement; and
FOR the ratification of the appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2021.
Unless instructed to the contrary in the proxy, the shares represented by the proxies will be voted as recommended by the Board for each proposal. If any other matter properly comes before the 2021 Annual Meeting, the proxy holders will vote on that matter in their discretion.
9. Who is entitled to vote at the 2021 Annual Meeting?
The record date for the 2021 Annual Meeting is April 14, 2021 (the “Record Date”). Stockholders of record and beneficial owners as of that date are entitled to vote at the 2021 Annual Meeting. You are considered a stockholder of record if you hold shares of our common stock, $0.01 par value per share (“Common Stock”) in your name in an account with our stock transfer agent, American Stock Transfer & Trust Company (“AST”). You are a beneficial
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owner and your shares are considered to be held in “street name” if you hold Common Stock indirectly through a broker, bank or other nominee.
On the Record Date, we had 36,555,123 shares of Common Stock outstanding. A list of stockholders as of that date will be available for inspection upon request at the virtual 2021 Annual Meeting and during ordinary business hours at our principal executive offices located at 350 Fifth Avenue, 21st Floor, New York, New York 10118 for any purpose germane to the annual meeting for ten days before the 2021 Annual Meeting, upon request to our Corporate Secretary.
10. How do I vote my shares?
You can vote your shares:
By Internet: You can vote electronically in accordance with the instructions on your proxy card or, if you are a beneficial owner, in accordance with any electronic voting instructions provided to you by the record holder, as applicable.
By Telephone: If you received your proxy materials by mail or if you request paper copies of the proxy materials, you can vote by calling the number indicated and following the instructions on your proxy card or, if you are a beneficial owner, in accordance any telephonic voting instructions provided to you by the record holder, as applicable.
By Proxy Card: If you received your proxy materials by mail or if you request paper copies of the proxy materials, you can vote by completing and returning your signed proxy card in the postage-paid envelope. If you vote by telephone or Internet, you should not return your proxy card unless you wish to change your vote.
During the Annual Meeting: Instructions on how to vote while participating in our 2021 Annual Meeting live via webcast are posted on http://viewproxy.com/shutterstock/2021/htype.asp under Frequently Asked Questions (FAQ). Beneficial owners of shares held in “street name” may not vote during the 2021 Annual Meeting without prior registration and submission of a legal proxy from the bank, broker or other agent. All stockholders must register in advance of the 2021 Annual Meeting at http://viewproxy.com/shutterstock/2021/htype.asp and beneficial owners of shares held in “street name” will be assigned a Virtual Control Number to vote their shares at the 2021 Annual Meeting.

Telephone and Internet voting facilities for stockholders of record will be available 24 hours a day and will close at 11:59 p.m. Eastern Time on June 2, 2021.
11. How many votes am I entitled to per share?
Each holder of Common Stock is entitled to one vote on all matters to come before the 2021 Annual Meeting for each share held as of the Record Date.
12. Can I change my vote or revoke my proxy?
You may change your vote at any time prior to the taking of the vote at the 2021 Annual Meeting. If you are a stockholder of record, you may change your vote and grant a new proxy bearing a later date by:
signing and returning a new proxy card with a later date;
submitting a later-dated vote by telephone or via the Internet (only your last telephone or Internet vote will be counted) by 11:59 p.m. Eastern Time on June 2, 2021;
participating in the 2021 Annual Meeting and voting again by telephone or via the Internet; or
sending a written notice of revocation to our Corporate Secretary at Shutterstock, Inc., Attn: Corporate Secretary, 350 Fifth Avenue, 21st Floor, New York, New York 10118 prior to the 2021 Annual Meeting.
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13. Is my vote confidential?
Proxy instructions, ballots, and voting tabulations that identify individual stockholders are handled in a manner that protects your voting privacy. Your vote will not be disclosed either within Shutterstock or to third parties, except: (1) as necessary to meet applicable legal requirements, (2) to allow for the tabulation of votes and certification of the vote, and (3) to facilitate a successful proxy solicitation.
14. How many shares must be represented to conduct business at the 2021 Annual Meeting?
The quorum requirement for holding the 2021 Annual Meeting and transacting business is that holders of a majority of the issued and outstanding stock entitled to vote as of the Record Date must be present at the 2021 Annual Meeting or represented by proxy. Both abstentions and broker non-votes (described below) are counted for the purpose of determining the presence of a quorum. As of the Record Date, we had 36,555,123 shares of Common Stock outstanding.
15. What is a “broker non-vote”?
If you hold shares beneficially in street name and do not provide your broker with voting instructions, your shares may constitute “broker non-votes.” Broker non-votes occur on a matter when a broker is not permitted to vote on that matter without instructions from the beneficial owner and instructions are not given. These matters are referred to as “non-routine” matters. All of the matters scheduled to be voted on at the 2021 Annual Meeting are “non-routine,” except for the proposal to ratify the appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2021.
In tabulating the voting result for any particular proposal, shares that constitute “broker non-votes” will not be counted for purposes of determining whether the proposal is approved. Thus, “broker non-votes” will not affect the outcome of any matter being voted on at the 2021 Annual Meeting.
16. How are my votes counted?
In the election of directors, you may vote “FOR” all or some of the nominees or your vote may be “WITHHELD” with respect to one or more of the nominees. In tabulating voting results for the election of directors, only “FOR” or “WITHHELD” votes are counted. Neither abstentions nor “broker non-votes” will have any effect on the outcome of the voting with respect to the election of directors.
For the other items of business to be brought before the 2021 Annual Meeting, you may vote “FOR,” “AGAINST,” or “ABSTAIN.” If you “ABSTAIN” in any of the other items of business to be brought before the 2021 Annual Meeting, the abstention has the same effect as a vote “AGAINST.”
If you provide specific instructions with regard to certain items, your shares will be voted in accordance with your instructions on such items. If you are a record holder and no instructions are indicated, the shares will be voted as recommended by the Board. If you hold shares beneficially in “street name” and you do not provide specific instructions on certain items, then your shares will be counted as “broker non-votes” on non-routine matters and will be voted in accordance with the broker instructions for routine matters in the broker’s discretion.
17. What is the voting requirement to approve each of the proposals?
In the election of directors, our amended and restated bylaws (the “Bylaws”) provide for the election of directors by a plurality of the votes cast. This means that the individuals nominated for election to the Board who receive the highest number of “FOR” votes will be elected. Broker non-votes and withheld votes are not considered votes cast for or against the nominee under a plurality voting standard.
The approval of the remaining two proposals described below require the affirmative “FOR” votes of the holders of the majority of shares of Common Stock represented by proxy or by attending the meeting at the 2021 Annual Meeting and entitled to vote thereon:
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advisory vote to approve the compensation of our named executive officers; and
ratification of the appointment of PricewaterhouseCoopers LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2021.
18. What happens if a director receives a plurality, but not a majority, of votes cast at the 2021 Annual Meeting?
In an uncontested election, if a nominee for director who is an incumbent director is elected by a plurality of the votes cast but does not receive the vote of at least the majority of the votes cast (i.e., the number of shares voted “FOR” a director’s election does not exceed 50% of the total number of votes cast with respect to that director’s election, including votes to withhold authority), the director is deemed elected.
However, under our director resignation policy, any nominee for director who, in an uncontested election, has more votes “WITHHELD” than “FOR” his or her election is expected to promptly tender his or her resignation for consideration by the Nominating and Corporate Governance Committee and subsequently by the Board. Our director resignation policy is incorporated into our Corporate Governance Guidelines, a copy of which can be found through the “Corporate Governance” link on our Investor Relations page at investor.shutterstock.com.
19. What happens if additional matters are presented at the 2021 Annual Meeting?
Our Board does not intend to present any business at the 2021 Annual Meeting other than the proposals described in this proxy statement. However, if any other matter properly comes before the 2021 Annual Meeting, the persons named as proxy holders, Jarrod Yahes and Jennifer Munoz, will act on such matters in their discretion as permitted.
20. How is the Company soliciting proxies for the 2021 Annual Meeting?
The Board is sending you this proxy statement in connection with the Board’s solicitation of proxies for use at the 2021 Annual Meeting. In addition to the mailing of these proxy materials, the solicitation of proxies or votes may be made in person, by telephone, or by electronic communication by our directors, officers, and employees, who will not receive any additional compensation for such solicitation activities. In addition, we have retained Alliance Advisors, L.L.C. (“Alliance”) to assist us with the distribution of proxy materials and vote solicitation.

Shutterstock will pay the entire cost of preparing, assembling, printing, mailing, and distributing these proxy materials and soliciting votes. Upon request, we will reimburse banks, brokers, custodians, nominees and fiduciaries for their reasonable charges and expenses to forward our proxy materials to beneficial owners in accordance with applicable rules.
Pursuant to our agreement with Alliance, we will pay Alliance approximately $8,000, plus expenses, for the solicitation services being provided in connection with the 2021 Annual Meeting.
21. Where can I find the voting results of the 2021 Annual Meeting?
We will announce preliminary voting results at the 2021 Annual Meeting and publish the final voting results in a Current Report on Form 8-K filed with the SEC within four business days after the 2021 Annual Meeting.
Attending the 2021 Annual Meeting
22. How do I attend the 2021 Annual Meeting?
The 2021 Annual Meeting will be entirely online. You will not be able to attend the meeting in person. In order to listen to and participate in the 2021 Annual Meeting, you must register at http://viewproxy.com/shutterstock/2021/htype.asp by 11:59 p.m. Eastern Time on May 31, 2021. On the day of the 2021 Annual Meeting, if you have properly registered, you may enter the meeting by clicking on the link provided and entering the password you received via e-mail in your registration confirmation. The webcast will start at 10:00 a.m. Eastern Time on June 3, 2021. Stockholders may vote and submit questions while connected to the 2021 Annual Meeting on the Internet.
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23. What do I need in order to participate in the 2021 Annual Meeting online?
In order to participate in the 2021 Annual Meeting live via the Internet, you must register at http://viewproxy.com/shutterstock/2021/htype.asp by 11:59 p.m. Eastern Time on May 31, 2021. If you are a registered holder, you must register using your name and e-mail address. If you hold your shares beneficially through a bank or broker, you must provide a legal proxy from your bank or broker during registration and you will be assigned a Virtual Control Number in order to vote your shares during the 2021 Annual Meeting. If you are unable to obtain a legal proxy to vote your shares, you will still be able to attend the 2021 Annual Meeting (but will not be able to vote your shares) so long as you demonstrate proof of stock ownership. Instructions on how to connect and participate via the Internet, including how to demonstrate proof of stock ownership, are posted at http://viewproxy.com/shutterstock/2021/htype.asp.
24. What if during the check-in time or during the 2021 Annual Meeting I have technical difficulties or trouble accessing the webcast?
We will have technicians ready to assist you with any technical difficulties you may have accessing the webcast. Please be sure to check in by 9:45 a.m. Eastern Time on June 3, 2021, the day of the 2021 Annual Meeting, so we may address any technical difficulties before the meeting begins. If you encounter any difficulties accessing the webcast during the check-in or meeting time, please e-mail VirtualMeeting@viewproxy.com or call 866-612-8937. The platform we are using for the meeting will require a software installation or the ability to run a temporary application in order for you to join the meeting.  Please test the system on your computer prior to the meeting date.

Additional Information
25. What is the deadline to propose actions for consideration at next year’s Annual Meeting of Stockholders or to nominate individuals to serve as directors?

Stockholders may present proper proposals for inclusion in our proxy statement and for consideration at the next annual meeting of stockholders by submitting their proposals in writing to our Corporate Secretary in a timely manner. For a stockholder proposal to be considered for inclusion in our proxy statement for our 2022 Annual Meeting of Stockholders, our Corporate Secretary must receive the written proposal at our principal executive offices no later than December 23, 2021. If we hold our 2022 Annual Meeting of Stockholders more than 30 days before or after June 3, 2022 (the one-year anniversary of our 2021 Annual Meeting), then notice of a stockholder proposal must be received not later than the 90th day prior to the 2022 Annual Meeting of Stockholders or the 10th day following the date on which public announcement of the date of the 2022 Annual Meeting of Stockholders is first made by Shutterstock. We will disclose the new deadline by which stockholder proposals must be received under Item 5 of Part II of our earliest possible Quarterly Report on Form 10-Q or, if impracticable, by any means reasonably determined to inform stockholders.
Stockholder proposals must also otherwise comply with the requirements of Rule 14a-8 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Proposals can be addressed to Shutterstock, Inc., Attn: Corporate Secretary, 350 Fifth Avenue, 21st Floor, New York, New York 10118.
Our Bylaws also establish advance notice procedures for certain matters, including for stockholders who wish to present a proposal before an annual meeting of stockholders but do not intend for the proposal to be included in our proxy statement or for stockholders who wish to nominate individuals for election to the Board. To be timely for our 2022 Annual Meeting of Stockholders, our Corporate Secretary must receive written notice at our principal executive offices:
not earlier than the close of business on February 3, 2022, and
not later than the close of business on March 5, 2022.

Stockholders must also comply with certain other applicable requirements contained in our Bylaws. With regards to nominations for director at our 2022 Annual Meeting of Stockholders, the notice must include all information about the nominee that must be disclosed in proxy solicitations pursuant to Regulation 14A under the Exchange Act (including the nominee’s written consent to being named as a nominee and serving as a director) and a description of all material monetary agreements during the past three years and any other material relationships, between such stockholder and a beneficial owner on whose behalf the nomination is made and their affiliates and associates, or others acting in concert, on the one hand, and each proposed nominee, and his/her affiliates and associates, or
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others acting in concert, on the other hand, including all information that would be required to be disclosed pursuant to Rule 404 under Regulation S-K if the stockholder were a “registrant,” all as described in our Bylaws. The notice must also include certain additional information about and representations by the stockholder and/or the beneficial owner, all as detailed in our Bylaws.
If a stockholder who has notified us of his or her intention to present a proposal at an annual meeting does not appear to present his or her proposal at such meeting, we are not required to present the proposal for a vote at such meeting. We reserve the right to reject, rule out of order or take other appropriate action with respect to any proposal or nomination that does not comply with these and other applicable requirements contained in our Bylaws and applicable laws.
26. How may I communicate with the Board?
Stockholders and other interested parties may communicate directly with the Board, with any director, or with the independent directors as a group or any other group of directors by writing to our Corporate Secretary at Shutterstock, Inc., 350 Fifth Avenue, 21st Floor, New York, New York 10118, with a request to forward the communication to the intended recipient or recipients. Messages received with such a request will be forwarded to the appropriate director or directors.
27. Where can I obtain corporate governance materials?
Our corporate governance materials are posted on our Investor Relations website (investor.shutterstock.com) under the link for “Corporate Governance.” In addition, stockholders may obtain paper copies of our corporate governance materials by sending a written request to Shutterstock, Inc., Attn: Corporate Secretary, 350 Fifth Avenue, 21st Floor, New York, New York 10118.
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DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
Directors and Executive Officers
The names of our directors and executive officers and their ages, positions and biographies as of April 22, 2021 are set forth below. Our executive officers are appointed by, and serve at the discretion of our Board. There are no family relationships among our directors or executive officers.
Name Age Position
Jonathan Oringer 46 Founder and Executive Chairman of the Board
Rachna Bhasin 48 Director
Deirdre Bigley 56 Director
Jeff Epstein(1)
64 Director
Thomas R. Evans 66
Director (Nominee for election at the 2021 Annual Meeting)
Paul J. Hennessy 56
Director (Nominee for election at the 2021 Annual Meeting)
Alfonse Upshaw 51 Director
Stan Pavlovsky 49 Director and Chief Executive Officer
Jarrod Yahes 46 Chief Financial Officer
Peter Silvio 43 Chief Technology Officer
(1) Mr. Epstein has advised the Company that he will step down from the Board effective June 4, 2021.
Jonathan Oringer has served as our Executive Chairman of the Board since April 2020. Prior to assuming the role of Executive Chairman, Mr. Oringer served as Chief Executive Officer since the founding the Company in 2003. Prior to founding Shutterstock, Mr. Oringer served as a director of several private companies. Mr. Oringer has served on the Columbia Engineering Board of Visitors since 2019 and the Board of Directors for the Partnership for New York, a nonprofit organization, since 2013. Mr. Oringer holds a B.S. in computer science and mathematics from State University of New York at Stony Brook and an M.S. in computer science from Columbia University.
Rachna Bhasin has served as a member of our Board since July 2019. Ms. Bhasin is the Founder/CEO of EQ Partners, a strategic advisory, consulting and investment company serving early stage US and UK companies in the areas of technology and media, and Co-Founder of Pacifica Investments, an advisory, consultancy and investment firm focused on identifying and amplifying technologies, brands and entrepreneurs from New Zealand and the Pacific Rim. Ms. Bhasin was Chief Business Officer of Magic Leap, Inc., a spatial computing company, from October 2015 through January 2019 and prior to that, served as SVP, Corporate Strategy and Business Development at Sirius XM Radio, Inc. from November 2010 through October 2015. Ms. Bhasin also held positions at Dell, Inc., where she led the company’s consumer strategic partnership and personalization, and at EMI Music North America as Vice President of Business Development. Since March 2016, Ms. Bhasin has also served as a member of the Board of Directors of Ryman Hospitality Properties (NYSE: RHP), a hotel, resort, entertainment and media company, where she is a member of the Nominating and Corporate Governance Committee. Ms. Bhasin also serves as a member of the Board of Directors of Blade, a private company focused on cloud gaming, as well as a member of the Board of Directors of Audiomack, a private company providing a music streaming and audio distribution platform. Ms. Bhasin holds a Bachelor of Commerce and Administration with Honors from the Victoria University of Wellington in New Zealand and an M.B.A. from Harvard Business School.
Deirdre Bigley has served as a member of our Board since May 2016. Ms. Bigley joined Bloomberg, L.P, a global business and financial information and news leader, in 2009 and became Chief Marketing Officer in 2013. Prior to joining Bloomberg, L.P., Ms. Bigley spent thirteen years at International Business Machines Corporation (IBM), serving in several capacities, including serving in her final years as Vice President of Worldwide Advertising and Interactive and Vice President of Worldwide Brand. Ms. Bigley has served on the Board of Directors of Wix.com, Inc., a cloud based development platform, since November 2017. Ms. Bigley also currently serves as a member of the Board of Directors of Slice, an online pizza ordering platform, and MAKERS, a media brand accelerating the women’s movement. Ms. Bigley holds a B.A. in English Literature from West Chester University.
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Jeff Epstein has served as a member of our Board since April 2012. Mr. Epstein is an Operating Partner at Bessemer Venture Partners, a venture capital firm, which he joined in November 2011, and has served as Co-Chief Executive Officer and Chief Financial Officer of Apex Technology Acquisition Corporation, a special purpose acquisition vehicle, since August 2019. Mr. Epstein has also served as a lecturer in the Department of Management Science & Engineering at Stanford University since 2014. Mr. Epstein was Executive Vice President and Chief Financial Officer of Oracle Corporation, the world’s largest enterprise software company, from September 2008 to April 2011. Mr. Epstein has served as a director of Twilio Inc., a cloud communication platform, since July 2017 and served as a director of Booking Holdings Inc., a public travel services company, from April 2003 through June 2019. Mr. Epstein holds a B.A. from Yale College and an M.B.A. from Stanford University.
Thomas R. Evans has served as a member of our Board since March 2012. From January 2014 through December 2015, Mr. Evans served as Advisor to the Board of Bankrate, Inc., a leading aggregator of financial rate information, and from March 2004 until December 2013, when he retired, Mr. Evans served as its President and Chief Executive Officer and a director. Mr. Evans served as a director of Millennial Media, Inc., a public mobile marketplace company, from 2014 to November 2015 and as a director of Future Fuel Corp., a public chemical manufacturing company, from 2005 until September 2015. Mr. Evans served as a director of Angie's List, Inc., an online platform that connects home service professionals to customers, from February 2016 to September 2017, including serving as its Chairman of the Board from October 2016 through September 2017, until it was merged with the HomeAdvisor business of IAC/InterActiveCorp. Mr. Evans currently serves as a director of ANGI Homeservices Inc. and serves as a member of its Audit Committee and Chairman of its Compensation Committee. As of February 2021, Mr. Evans also serves as a director of G Squared Ascend I Inc., a special purpose acquisition company, and serves as a member of its Audit, Compensation and Nominating and Corporate Governance Committees. Mr. Evans holds a B.S. in business administration from Arizona State University.
Paul J. Hennessy has served as a member of our Board since April 2015. Since June 2016, Mr. Hennessy has served as Chief Executive Officer and member of the Board of Directors of Vroom, Inc., an online pre-owned car retailer. Prior to joining Vroom, from April 2015 through June 2016, Mr. Hennessy served as Chief Executive Officer of priceline.com, a provider of online travel and travel related reservation and search services. From November 2011 to March 2015, Mr. Hennessy served as Chief Marketing Officer of Booking.com, an online booking accommodations provider. From July 2006 to October 2011, Mr. Hennessy was Chief Distribution Officer of priceline.com. Mr. Hennessy holds a B.S. in marketing management from Dominican College and an M.B.A. from Long Island University.
Alfonse Upshaw has served as a member of our Board since December 2020. Mr. Upshaw is Senior Vice President, Corporate Controller & Chief Accounting Officer of Kaiser Foundation Health Plans and Hospitals (Kaiser Permanente). Mr. Upshaw also served as Interim Regional Chief Financial Officer for Kaiser Permanente’s Northwest region for several months in 2020. Previously, Mr. Upshaw was an audit partner with Deloitte where he served Fortune 500 public as well as high growth private clients in a variety of industries. Mr. Upshaw has served on not-for-profit boards and several advisory committees including the Kennedy-King Memorial Scholarship Foundation, Windrush School Board of Trustees, the UC Berkeley Center for Financial Reporting and Management, and the American Heart Association Research Roundtable. Mr. Upshaw holds a B.S. in Business Administration from the University of California, Berkeley and is a Certified Public Accountant, a member of the American Institute of Certified Public Accountants and a lifetime member of the National Association of Black Accountants, Inc.
Stan Pavlovsky has served as our Chief Executive Officer and a member of our Board since April 2020. Prior to this, Mr. Pavlovsky served as our President and Chief Operating Officer from June 2019 and our Co-Chief Operating Officer and Head of Strategic Operations from April 2019. Prior to joining the Company, Mr. Pavlovsky served as the Executive Vice President, President of Meredith Digital at Meredith Corporation, a media and marketing company, from August 2016 through March 2019. From March 2013 through August 2016, Mr. Pavlovsky served as President of Allrecipes.com, a Meredith company. Prior to joining Meredith, Mr. Pavlovsky was Vice President eCommerce, Merchandising & Marketing at Walgreens Boots Alliance, Inc., a pharmacy store chain, from June 2011 through March 2013. Mr. Pavlovsky previously spent several years at Drugstore.com, an internet retailer in health and beauty care products, which was acquired by Walgreens in 2011, serving in several capacities, including serving in his final years as Vice President, Drugstore.com. Mr. Pavlovsky holds a B.A. from California State University, Northridge and an M.B.A. from City University of Seattle.
Jarrod Yahes has served as our Chief Financial Officer since December 2019. Prior to joining Shutterstock, Mr. Yahes served as Chief Financial Officer at Zeta Global, a marketing technology company, from October 2016 to November 2019, Chief Financial Officer at Jackson Hewitt Tax Services, Inc., a provider of tax preparation services,
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from April 2015 to October 2016, and served in multiple capacities at ExlService Holdings, a business process solutions company, from February 2005 to April 2015, advancing to Senior Vice President, Controller. Mr. Yahes earned a B.S. in applied economics from Cornell University and an MBA from the University of California at Berkeley.
Peter Silvio has served as our Chief Technology Officer since November 2019. Mr. Silvio joined Shutterstock in June 2017 and served as VP of Engineering and Architecture and was promoted to SVP of Engineering prior to becoming Chief Technology Officer. Prior to joining Shutterstock, Mr. Silvio spent over 20 years at Thomson Reuters, a multimedia company providing news and information-based tools to professionals, serving in multiple capacities and eventually advancing to the role of Global Head of Application Development and Platform Technology. Mr. Silvio attended SUNY Empire State University where he studied Computer Science and Information Systems.
Board Structure, Diversity, Director Nominations and Qualifications
Our Board is divided into three classes for purposes of election. One class is elected at each Annual Meeting of Stockholders to serve for a three-year term. In February 2020, the Board increased the size of the Board from six to seven directors and appointed Mr. Pavlovsky to the Board. In December 2020, the Board further increased the size of the Board from seven to eight directors and appointed Mr. Upshaw to the Board. The directors are classified into three classes as follows: Jonathan Oringer, Rachna Bhasin and Stan Pavlovsky each serve as a Class I director with a term ending at the 2022 Annual Meeting of Stockholders; Deirdre Bigley, Jeff Epstein and Alfonse Upshaw each serve as a Class II director with a term ending at the 2023 Annual Meeting of Stockholders; and Thomas R. Evans and Paul J. Hennessy each serve as a Class III director with a term ending at the 2021 Annual Meeting.
Our Nominating and Corporate Governance Committee is charged with identifying, evaluating and recommending director nominees to the full Board, as well as considering candidates for election to the Board recommended by stockholders. In evaluating the suitability of individual Board members, the Nominating and Corporate Governance Committee takes into account many factors, including international business experience; experience in industries beyond technology; financial experience and a good reputation within the financial community; business management experience and the potential to succeed top management in the event Board intervention is necessary on an unexpected basis; business contacts, business knowledge and influence that may be useful to our business and product lines; and knowledge about our industries and technologies. The Nominating and Corporate Governance Committee will also factor into its determination the following qualities with respect to potential director nominees:
reputation for integrity, honesty and adherence to high ethical standards;
demonstrated business acumen, experience and ability to exercise sound judgments in matters that relate to the current and long-term objectives of the Company and willingness and ability to contribute positively to the decision-making process of the Company;
a commitment to understand the Company and its industry and to regularly attend and participate in meetings of the Board and its committees;
interest and ability to understand the sometimes conflicting interests of the various constituencies of the Company, which include stockholders, employees, customers, contributors and the general public, and to act in the interests of all stockholders; and
no actual or perceived conflict of interests that would impair the nominee’s ability to represent the interests of all the Company’s stockholders and to fulfill the responsibilities of a director.
One of our core principles is to “Seek Diversity,” and, to further promote that principle, we adopted a Diversity, Equity & Inclusion Mission Statement that states our goal, among others, of building a workforce that is, at all levels, representative of the diverse global community we serve. The Board shares the Company’s commitment to fostering inclusion and diversity, and is committed to having its members represent a variety of identities, perspectives, backgrounds, and personal and professional experiences, bringing a broad variety of expertise to support the Company’s goals. The Board evaluates each individual in the context of the Board as a whole, with the objective of recommending a group that can best support the success of the business and, based on its diversity of experience,
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represent stockholder interests through the exercise of sound judgment. The below graphs show the self-identified diversity characteristics provided by our Board members.
CHART-762FD3FEC7A84F318B81A.JPG CHART-7F9A2E20CBAE4642A551A.JPG
In determining whether to recommend a director for re-election, the Nominating and Corporate Governance Committee also considers the director’s past attendance at meetings and participation in and contributions to the activities of the Board as well as the director’s service on the boards of other public companies to ensure that the director can carry out director duties in a responsible manner. Upon determining the need for additional or replacement Board members, the Nominating and Corporate Governance Committee will identify one or more director candidates and evaluate each candidate under the criteria described above based on information provided to the committee by the Company or a third-party or may also include discussions with persons familiar with the candidate, an interview of the candidate or other actions the committee deems appropriate. Based on its assessment of each candidate’s independence, skills and qualifications and the criteria described above, the Nominating and Corporate Governance Committee will make recommendations regarding potential director candidates to the Board. The Nominating and Corporate Governance Committee may consult with management or engage third parties to assist in the search for director candidates or to assist in gathering information regarding a candidate’s background and experience.
We have adopted a director resignation policy, pursuant to which any nominee for director who, in an uncontested election, receives more votes “WITHHELD” than “FOR” his or her election is expected to promptly tender his or her resignation for consideration by the Nominating and Corporate Governance Committee and subsequently by the Board. Our director resignation policy is incorporated into our Corporate Governance Guidelines, a copy of which can be found through the “Corporate Governance” link on our Investor Relations page at investor.shutterstock.com.
Our Board, upon the recommendation of the Nominating and Corporate Governance Committee, has voted to nominate Mr. Evans and Mr. Hennessy for election to the Board as Class III directors at the 2021 Annual Meeting to serve for a term of three years until the 2024 Annual Meeting of Stockholders, and until their respective successors have been elected and qualified or, if sooner, until their respective resignation or removal. Mr. Evans and Mr. Hennessy are currently members of the Board.
Corporate Governance and Board Matters
Corporate Governance, Business Conduct and Compliance
We have a strong commitment to effective corporate governance and have in place a comprehensive corporate governance framework for our operations. We have adopted Corporate Governance Guidelines, last reviewed and approved in January 2021, which, in conjunction with our amended and restated certificate of incorporation (the “Charter”), our Bylaws, and charters of the standing committees of our Board, form the framework for our corporate governance.
We have also adopted a Code of Business Conduct and Ethics (“Code of Ethics”), last reviewed and approved in January 2021, that applies to all of our directors, officers and employees, including our senior financial officers. Our Code of Ethics requires, among other things, that all of our directors, officers and employees comply with all laws, attempt to avoid conflicts of interest, conduct business in an honest and ethical manner and otherwise act with integrity and in the Company’s best interest. In addition, our Code of Ethics imposes obligations on all of our directors, officers and employees to maintain books, records, accounts and financial statements that are accurate
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and that comply with applicable laws and with our internal controls, as well as providing for disclosure controls and procedures.
We maintain a corporate governance page on our website that includes key information about our corporate governance initiatives, including our Corporate Governance Guidelines and Code of Ethics. The corporate governance page can be found on our Investor Relations website at investor.shutterstock.com under the link for “Corporate Governance.” We will promptly post under the same link amendments to or waivers, if any, of our Code of Ethics, involving our directors and executive officers.
We also maintain policies to ensure our operations not only are compliant with applicable law, the rules and regulations of the SEC, and the listing standards of the New York Stock Exchange (“NYSE”), but also promote good corporate governance principles and standards of behavior. A summary of our corporate governance policies is set forth in the following table.
Policy Description
Insider Trading and Disclosure Policy Sets forth the Company’s limitations regarding trading in Company securities and the handling of non-public material information.
Whistleblower Policy Sets forth the procedures for the reporting of suspected misconduct, illegal activities or fraud, including any questionable accounting, internal accounting controls and auditing matters, or other violations of federal or state laws or the Code of Ethics and the receipt, treatment and investigation of such reports.
Related Person Transaction Policy Sets forth the policies and procedures for reviewing, approving and ratifying proposed transactions with directors, executive officers, significant stockholders or any other related persons.
Anti-Corruption Policy Provides detailed guidance for our Board members, officers, employees and third parties acting on our behalf on prohibited actions under anti-bribery and anti-corruption laws.
Anti-Harassment Policy Provides that all persons shall be treated with dignity and respect and shall not be subject to discriminatory practices and harassment and sets forth the policies and procedures for reporting and investigation suspected harassment.
Corporate Communications and Disclosure Policy Sets forth guidelines on fair and complete disclosure of Company information to current and future stockholders, the investing public and the financial community to ensure compliance with SEC rules and regulations.
Economic Sanctions Compliance Policy Provides that all Company activities by directors, officers, employees and agents acting on behalf of the Company comport fully with applicable embargoes and other economic sanctions requirements.
Executive Compensation Clawback Policy Sets forth the guidelines pursuant to which the Company may recover certain incentive-based compensation payments made to executive officers and non-executive officers, as applicable, if the Company is required to prepare an accounting restatement of its financial statements as a result of (i) material noncompliance with any financial reporting requirements under the federal securities laws, (ii) negligence, misconduct, wrongdoing or violation of any Company policies or (iii) willful, knowing or intentional misconduct or violation of any Company policy or applicable legal and regulatory requirements.
Hedging Policy Provides that all Company employees, officers and directors may not engage in (1) hedging or derivative transactions or any other speculative transactions (hedging or derivative actions include (i) “cashless” collars, (ii) forward contracts, (iii) equity swaps or (iv) other similar related transactions); (2) any transactions that suggest speculation in the Company’s Stock; or (3) any short sale, “sale against the box” or any equivalent transaction involving the Company’s stock.
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A copy of any of the policies set forth above may be requested from the Corporate Secretary, Shutterstock, Inc., 350 Fifth Avenue, 21st Floor, New York, New York 10118.
Director Independence
Our Corporate Governance Guidelines state that a majority of the Board will consist of directors who meet the independence requirements of the NYSE listing standards, as well as the criterion related to contributions to tax-exempt organizations. A copy of our Corporate Governance Guidelines, which include our definitions for independence, can be found on our Investor Relations website at investor.shutterstock.com under the link for “Corporate Governance.” Our Board conducts an annual review to determine whether each of our directors qualifies as independent as defined in our Corporate Governance Guidelines and the NYSE listing standards applicable to board composition. The Board makes an affirmative determination regarding the independence of each director, based upon the recommendation of the Nominating and Corporate Governance Committee.
Our Board has undertaken a review of its composition, the composition of its committees and the independence of each director. Based upon information requested from and provided by each director concerning his or her background, employment and affiliations, including family relationships, our Board has determined that Ms. Bigley and Ms. Bhasin and each of Messrs. Epstein, Evans, Hennessy and Upshaw, representing six of our eight directors, do not have a relationship that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director and that each of these directors is “independent” as that term is defined under the applicable rules and regulations of the SEC and the listing requirements and rules of the NYSE.
Board Leadership Structure
Our Corporate Governance Guidelines are designed to promote the functioning of the Board and its committees. These Guidelines address Board composition, Board functions and responsibilities, qualifications, leadership structure, committees and meetings.
Our Corporate Governance Guidelines do not indicate a particular Board structure, and the Board is given the flexibility to select its Chairman and our Chief Executive Officer in the manner that it believes is in the best interests of our stockholders. Following a thorough review by the Nominating and Corporate Governance Committee and the independent members of the Board as well as a multi-year discussion on Chief Executive Officer succession planning, the Board determined in February 2020 to separate the positions of Chairman and Chief Executive Officer and to create the role of Executive Chairman. In connection with this change, the Board elected Mr. Pavlovsky as Chief Executive Officer and Mr. Oringer as Executive Chairman, effective April 1, 2020. As a result of Mr. Oringer’s status as Founder and his role and responsibilities as Executive Chairman, Mr. Oringer is not considered to be an independent Chairman. Since October 2014, the Board has appointed Mr. Evans as our “Presiding Director” to preside over non-management and executive sessions of the Board.
Executive Chairman Roles and Responsibilities

In his role as Executive Chairman, Mr. Oringer focuses on the leadership of the Board, including ensuring that Board functions are effectively carried out and, where functions have been delegated to Committees of the Board, that the results are reported to the Board; ensuring that the interests of various stakeholders are considered by the Board; engaging with our Presiding Director to facilitate communication between management and the independent directors; providing input on the performance of the Chief Executive Officer and acting as primary spokesman for the Board.
Mr. Oringer also meets regularly with Mr. Pavlovsky, our Chief Executive Officer, to advise and counsel across a wide range of issues; participates in discussions on the Company’s long-term growth, including discussions on strategic planning and capital allocation; is available to the executive leadership team and other management to provide feedback and advise, where needed; and works with Mr. Pavlovsky and management to drive key business relationships and growth.
Board Role in Risk Oversight
Effective risk management is critical to our Company’s ability to achieve its strategy. The Board oversees management in exercising its responsibility for managing risk, considering our robust framework of policies, procedures, and processes to anticipate, identify, assess, prioritize, and mitigate risks across the Company. Responsibility for managing risk rests with executive management while the Board and its committees participate in oversight of the process. Specifically, the Board has responsibility for overseeing the strategic planning process, reviewing and monitoring management’s execution of the Company’s strategic and business plans, and selected
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risk areas. Each Board committee is responsible for oversight of specific risk areas relevant to their respective committee charter.
The oversight responsibility of the Board and its committees is informed by reports from our management team and our internal audit function that are designed to provide visibility to the Board about the identification and assessment of key risks and our risk mitigation strategies. Specifically, the Company has robust internal processes and an internal control environment that facilitate the identification and management of risks and regular communication with the Board and its committees. These include an enterprise risk management assessment, regular internal management Disclosure Committee meetings, a Code of Business Conduct and Ethics and a comprehensive internal and external audit process. The Board executes its oversight responsibility directly and through its committees, which regularly report back to the Board. Some examples of risks overseen by committees are:
The Audit Committee oversees the enterprise risk process that management implements, and reviews and assesses the Company’s processes to manage financial reporting risk and to manage internal audit, internal control over financial reporting and disclosure controls and procedures, tax, investment, and other financial risks, as well as the Company’s financial position and financial activities. The Board has also delegated oversight of information technology and cybersecurity risks to the Audit Committee.
The Compensation Committee oversees compensation programs, policies and practices and their effect on risk-taking by management.
The Nominating and Corporate Governance Committee manages risk by overseeing the governance framework and structure as well as other corporate governance matters, including oversight of the annual board and committee assessment process, and is charged with developing and recommending to the Board corporate governance principles and policies and Board committee structure, leadership and membership.
Each committee reports regularly to the Board with respect to such committee’s particular risk oversight responsibilities.
Highlight on the Board Role’s in Oversight of Human Capital Management

The Board has long recognized that our employees are some of our most important assets and is engaged with management on ensuring that our Company is an employer of choice for the most talented employees in our industry. While the full Board discusses human capital management with regards to its role in overseeing our overall long-term strategy, our Compensation Committee has responsibility for overseeing human capital management. The Compensation Committee is tasked with overseeing specific initiatives on a regular basis, including, among other tasks:
Monitoring employee turnover;
Overseeing compensation philosophies and incentive plans across our workforce;
Monitoring our workforce planning, including in response to the COVID-19 pandemic;
Understanding our workforce demographics and diversity, equity and inclusion strategies and initiatives; and
Monitoring our corporate culture.
Highlight on the Board Role’s in Oversight of Cybersecurity and Data Privacy

The Board and the Audit Committee are each involved in oversight of the Company’s management of cybersecurity risk. Cybersecurity is vital to protecting proprietary and confidential information and the trust of our customers, contributors and employees. To more effectively prevent, detect and respond to information security threats, the Company has a dedicated Chief Information Security Officer whose team is responsible for leading enterprise-wide information security strategy, policy, standards, architecture and processes. The Audit Committee receives regular reports from the then-current Chief Information Security Officer and Chief Technology Officer, as applicable, on, among other things, the Company’s cyber risks and threats, the status of projects to strengthen the Company’s information security systems, assessments of the Company’s security program and the emerging threat landscape.
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The Audit Committee regularly briefs the full Board on these matters. The Board and its committees also discuss recent incidents throughout the industry and the emerging threat landscape.
Stockholder Communication with the Board
Stockholders and other interested parties may communicate directly with the Board, with any director, including our Presiding Director, or with the independent directors as a group or any other group of directors by writing to our Corporate Secretary at Shutterstock, Inc., Attn: Corporate Secretary, 350 Fifth Avenue, 21st Floor, New York, New York 10118, with a request to forward such communication to the intended recipient or recipients. Messages received with such a request will be forwarded to the appropriate director or directors. If the communication is addressed to the Presiding Director, the communication will be forwarded directly to the Presiding Director and will not be processed by the Corporate Secretary. If no particular director is named, letters will be forwarded, depending upon the subject matter, to the Chair of the Audit, Compensation, or Nominating and Corporate Governance Committee, as the Corporate Secretary deems appropriate or necessary.
Board Meetings
During 2020, the Board held five meetings and additionally took action on two occasions by unanimous written consent. Each of our directors attended, in person or by telephone, at least 75% of the total number of meetings of both the Board of Directors and Board committees on which such director served during the period. Under our Corporate Governance Guidelines, each of our directors is strongly encouraged to make every effort to attend our annual meetings. All directors serving at the time of the 2020 Annual Meeting of Stockholders attended the meeting.
Executive Sessions
Executive sessions of our independent directors are generally held in connection with regularly scheduled Board meetings and are chaired by our Presiding Director. Our standing committees also generally meet in executive sessions at the end of each committee meeting.
Board Committees
In 2020, our Board had three standing committees: an Audit Committee, a Compensation Committee, and a Nominating and Corporate Governance Committee. Each of these committees operates under a written charter approved by the Board, copies of which are available on our website at investor.shutterstock.com. These committees currently comprise the following independent members:
Name
Audit
Committee
Compensation
Committee
Nominating and
Corporate
Governance
Committee
Rachna Bhasin ü ü
Deirdre Bigley
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ü
Jeff Epstein ü ü
Thomas R. Evans ü ü
UNTITLEDCOPYA033A.JPG
Paul J. Hennessy ü ü
Alfonse Upshaw
UNTITLEDCOPYA033A.JPG
UNTITLEDCOPYA033A.JPG Committee Chairperson

Each of our standing committees has a written charter approved by the Board that establishes the committee’s roles and responsibilities. Copies of the charters for the Audit Committee, the Compensation Committee, and the Nominating and Corporate Governance Committee can be found on our Investor Relations website at investor.shutterstock.com under the link for “Corporate Governance.” Please note that information on, or that can be accessed through, our website is not part of the proxy soliciting materials, is not deemed “filed” with the SEC and is not to be incorporated by reference into any of our filings under the Securities Act of 1933, as amended (the
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“Securities Act”), or the Exchange Act, and, except for information filed by the Company under the cover of Schedule 14A, is not deemed to be proxy soliciting materials.
Audit Committee
The primary purpose of our Audit Committee is to assist the Board in its oversight of our corporate accounting and financial reporting process and internal controls over financial reporting. As more fully described in its charter, the Audit Committee’s responsibilities include:
appointing, approving the compensation of, and assessing the independence of our independent registered public accounting firm;
overseeing the work of our independent registered public accounting firm, including through the receipt and consideration of reports from such firm;
reviewing and discussing with management and our independent registered public accounting firm our annual and quarterly financial statements and related disclosures;
coordinating the Board’s oversight of our internal control over financial reporting, disclosure controls and procedures, and code of business conduct and ethics;
overseeing our internal audit function;
discussing our risk management policies;
establishing procedures for the receipt and retention of accounting-related complaints and concerns;
meeting independently with our senior internal audit executive, our independent registered public accounting firm, and management;
reviewing and approving or ratifying any related person transactions; and
preparing the audit committee report required by SEC rules.
Our Audit Committee currently consists of Mr. Upshaw, who serves as its chairman, Mr. Epstein, Mr. Evans and Mr. Hennessy. The Audit Committee met eight times during 2020 and additionally took action on one occasion by unanimous written consent. The Board, in its business judgment, has determined that each director serving on the Audit Committee meets the independence criteria prescribed by the Exchange Act and SEC rules and regulations and meets the NYSE’s financial literacy requirements for audit committee members. The Board has also determined that Mr. Upshaw qualifies as an audit committee financial expert within the meaning of SEC rules.
Compensation Committee
The primary purpose of our Compensation Committee is to assist the Board in overseeing our compensation program. As more fully described in its charter, the Compensation Committee’s responsibilities include:
reviewing and approving our general compensation strategy;
establishing annual and long-term performance goals for our Chief Executive Officer, and evaluating the performance of our Chief Executive Officer in light of those goals and objectives and determining and approving or recommending for approval the compensation of our Chief Executive Officer based on such evaluations;
reviewing and approving, in consultation with our Chief Executive Officer, the compensation of our executive officers;
administering our stock plans and any equity compensation arrangements that may be adopted by us from time to time;
reviewing compensation levels for directors for service on our Board and its committees and recommendation changes in such compensation; and
reviewing and discussing with management the annual Compensation Discussion and Analysis (“CD&A”)
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disclosure and related tabular presentations for our named executive officers and, based on this review and discussions, making a recommendation to include the CD&A disclosure in the Company’s annual public filings.
The engagement of any compensation consultants, legal counsel or other advisors rests exclusively with our Compensation Committee, which has sole authority to retain and terminate any compensation consultant, counsel or other advisor that it uses.
Our Compensation Committee currently consists of Ms. Bigley, who serves as its chairperson, Ms. Bhasin, Mr. Evans and Mr. Hennessy. The Compensation Committee met seven times during 2020 and additionally took action on five occasions by unanimous written consent. The Board, in its business judgment, has determined that each director serving on the Compensation Committee meets the independence requirements prescribed by the NYSE and is a “non-employee director” for purposes of the Exchange Act and an “outside director” for purposes of Section 162(m) of the Internal Revenue Code.
Nominating and Corporate Governance Committee
The primary purposes of our Nominating and Corporate Governance Committee are to assist our Board in identifying individuals qualified to become members of our Board, to oversee the evaluation of our Board and management and to review and update our corporate governance principles. As more fully described in its charter, the Nominating and Corporate Governance Committee’s responsibilities include:
developing and recommending a set of corporate governance principles to our Board;
evaluating the composition, size, organization and governance of our Board and its committees;
reviewing and recommending to our Board director independence determinations with respect to continuing and prospective directors;
identifying, evaluating and recommending candidates for election to our Board in the class subject to election; including nominees recommended by our stockholders; and
overseeing our Board and Board committee’s performance and self-evaluation process.
Our Nominating and Corporate Governance Committee currently consists of Mr. Evans, who serves as its chairperson, Ms. Bhasin, Ms. Bigley and Mr. Epstein. The Nominating and Corporate Governance Committee met two times during 2020 and additionally took action on two occasions by unanimous written consent. The Board, in its business judgment, has determined that each director serving on the Nominating and Corporate Governance Committee meets the independence requirements prescribed by the NYSE.
Compensation Committee Interlocks and Insider Participation
The members of our Compensation Committee during 2020 were as follows: Deirdre Bigley, Rachna Bhasin, Thomas R. Evans and Paul J. Hennessy. Each of the members of our Compensation Committee during 2020 is or was a non-employee director and was never an officer or employee of the Company or any of its subsidiaries. None of our executive officers currently serves, or in the past has served, as a member of the board of directors or compensation committee of any entity that has one or more executive officers serving on our Board or on our Compensation Committee.


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PROPOSAL ONE: ELECTION OF DIRECTORS

The Board is divided into three classes. Directors are elected by class, for three-year terms. The Nominating and Corporate Governance Committee recommended, and the Board has nominated the two Class III directors, Thomas R. Evans and Paul J. Hennessy, as nominees for election as members of our Board at the 2021 Annual Meeting.
Mr. Evans and Mr. Hennessy have each agreed to serve as a director of the Company if elected. The term of office of a director elected at this 2021 Annual Meeting will continue until the Annual Meeting of Stockholders held in 2024 or until such director’s successor has been duly elected and qualified, or until such director’s earlier resignation or removal.
Unless otherwise instructed, the persons appointed in the accompanying form of proxy will vote the proxies received by them for these nominees, who are all presently directors of the Company. In the event that any nominee becomes unavailable or unwilling to serve as a member of our Board, the proxy holders will vote in their discretion for a substitute nominee, or if a substitute nominee cannot be identified, the Board may reduce the size of the Board.
The table below summarizes the key qualifications, skills or attributes of each director nominee standing for election at the 2021 Annual Meeting, which we believe qualify the director to serve on our Board. For additional information regarding our Board members, including our director nominees standing for election at the 2021 Annual Meeting, please refer to the biographies set forth under “Directors and Executive Officers” on page 9.
Director Qualifications
Thomas R. Evans Breadth of business experience, particularly as a senior executive in internet and media industries, and service on the board of directors of public companies; valuable insight into operational strategy and execution.
Paul J. Hennessy Extensive global marketing and management experience as well as domestic and international start-up experience, particularly as a senior executive with online marketing experience in the internet and travel industries.

A plurality of the votes cast in the election of directors is required to elect a nominee to our Board. The Board has adopted a director resignation policy, pursuant to which any nominee for director who, in an uncontested election, has more votes “WITHHELD” than “FOR” his or her election is expected to promptly tender his or her resignation for consideration by the Nominating and Corporate Governance Committee and subsequently by the Board. Our director resignation policy is incorporated into our Corporate Governance Guidelines, a copy of which can be found through the “Corporate Governance” link on our Investor Relations page at investor.shutterstock.com.
OUR BOARD UNANIMOUSLY RECOMMENDS A VOTE “FOR” THE ELECTION OF EACH NOMINEE FOR DIRECTOR NAMED ABOVE.
The key qualifications, skills or attributes of the members of the Board whose terms or directorships do not expire at the 2021 Annual Meeting are set forth below.
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Director Qualifications
Deirdre Bigley
(term expiring at 2023 Annual Meeting)
Extensive experience working at multinational corporations with teams across a range of products and significant business and operational experience, particularly as a senior marketing executive at media and technology companies.
Jeff Epstein(1)
Extensive financial and business expertise, including background as chief financial officer of the world’s largest enterprise software company, and service as a senior executive at companies in the internet and advertising industries.
Alfonse Upshaw
(term expiring at 2023 Annual Meeting)
Extensive accounting, finance and corporate governance experience, including holding roles as chief accounting officer and regional chief financial officer of the largest integrated healthcare company in the United States, as well as qualification to serve as a financial expert.
Jonathan Oringer
(term expiring at 2022 Annual Meeting)
Extensive experience in the commercial digital imagery industry, experience with entrepreneurial and technology companies and extensive knowledge of the Company as its founder.
Stan Pavlovsky
(term expiring at 2022 Annual Meeting)
Track record of growing and leading eCommerce, retail and digital media businesses. Strategic and operational insight of the Company and unique management and industry insights.
Rachna Bhasin
(term expiring at 2022 Annual Meeting)
Extensive senior leadership experience in the technology and media industries, specifically driving corporate and business development initiatives and significant technical expertise and experience in innovation. Valuable insight into evaluation and execution of strategic, business and operational initiatives.
(1) Mr. Epstein has advised the Company that he will step down from the Board effective June 4, 2021.
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DIRECTOR COMPENSATION
The Compensation Committee reviews director compensation periodically and recommends changes to the Board, when it deems appropriate, taking into account various factors, including the responsibilities of directors generally and the responsibilities of committee chairs, and the Company’s performance, and based on market information provided by Aon Hewitt, an independent compensation consulting firm. The Board reviews the recommendations of the Compensation Committee and determines the form and amount of director compensation. Directors who also serve as employees of the Company do not receive payment for services as a director.
Non-Employee Director Compensation Policy
In December 2018, our Compensation Committee recommended, and our Board approved, a revised non-employee director compensation policy, or the director compensation policy, which establishes compensation to be paid to our non-employee directors as an inducement to obtain and retain the services of qualified persons to serve as members of our Board. The revised director compensation policy became effective on January 1, 2019.
The goal of the director compensation policy is to provide compensation for our non-employee directors in a manner that enables us to attract and retain outstanding director candidates and reflects the substantial time commitment necessary to oversee the Company’s affairs. The director compensation policy is also intended to align the interests of our directors and our stockholders, and we have chosen to do so by compensating our non-employee directors with a mix of cash and equity-based compensation.
Under the director compensation policy, each of our non-employee directors receives an annual fee of $50,000. In addition, the chairperson and members of our Audit, Compensation, and Nominating and Corporate Governance Committees are entitled to receive annual retainer fees payable quarterly in arrears (and prorated in the event of service less than an entire quarter) as follows:
Role
Annual Fees-
Chairperson ($)
Annual Fees-
Other Members ($)
Audit Committee 20,000 10,000
Compensation Committee 10,000  5,000
Nominating and Corporate Governance Committee —  2,500
In addition to the annual cash retainer, the independent director who serves as the Lead Independent Director or Presiding Director, as applicable, shall be entitled to an additional annual cash retainer in the amount of $10,000.
We also reimburse our non-employee directors for reasonable travel expenses and other out-of-pocket costs incurred in connection with attending Board and committee meetings.
Pursuant to our director compensation policy, each non-employee director receives a restricted stock unit (“RSU”) award with a cash value equal to $150,000 upon election and annually thereafter, with the grant date of such annual award to be the date of our annual meeting of stockholders. These RSUs vest on the earlier of (i) the one-year anniversary of the date of grant and (ii) the date immediately preceding the date of our annual meeting of stockholders for the year following the year of grant for the award, subject in each case to the non-employee director’s continued service to the Company through the vesting date. If a non-employee director is appointed to the Board at any point other than at the annual meeting of stockholders, the initial director grant is prorated.
The number of RSUs subject to the grant is determined by dividing the cash value of the award by the average of our closing price for a share of our Common Stock during the 30 trading-day period ending on the date immediately prior to the grant date, rounded down to the nearest whole number of shares. These RSU grants are issued pursuant to and are subject to the terms and conditions of our Amended and Restated 2012 Omnibus Equity Incentive Plan (the “Amended and Restated 2012 Plan”) and the terms of the RSU agreements entered into between each non-employee director and the Company. Furthermore, the vesting for any equity awards to our non-employee directors terminate, and all such awards become fully vested, upon a change in control of the Company.
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The Company also provides our non-employee directors the option to elect to defer the settlement of the vested shares subject to their RSU grants to be issued on the earliest of a fixed date in the future or the date of the non-employee director’s separation from service, and the date of a change in control of the Company.
Our Amended and Restated 2012 Plan limits the maximum aggregate value of awards granted under the Amended and Restated 2012 Plan (based on their grant date fair value for financial reporting purposes) and cash payable to any individual non-employee director in any fiscal year to $750,000, subject to extraordinary circumstances, at the recommendation of the Board. The Board believes this is a meaningful limit on total director compensation and as set forth in our Director Compensation Table below and described above, the actual amounts paid to our non-employee directors are lower than the limit.
Director Compensation Table
The following table provides information on the amount of compensation received by our non-employee directors for the year ended December 31, 2020. Information regarding the compensation of Mr. Oringer and Mr. Pavlovsky is set forth in the Summary Compensation Table included elsewhere in this proxy statement.
Name
Fees Earned
or Paid in
Cash ($)(1)
Stock
Awards ($)(2)
Total ($)
Deirdre Bigley(3)
62,500 155,372 217,872
Jeff Epstein(4)
67,292 155,372 222,664
Thomas R. Evans(5)
77,500 155,372 232,872
Paul J. Hennessy(6)
65,000 155,372 220,372
Rachna Bhasin(7)(8)
55,000 155,372 210,372
Alfonse Upshaw(9)
5,833 91,423 97,256
(1)    Represents all fees earned or paid in cash for services as a director, including annual retainer fees, committee chair and membership fees, as applicable.
(2)    Amounts represent the aggregate grant date fair value of stock awards computed in accordance with Financial Accounting Board Accounting Standards Codification Topic 718, “Compensation — Stock Compensation.” Stock awards reflect a grant of RSUs with a value of approximately $150,000 on the date of the 2020 Annual Meeting of Stockholders, with the number of shares determined by dividing $150,000 by the average of our closing price for a share of our Common Stock during the 30 trading-day period ending on the date immediately prior to the grant date, rounded down to the nearest whole number of shares. Grant date fair value other than for Mr. Upshaw was calculated using the closing price on the grant date of $38.25 per share, which was the closing price of our Common Stock on June 5, 2020. The grant date fair value for Mr. Upshaw was calculated using the closing price on the grant date of $71.48 per share, which was the closing price of our Common Stock on December 7, 2020.
(3)    As of December 31, 2020, Ms. Bigley had 4,062 RSUs outstanding.
(4)    As of December 31, 2020, Mr. Epstein had 4,062 RSUs outstanding.
(5)    As of December 31, 2020, Mr. Evans had 4,062 RSUs outstanding.
(6)    As of December 31, 2020, Mr. Hennessy had 4,062 RSUs outstanding.
(7)    As of December 31, 2020, Ms. Bhasin had 4,062 RSUs outstanding.
(8)    Fees are paid to EQ Partners, LLC.
(9)    As of December 31, 2020, Mr. Upshaw had 1,279 RSUs outstanding.


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SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The following table sets forth information, as of April 14, 2021 or as of the dates referenced below, regarding the beneficial ownership of our Common Stock by:

each person known to us to own beneficially more than 5% of the outstanding shares of any class of our voting securities;
each of our directors;
each of our named executive officers; and
all of our directors and current executive officers as a group.
We computed the number of shares beneficially owned and the percentage of Common Stock represented by that ownership based on the SEC’s rules. Accordingly, ownership reflects shares over which a person has voting or investment power and includes shares that a person has the right to acquire by June 13, 2021 in connection with stock options or vesting of RSUs (not taking into account the withholding of shares of Common Stock to cover applicable taxes). Unless otherwise noted below, the address of each beneficial owner listed in the table below is c/o Shutterstock, Inc., 350 Fifth Avenue, 21st Floor, New York, New York 10118. We have determined beneficial ownership in accordance with the rules of the SEC. Except as indicated by the footnotes below, we believe, based on information furnished to us, that the persons and entities named in the table below have sole voting and investment power with respect to all shares of Common Stock that they beneficially own.

  Shares Beneficially Owned
Name of Beneficial Owner Number Percentage
Named Executive Officers and Directors:
Jonathan Oringer(1)
13,603,542 36.9%
Stan Pavlovsky(2)
62,619 *
Jarrod Yahes *
Steven Ciardiello(3)
13,568 *
Peter Silvio(4)
7,992 *
Abraham Muchnick(5)
Deirdre Bigley(6)
9,266 *
Rachna Bhasin(7)
7,601 *
Jeff Epstein(8)
49,989 *
Thomas R. Evans(9)
26,360 *
Paul J. Hennessy(10)
21,134 *
Alfonse Upshaw(11)
1,279 *
All executive officers and directors as a group (12 persons)(12)
37.4%
Other 5% Stockholders:    
Blackrock, Inc.(13)
3,347,128 9.2%
ArrowMark Colorado Holdings LLC(14)
1,909,688 5.2%
The Vanguard Group(15)
2,525,196 6.9%
_______________________________________________________________________________
*     Represents beneficial ownership of less than 1%.
(1)Consists of 13,339,800 shares of Common Stock and 263,742 shares issuable upon exercise of outstanding options exercisable at or within 60 days of April 14, 2021.
(2)Consists of 41,844 of Common Stock and 20,775 shares issuable upon exercise of outstanding options exercisable at or within 60 days of April 14, 2021.
(3)Consists of 13,568 of Common Stock
(4)Consists of 7,992 of Common Stock.
(5)Mr. Muchnick separated from the Company effective January 11, 2021 and, pursuant to a severance and general release, forfeited all unvested outstanding equity awards.
(6)Consists of 5,204 of Common Stock and 4,062 shares issuable upon the vesting of RSUs at or within 60 days of April 14, 2021.
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(7)Consists of 7,601 RSUs that are vested at, or will vest within, 60 days of April 14, 2021,will vest at or within 60 days of April 14, 2021 but will not settle until the earlier of Ms. Bhasin’s separation of service from the Company or the date of a change of control in the Company.
(8)Consists of 9,528 of Common Stock, 19,362 RSUs that are vested at, or will vest within, 60 days of April 14, 2021, but will not settle until the earlier of Mr. Epstein’s separation of service from the Company or the date of a change of control in the Company, and 21,099 shares issuable upon exercise of outstanding options exercisable at or within 60 days of April 14, 2021.
(9)Consists of 6,998 of Common Stock and 19,362 RSUs that are vested at, or will vest within, 60 days of April 14, 2021, but will not settle until the earlier of Mr. Evan’s separation of service from the Company or the date of a change in control of the Company.
(10)Consists of 6,989 of Common Stock, 14,145 RSUs that are vested at, or will vest within, 60 days of April 14, 2021 but will not settle until the earlier of Mr. Hennessy’’s separation of service from the Company or the date of a change in control of the Company.
(11)Consists of 1,279 RSUs that will vest at or within 60 days of April 14, 2021 but will not settle until the earlier of Mr. Upshaw’s separation of service from the Company or the date of a change of control in the Company.
(12)Includes 305,616 shares issuable upon exercise of outstanding options exercisable at or within 60 days of April 14, 2021.
(13)This information is based solely on a Schedule 13G/A filed by Blackrock, Inc. (“Blackrock”) with the SEC on February 1, 2021, which reported ownership as of December 31, 2020. Of the 3,347,128 shares of our Common Stock deemed beneficially owned, Blackrock reported sole voting power as to 3,319,466 shares and sole dispositive power as to all shares beneficially owned. The address of Blackrock is 55 East 52nd Street New York, NY 10055.
(14)This information is based solely on a Schedule 13G/A filed by ArrowMark Colorado Holdings LLC (“ArrowMark”) with the SEC on February 16, 2021, which reported ownership as of December 31, 2020. Of the 1,909,688 shares of our Common Stock deemed beneficially owned, ArrowMark reported that it had sole voting and dispositive power over all shares beneficially owned. The address of ArrowMark is 100 Fillmore Street, Suite 325, Denver, Colorado 80206.
(15)This information is based solely on a Schedule 13G/A filed by The Vanguard Group (“Vanguard”) with the SEC on February 10, 2021, which reported ownership as of December 31, 2020. Of the 2,525,196 shares of our Common Stock deemed beneficially owned, Vanguard reported sole voting power as to 0 shares, shared voting power as to 57,174 shares, sole dispositive power as 2,452,973 shares and shared dispositive power as to 72,223 shares. The address of Vanguard is 100 Vanguard Blvd., Malvern, Pennsylvania 19355.
Section 16(a) Beneficial Ownership Reporting Compliance
Under U.S. securities laws, directors, certain executive officers and persons holding more than 10% of our Common Stock must report their initial ownership of our Common Stock and any changes in that ownership to the SEC. The SEC has designated specific due dates for these reports and we must identify in this proxy statement those persons who did not file these reports when due. We believe that during 2020, our directors, executive officers and 10% stockholders complied with the Section 16(a) filing requirements. In making these statements, we have relied upon the examination of copies of Forms 3, 4 and 5, and amendments to these forms, provided to us and the written representations of our directors, executive officers and 10% stockholders.

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PROPOSAL TWO:
ADVISORY VOTE TO APPROVE THE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS
As required pursuant to Section 14A of the Exchange Act, the Board is asking you to approve, on an advisory basis, the executive compensation programs and policies and the resulting compensation of the named executive officers (“NEOs”) listed in the 2020 Summary Compensation Table as described in this proxy statement.
Because the vote is advisory, the result will not be binding on the Compensation Committee or the Company and it will not affect, limit or augment any existing compensation or awards. The Compensation Committee will, however, take into account the outcome of the vote when considering future compensation arrangements.
The affirmative “FOR” vote of a majority of the shares present and entitled to vote at the 2021 Annual Meeting, either represented by proxy or by attending the meeting, is required to approve, on an advisory basis, the compensation of our NEOs.
We believe you should read the Compensation Discussion and Analysis, compensation tables and accompanying narrative information and also consider the factors below in determining whether to approve this proposal.
Key Features of our Executive Compensation Program
The discretionary structure of our compensation program allows our Board and our Compensation Committee to determine pay based on a comprehensive view of the quantitative and qualitative factors they believe best reflect the results that will produce long-term business success. The Board and the Compensation Committee maintains a strong correlation between our financial results and Company objectives and NEO compensation actually awarded.
We designed our compensation programs for NEOs to attract, motivate and retain the key executives who drive our success. Pay that reflects performance and alignment of that pay with the interests of our stockholders are the key principles that underlie our compensation program and decisions. In that regard, we:
weight compensation towards driving achievement of our long-term strategic and financial objectives and aligning our executive officers’ interest with the long-term interests of our stockholders by providing meaningful variable and equity-based compensation, including performance-based equity compensation;
pay base salaries to our senior executives that are competitive based on our review of market data;
consider peer group competitive pay and practices and comparative data derived from market research in establishing compensation;
strive to enhance retention by conditioning a significant percentage of total compensation on multi-year vesting and performance-based vesting; and
do not include excise tax gross-ups in change in control termination benefits.
Although the vote in this Proposal 2 is non-binding, the Board and the Compensation Committee value the opinions of the stockholders and will review the voting results and consider the outcome of the say-on-pay vote and stockholder concerns, along with other relevant factors, when making future compensation design decisions.
In accordance with the wishes of our stockholders based on a vote in 2015 regarding the frequency of say-on-pay proposals, we currently hold our say-on-pay vote every year. Accordingly, we are asking our stockholders to indicate their support for our named executive officer compensation as described in this proxy statement by voting “FOR” the following resolution at the 2021 Annual Meeting:
“RESOLVED, that the compensation paid to the Company’s named executive officers as disclosed pursuant to Item 402 of Regulation S-K in this proxy statement, including in the “Compensation Discussion and Analysis,” the compensation tables and the narrative discussion, is hereby approved.”
THE BOARD UNANIMOUSLY RECOMMENDS A VOTE “FOR” THIS RESOLUTION.
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EXECUTIVE COMPENSATION
Compensation Discussion and Analysis
This Compensation Discussion and Analysis describes our executive compensation program and the decisions made in 2020 as they pertain to each individual who served as our Chief Executive Officer (CEO), our Chief Financial Officer (CFO), and our other executive officers as of the end of our fiscal year ended December 31, 2020, as well as certain former executive officers who served in their role in 2020. Throughout this document, these executives are collectively referred to as our “NEOs” or our “named executive officers.” During fiscal year 2020, our named executive officers were:
Jonathan Oringer(1)
Founder, Executive Chairman of the Board
Stan Pavlovsky(1)
Chief Executive Officer
Jarrod Yahes Chief Financial Officer
Steven Ciardiello(2)
Chief Accounting Officer
Peter Silvio Chief Technology Officer
Abraham Muchnick(3)
Former Chief Product Officer
(1) Effective April 1, 2020, Mr. Oringer stepped down as Chief Executive Officer and assumed the role of Executive Chairman and Mr. Pavlovsky was appointed as our Chief Executive Officer.
(2) In 2021 the Board determined that Mr. Ciardiello’s role is not considered an executive officer position. Mr. Ciardiello remains a Section 16 officer.
(3) Mr. Muchnick departed the Company effective January 11, 2021.

This Compensation Discussion and Analysis is organized into four sections:
Section 1 - Executive Summary
Section 2 - Establishing and Evaluating Executive Compensation
Section 3 - Elements of 2020 Compensation
Section 4 - Other Compensation Information
Section 1 - Executive Summary
We are a leading global technology company offering a creative platform for high-quality content, tools and services to businesses, marketing agencies and media organizations around the world.
Our long-term success depends, in part, on our ability to attract, engage, motivate and retain highly talented individuals who are committed to our vision, strategy and values. One of the key objectives of our executive compensation program is to maintain a strong alignment between corporate performance and executive compensation by tying incentive compensation to the achievement of performance metrics that we believe increase the Company’s long-term value and align our executives’ interests with the interests of our stockholders.
COVID-19 Pandemic and Impact on Employee Compensation
In response to the uncertainty around the potential impact of the COVID-19 pandemic, Mr. Pavlovsky elected to defer the effectiveness of a salary increase in connection with his appointment to Chief Executive Officer for six months. As more fully described below, in light of the COVID-19 pandemic, determination of the performance measures for a portion of the long-term equity grants awarded in April 2020 was completed later than usual and targets for the annual cash bonus plan, which were originally set in January 2020, were reviewed and updated in July 2020, in each case to take into account the Company’s revised business strategy.
2020 Business Highlights(1)
Fiscal 2020 was a year of unprecedented business circumstances that presented both challenges as well as opportunities for us. During fiscal 2020, we continued to grow and make strategic investments while navigating our business through the COVID-19 pandemic. Despite the COVID-19 pandemic, we completed a successful fiscal
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2020 where we grew net revenue and active subscribers, grew our capabilities through strategic asset acquisitions and made further investments in talent and technology infrastructure.
Over 2.0 million active, paying customers contributed to our revenue in 2020. As of the end of fiscal 2020, more than 1.6 million approved contributors made their images, footage and music tracks available in our collection, which has grown to more than 360 million images and more than 21 million footage clips as of December 31, 2020. This makes our collection of content one of the largest of its kind, and we delivered 180.0 million paid downloads to our customers across all of our brands during fiscal 2020. The majority of our content licenses and 62% of our revenue came from our E-commerce sales channel in fiscal 2020.
Over the course of fiscal 2020, we invested aggressively in product development and cloud-based hosting infrastructure to support the quality of the user experience we provide on our websites, especially the efficiency and speed with which our search interfaces and algorithms help customers find and download the content that they need, the degree to which our websites have been localized for our global user base, the degree to which we make use of the large quantity of data we collect about image, footage and music and search patterns, and the security of user information on our platform. We intend to continue to invest in these areas, to the extent that we can improve the customer experience and increase the efficiency with which we deploy new products and features.
The highlights of our 2020 performance amidst the pandemic include:

Revenue increased 2% to $666.7 million(2)
Income from operations increased by $65.1 million to $85.3 million
Net income increased 257% to $71.8 million
Adjusted EBITDA increased 61% to $154.9 million
Operating cash flows increased by 61% to $165.1 million
Free cash flow increased by 97% to $144.2 million.
________________________
(1)    For additional information regarding our financial results, please see our 2020 Annual Report, including “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.” For a description of our key metrics, including number of subscribers, subscriber revenue, average revenue per customer, paid downloads, revenue per download and images in our collection, see “Key Operating Metrics” within “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2020 Annual Report together with the discussion regarding, and reconciliation of, our non-GAAP to GAAP financial measures.
(2)    Foreign currency fluctuations did not have a significant impact on full year 2020 revenue.
Compensation Governance Highlights
We maintain the following corporate governance practices and policies that our Board believes help to advance our compensation goals, including:
What we do What we don’t do
ü Maintain a completely independent Compensation Committee that establishes our compensation practices û Encourage unreasonable risk taking
ü Design executive compensation program to align pay with performance, including certain long-term equity awards with vesting tied to performance achievement û No excessive change in control or severance payments
ü Award a vast majority of pay as variable and not fixed compensation û No repricing underwater stock options or grants without seeking stockholder approval
ü Employ our executive officers “at will” û No excise tax gross-ups upon change in control termination benefits
ü Provide for “double-trigger” equity acceleration for our executive officers upon change in control û No defined benefit retirement plans, or non-qualified deferred compensation plans for our executive officers
ü Maintain a clawback policy û No hedging or pledging of our equity securities by directors or employees, including our executive officers
Section 2 - Establishing and Evaluating Executive Compensation
Executive Compensation Philosophy & Objectives
Our philosophy with regard to the compensation of our named executive officers, is to attract and retain high performers, and motivate them to pursue our corporate and business objectives that are intended to create long-
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term value for our stockholders. We strive to provide compensation packages that are competitive, reward achievement of our business objectives, and align executive and stockholder interests through equity ownership.
Our executive compensation program is designed to:
attract, motivate and retain high-performing executives;
provide compensation that is competitive with the market and tailored to account for the specific needs and responsibilities of the particular position, as well as the performance and unique qualifications of the individual executive;
ensure actual payouts are aligned with financial performance and strategic business goals that enhance stockholder value;
ensure a substantial portion of each executive’s total compensation is “at-risk” and varies based on Company and individual performance; and
align the executive compensation program with both short-term and long-term stockholder interests.
As our needs evolve, we will reevaluate our philosophy and compensation programs from time to time as circumstances require.
Advisory Vote on Executive Compensation

Since 2015, we have conducted an annual advisory vote to approve the compensation of our named executive officers. While this vote is not binding on us, the Board, or the Compensation Committee, we believe that it is important for our stockholders to have an opportunity to vote on this proposal on an annual basis as a means to express their views regarding our executive compensation philosophy, our compensation policies and programs, and our decisions regarding executive compensation, all as disclosed in this proxy statement. To the extent there is any significant vote against the compensation of our named executive officers, we will consider our stockholders’ concerns and the Compensation Committee will evaluate what actions may be necessary to address those concerns.
At our 2020 Annual Meeting, approximately 98.6% of the votes cast by stockholders on the advisory vote on executive compensation were in favor of the compensation of our named executive officers. The Board and Compensation Committee reviewed these final vote results and determined that, given the significant level of support of our approach to compensation by our stockholders, stockholders were not demanding significant changes to our executive compensation policies. However, we regularly review our executive compensation to ensure compliance with our pay-for-performance philosophy and when evaluating the other factors and data discussed in this Compensation Discussion and Analysis, the Board and the Compensation Committee determined to update our 2020 compensation programs and policies to further align executive compensation with our performance by continuing to grant performance-based restricted stock units (“PSUs”) to our named executive officers.

Setting our Compensation
Our Compensation Committee is responsible for overseeing all aspects of our executive compensation programs, including executive salaries, payouts under our Short-Term Incentive Plan, the size and structure of equity awards and any severance or change in control benefits. In carrying out its responsibilities, the Compensation Committee reviews, evaluates and approves the compensation arrangements, plans, policies, and practices for our executive officers. When discharging its responsibilities, the Compensation Committee relies on input from our management and our independent compensation consultant, whose roles are discussed below. Mr. Oringer, our Executive Chairman, also assists the Compensation Committee in determining Mr. Pavlovsky's compensation. Our management provides our Compensation Committee with its perspectives on certain aspects of our NEOs' compensation, including the metrics and targets used in our performance-based compensation elements and the companies that constitute our compensation peers. Additionally, for each NEO except for himself, Mr. Pavlovsky provides his review of the NEO's individual performance to the committee and recommends an amount of compensation for the NEO, informed by that NEO's individual performance and data regarding market levels of
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compensation for that NEO's role and scope of responsibility. Mr. Pavlovsky does not participate in the Compensation Committee's deliberations on his own compensation.
Potential adjustments to our executive officers’ compensation (including salary and annual incentive opportunities) are considered by the Compensation Committee annually and upon significant role changes. Any adjustments are typically set at a Compensation Committee meeting early in the calendar year after the Board has reviewed the Company’s performance for the past year and prospects for the year ahead, although individual executive performance is evaluated on an ongoing basis and, accordingly compensation decisions may be made throughout the year.
In connection with determining compensation, our Compensation Committee has, in the past, retained the services of Aon Hewitt, as its independent compensation consultant to provide advice and recommendations on the amount and form of executive compensation. Aon Hewitt was selected by and reports to the Compensation Committee and does not provide any other services to the Company. Our Compensation Committee periodically seeks input from Aon Hewitt on a range of external market factors, including evolving compensation trends, appropriate peer companies and market survey data. Aon Hewitt also provides general observations on the Company’s compensation programs, including the compensation of our Executive Chairman and the design of our PSUs, each as described below.
Our Compensation Committee considered and assessed all factors relevant to Aon Hewitt’s independence, including factors specified in NYSE listing standards and Rule 10C-1(b) of the Exchange Act, as well as certain other factors that could give rise to a potential conflict of interest with respect to the work of Aon Hewitt. Based on this assessment, our Compensation Committee confirmed that no conflicts of interest were raised by the work performed by Aon Hewitt.
Our Compensation Committee also administers our cash-based and equity-based compensation plans and reviews our executive compensation program from time to time, including such compensation plans, to determine whether they are appropriate, properly coordinated, and achieving their intended purposes, and to make any modifications to existing plans and arrangements or to adopt new plans or arrangements.
Use of Comparative Market Data
We aim to compensate our executive officers at levels that are commensurate with competitive levels of compensation for executives in similar positions at peer companies, with whom we compete to hire and retain executive talent, although we do not attempt to link any single element of compensation to specific peer company percentiles or ratios. Market data is just one of a variety of factors considered in determining base salary, bonus targets, long-term equity awards and total compensation levels. The Compensation Committee and management believe that over-reliance on benchmarking can result in compensation that is unrelated to the value delivered by the executive officers because compensation benchmarking does not take the specific performance of the executive officers, or the performance of the Company, into account.
The Compensation Committee periodically reviews the composition of our peer group to determine whether any changes are appropriate. The Compensation Committee, in consultation with Aon Hewitt, reviewed and approved a new peer group in February 2019 that consisted of technology and software services companies that are similar to us in industry code, revenue, market capitalization and sales growth. Since the initial identification of the peer group companies, five are no longer publicly traded. Our current peer group, which was used in making compensation decisions in fiscal 2020, includes the following companies:
1-800-FLOWERS.COM, Inc. Cornerstone OnDemand, Inc. QuinStreet, Inc. TrueCar, Inc.
Bottomline Technologies, Inc. Endurance International Group Holdings, Inc. Quotient Technology, Inc. Vonage Holdings Corp.
Box, Inc. Envestnet, Inc. Redfin Corporation
Cloudera, Inc. MicroStrategy Incorporated Stitch Fix, Inc.
The companies that were excluded are Carbonite, Inc., Ellie Mae, Inc., Monotype Imaging Holdings, Inc., Nutrisystem, Inc. and Shutterfly, Inc.
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Executive Chairman Compensation
In developing compensation recommendations for Mr. Oringer, our Compensation Committee, in its business judgment, has sought to appropriately reward Mr. Oringer’s previous and current contributions, including as CEO, his critical contributions to the Company’s ongoing success and the success of our brand and to create incentives for Mr. Oringer to continue to contribute significantly to successful results in the future.
Cash Compensation
Since April 2014, Mr. Oringer’s annual base salary has been $1.00 (one dollar) and Mr. Oringer has remained ineligible to participate in our Short-Term Incentive Plan and receive an annual cash bonus. In providing for a $1.00 (one dollar) salary, the Compensation Committee intended to tie Mr. Oringer’s compensation almost entirely to the Company’s long-term business objectives and long-term stock price performance.
Equity Compensation
From our initial public offering in October 2012 through April 2014, Mr. Oringer did not receive any equity compensation for his services as our Founder and Chief Executive Officer.
In April 2014, the Compensation Committee approved a grant to Mr. Oringer of options to purchase 500,000 shares of our Common Stock, with an exercise price of $80.94, which vested in April 2019 but is only exercisable if the average closing price for our Common Stock equals or exceeds $161.88 during any 90 consecutive calendar day period occurring between the five year anniversary of the date of grant and the earlier of Mr. Oringer’s termination of service with the Company and April 23, 2024 (the expiration date of the stock option). In April 2014, the Compensation Committee also granted Mr. Oringer a performance-based RSU for 100,000 shares of our Common Stock, which vests if the average closing price for our Common Stock equals or exceeds $161.88 during any 90 consecutive calendar day period occurring between the five year anniversary of the date of grant and the earlier of Mr. Oringer’s termination of service with the Company and April 23, 2024, as long as Mr. Oringer provides continued service through the five-year anniversary of the date of grant.
If the Company is unable to meet the stock price targets during years six through ten of the term of the grant, the grants will be forfeited by Mr. Oringer.
In February 2016, the Compensation Committee, approved a grant of stock options to Mr. Oringer to purchase 250,000 shares of our Common Stock, with an exercise price equal to the fair market value as of the date of grant. This option vested over four years, becoming fully vested in March 2020.
The Compensation Committee recognizes that one of the Company’s key compensation philosophies is that long-term stock-based incentive compensation strengthens the alignment of the interests of our executive officers with our stockholders. In consultation with Aon Hewitt, its independent compensation consultant, the Compensation Committee believed it was in the best interest of the Company and its stockholders to grant Mr. Oringer a PSU award valued at $4,500,000 in April 2019, which would vest based on achievement of adjusted EBITDA measures. Given that substantially all of Mr. Oringer’s compensation is derived from the equity grants made to him, and a large portion of those grants constitute at-risk compensation that may not be realized, in April 2020, the Compensation Committee approved an additional PSU award valued at $4,500,000 for Mr. Oringer, which vests based on achievement of revenue and adjusted EBITDA measures. The number of PSUs subject to each grant was determined by dividing (x) the cash value of the award by (y) the average of the Company’s closing price for a share of Common Stock on each trading day during the thirty (30) trading days period ending on the date immediately prior to the applicable grant date, rounded down to the nearest whole number of shares. This number serves as the “target” number of shares that can actually be earned under the terms of the award.
Section 3 - Elements of 2020 Compensation
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The principal elements of our executive compensation program are set forth in the following table and described in more detail below.
Compensation Element Characteristics Objectives
Base Salary Annual fixed cash compensation Provide a fixed level of cash compensation to attract, retain and reward talented and skilled executive talent that is competitive for executive talent specific to our industry.
Annual Bonuses Annual variable, performance-based cash compensation determined by achievement of pre-established annual corporate goals and individual performance
Motivate and reward the achievement of annual financial and other operating objectives and individual performance to drive stockholder value over time.
Long-Term Incentive Compensation Variable equity compensation in three forms: (a) stock options, (b) restricted stock units, which vest in annual installments over a period of years (three years for awards granted in 2020); and/or (c) performance stock units, which vest based on achievement of company financial goals Align an executive’s interest with that of stockholders and motivate and reward profitable growth and increases in stock price over time. Aid in attraction and retention of executive talent.

Other Compensation Indirect compensation elements consisting of programs such as medical, dental and vision insurance, a 401(k) plan, life and disability insurance, flexible spending accounts and other plans and programs made available to eligible employees Provide benefits that promote employee health and welfare, wellness and retirement income and learning and development opportunities, which assists in attracting and retaining our executive officers.
We arrive at total compensation levels by determining appropriate levels for each element. The relative weight of each element is determined by the Compensation Committee based on its assessment of the effectiveness of each element in supporting our short-term and long-term strategic objectives.
In determining compensation for our NEOs, our Compensation Committee, with recommendations from our management, considers many variables, including each executive’s respective experience. While not formulaic or exhaustive, the variables considered in the past include:
the experience, knowledge, and performance of the executive officer in question;
the competitive market for similar executive talent;
how critical the retention of any particular executive is to achieving the Company’s strategic goals;
the performance of the Company against internal performance targets;
how well an executive works across business teams to promote overall corporate goals;
future potential contributions of the executive; and
pre-existing employment agreements between the Company and an executive officer.
Based on this analysis the Compensation Committee makes determinations as to each element of the compensation package, weighing each component in its discretion based on the facts and circumstances surrounding each NEO’s employment agreement or annual review.
We believe that our compensation mix supports our objective of focusing on at-risk compensation having significant financial upside based on company and individual performance. We expect to continue to emphasize equity awards because of the direct link that equity compensation provides between stockholder interests and the interests of our executive officers, thereby motivating our executive officers to focus on increasing our value over the long-term.
Base Salary
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We provide a base salary to our NEOs, other than Mr. Oringer, to compensate them in cash at a fixed amount for services rendered on a day-to-day basis during the year. We strive to set base salaries at levels that are competitive based on our review of market data. The base salaries of all NEOs are reviewed annually and adjusted from time to time to reflect individual roles and performance as well as market conditions.
In February 2020, the Compensation Committee reviewed and decided to maintain the base salary for named executive officers at their then-current base salary levels. Mr. Yahes joined the Company in December 2019 and his 2020 salary was approved by the Compensation Committee, in consultation with the Executive Chairman and the Chief Human Resource Officer, and took into account comparative market data from our peer group, Mr. Yahes’ scope of responsibility and leadership within the Company, the competitive landscape in New York City for hiring and retaining technology company executives, and subjective judgments as to Mr. Yahes’ qualifications, experience, job responsibilities, prior salary and internal pay equity comparisons. In connection with his appointment as Chief Executive Officer, the Compensation Committee approved an increase to Mr. Pavlovsky’s base salary to $700,000 effective April 1, 2020, however, in light of the uncertainty around the impact of the COVID-19 pandemic on the Company’s financial performance, Mr. Pavlovsky voluntarily elected to delay the increase in his base salary for a six-month period.
The table below sets forth the base salaries for our named executive officers at the end of 2020.
Named Executive Officer
Base Salary at
End of 2020
Jonathan Oringer $1
Stan Pavlovsky $700,000
Jarrod Yahes $550,000
Steven Ciardiello $375,000
Peter Silvio $500,000
Abraham Muchnick $400,000

Cash Incentives
In general, annual cash bonuses for our NEOs, other than Mr. Oringer, and other key employees are determined under our Short-Term Incentive Plan. The Short-Term Incentive Plan is an “at risk” bonus compensation program designed to foster a performance-oriented culture, where individual performance is aligned with the Company’s financial and business objectives. Our Short-Term Incentive Plan provides guidelines for the calculation of annual non-equity, incentive-based compensation that is subject to the Compensation Committee’s oversight and modification.
Each of our NEOs other than Mr. Muchnick has an employment agreement that provides for discretionary annual incentive compensation payable in cash upon the satisfaction of Company financial and business objectives approved by the Compensation Committee, as well as taking into consideration individual performance.
The target incentive compensation for fiscal 2020 for each of our NEOs, other than Mr. Oringer, as a percentage of the NEO’s base salary at the end of 2020 is set forth below:
Named Executive Officer
Target Incentive Compensation
Percentage of Base Salary at End of 2020
Stan Pavlovsky $700,000 100%
Jarrod Yahes $440,000 80%
Steven Ciardiello $187,500 50%
Peter Silvio $200,000 50%
Abraham Muchnick $200,000 50%

Performance Goals
Our Short-Term Incentive Plan was designed to reward our executive officers based on achievement of pre-established Company performance goals and the individual contribution of each executive to that performance. Specifically, in 2020, the Company performance metrics were based on achievement of (i) revenue and (ii) adjusted EBITDA, with a relative weighting of 50% and 50%. In addition, the Compensation Committee has discretion to
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increase or decrease the bonuses that otherwise would be paid under the Short-Term Incentive Plan based on an individual executive officer’s actual performance versus the specified goals.
The Compensation Committee chose the revenue and adjusted EBITDA measures with the belief that they motivate our executives to drive Company growth and profitability. To reflect performance above or below targets, achievement of the revenue and adjusted EBITDA goals are measured against sliding scales that provide for annual incentive bonus payouts greater than the target bonus if results are greater than target or less than the target bonus if results are lower than the target. In January 2020, the Committee established the performance goals for these two financial metrics before the onset of the COVID-19 pandemic. In setting the business performance scales, the Committee considered target Company performance under the challenging board-approved annual financial and long-term strategic plans, the potential payouts based on achievement at different levels on the sliding scale and whether the portion of incremental earnings paid as bonuses was appropriate. The targets, approved before the impact of the COVID-19 pandemic, were designed to be challenging while recognizing the economic environment existing at the time the goals were established, including the prospect of continued global macroeconomic, retail and consumer headwinds. The COVID-19 pandemic caused unforeseen disruption and volatility to business markets around the globe in a variety of ways and, as a result, in July 2020, the Compensation Committee reviewed and approved a revision to the performance goals that had been previously set that lowered the revenue target, but would still require achievement meaningfully above the then current management forecasts for target payout to be achieved and did not change the adjusted EBITDA targets.
For 2020, our specific financial targets were $626.0 million in revenue and $114.0 million in adjusted EBITDA.
Payout percentages resulting from achievement of revenue relative to the established target range from no payout for achievement under 91.5% of the established target to 160% payout for achievement at 110% or more of the target level, with 100% payout occurring at achievement at 100% of target. Similarly, the payout percentages resulting from achievement of Adjusted EBITDA relative to the established target range from no payout for achievement under 88% of the established target to 130% for achievement at 110% or more of the target level, with 100% payout occurring at achievement of 100% of target.
In February 2021, the Compensation Committee reviewed actual results for 2020 with respect to revenue and adjusted EBITDA and the Compensation Committee determined that the Company achieved the following financial results and payout percentages:
Revenue Adjusted EBITDA
Target (millions) 626.0 114.0
2020 Results (millions) 666.7 154.9
Target Achieved 139% 130%
Payout Percentage 69.5% 65%
Individual bonus payments are based on a formula determined by taking each person’s base annual compensation, multiplied by an individual target bonus percentage, multiplied by the Company achievement score expressed as a percentage. Bonus amounts paid to any employee or executive can then be increased or decreased, regardless of that person’s target bonus or specific corporate performance metrics, based on individual performance or other considerations, in the discretion of the Compensation Committee. Based on the level of performance achievement described above, the payout percentage would have been 134.5% for the NEOs. The Compensation Committee, however, at management’s request, approved a payout percentage for each of the NEOs and all other Company employees equal to 117.1% of their target bonus.
In determining to exercise this downward discretion in respect of NEO bonus payouts, the Committee took into consideration that (i) the Company had exceeded targets, (ii) applying the originally contemplated payout structure may have negatively impacted the goal of promoting employee satisfaction and retention and (iii) the recommendation of management to equalize the impact of the company’s over-target performance results for all bonus participants. Given these considerations and the Committee’s decision to fund the bonus pool at 117.1% for all employees, the Committee awarded the NEOs the bonus amounts set forth in the table below.
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Named Executive Officer(1)
Target Payout Payout based on Company Achievement Score % Increase/(Decrease) in Payout Actual Payout
Stan Pavlovsky $700,000 $941,500 (13)% $819,700
Jarrod Yahes $440,000 $591,800 (13)% $515,250
Steven Ciardiello $187,500 $252,188 (13)% $219,550
Peter Silvio $200,000 $269,000 (13)% $234,200
(1) Mr. Muchnick separated from the Company on January 11, 2021.

Long-term Incentive Compensation
Long-term incentives represent the primary component of compensation at the Company and are designed to reward participants the way stockholders are rewarded, through growth in the value of our Common Stock. Our NEOs receive either stock options, RSUs or PSUs, or a combination of any of the three. Regardless of the form of award, the overarching purpose of our long-term incentive grants is to align executives’ interests with those of our stockholders, reward employees for enhancing stockholder value and attract and retain our executive officers.
In determining the size of equity-based awards for existing executive officers, the Compensation Committee, upon recommendations of management, as applicable, considers various subjective factors primarily relating to the responsibilities of the individual executive officer, past performance, and the executive officer’s expected future contributions and value to the Company. In making a recommendation to the Compensation Committee, management also considers the executive officer’s historic total compensation, including prior equity grants and exercise history, as well as the number and value of shares owned by the executive officer or which continue to be subject to vesting under outstanding equity grants previously made to such executive officer.
In determining the size of equity-based awards for new hires, the Compensation Committee and Chief Executive Officer consider a variety of factors, including the compensation of similarly situated executive officers at the Company, the executive officer’s expected level of responsibility and expected contributions to the Company’s future success, and the compensation of similarly situated executive officers at selected peer companies. As the purpose of equity awards is to tie total compensation to long-term stockholder value, executive officers receive sizeable stock-based awards at the time of hire to align their interests to reward long-term performance.
Long-term incentive awards are typically granted annually or upon hire, but the Compensation Committee may award equity at other times during the year to further reward or to encourage retention of our executive officers, including our NEOs. For both new hire and periodic equity grants, management develops grant recommendations for the Compensation Committee by subjectively evaluating the factors above, as applicable, to set a total compensation target for each executive officer and then designing equity awards to help meet those total compensation targets based on stock price appreciation assumptions, taking into account the executive officer’s cash compensation and the estimated value of pre-existing stock-based compensation vesting in subsequent years, if any. In this process, management views projected total compensation for a given year as cash compensation expected to be earned in that year plus an assumed value of stock-based compensation vesting in that year. Because we focus on total compensation over time and take into account existing compensation, equity awards for a smaller number of shares do not necessarily reflect lower total compensation and equity awards for a larger number of shares do not necessarily reflect higher total compensation.
Stock Options
Except for the stock options granted to Mr. Oringer in 2014, which are more fully described above under “Executive Compensation Philosophy & Objectives - Executive Chairman Compensation,” stock options are granted under the Amended and Restated 2012 Plan at an exercise price equal to the closing price of our Common Stock on the grant date. The number of options granted to an executive is determined by dividing the fair market value of the option award by the Black-Scholes valuation on the grant date, rounded down to the nearest whole number of shares. We do not issue stock options with accelerated vesting features, except as specified in certain employment agreements.
Although we are required to recognize a charge for the value of an option when granted that might be disproportionate to the value received by the recipient upon exercise, we believe the granting of options is
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performance-based and aligns the interests of recipients with those of stockholders because the recipient only realizes value if our Common Stock appreciates above the grant date price.
Restricted Stock Units
Under the Amended and Restated 2012 Plan, we grant RSUs, which are the right to receive shares of our Common Stock, that are subject to continued employment through the applicable vesting date. The number of RSUs granted to an executive is determined by dividing the fair market value of the RSU grant by the average of the Company’s closing price for a share of Common Stock on each trading day during the thirty (30) trading days period ending on the date immediately prior to the grant date. RSUs are granted to executive officers, including our NEOs, to serve primarily as a retention mechanism and to award individual performance.
Stock option or RSU grants to our executive officers, including our NEOs, are currently structured to vest in equal installments over three years to balance the objective of retaining and incentivizing our executive officers, achieving key short-term deliverables with respect to our financial performance, and the long-term stability of the organization.
Performance Stock Units
In April 2019, the Compensation Committee determined it was in the best interest of the Company, as part of the overall long-term incentive compensation program, to grant our executive officers PSUs designed to focus our executive officers on achieving important long-term financial objectives over a three-year period. A portion of the PSUs vest annually, contingent on continued service and the achievement of the specified performance goals in the specific years. The annual targets for each of the PSU grants were set by the Compensation Committee over a three-year period based on the Company’s strategic objectives and goals, which we consider to be confidential and disclosure of those targets could provide information that could lead to competitive harm, and for this reason the targets themselves have not been disclosed at the time of grant; however, the Compensation Committee seeks to make target goals ambitious, requiring meaningful growth over the performance period, while threshold goals are expected to be achievable. Information about the payout results as a percentage of target as well as the resulting payout for the applicable fiscal year PSUs as a percentage of target after the end of the applicable performance period are being disclosed for the years that have been completed. For each tranche of the PSU award that is eligible to vest on a vesting date, vesting is contingent on the Company achieving at least a threshold of the performance metrics goal for the fiscal year prior to the fiscal year in which the vesting date occurs, under the following schedule:
Achievement Level Percentage Vesting
Outstanding 150%
Target 100%
Threshold 75%
For the PSUs granted in 2019, if the threshold goal is not achieved in an applicable performance year, vesting of that tranche is delayed to the next scheduled vesting date for which the applicable performance metric is achieved. Therefore, for the PSUs granted in 2019, unvested awards from prior years may vest cumulatively on the scheduled vesting date for a future year within the three-year vesting period if the performance metric threshold for that year is achieved. If, however, for the PSUs granted in 2019, the performance metric threshold levels have not been met in any of the performance years by the end of the three-year period, any unvested PSUs will be forfeited. The Compensation Committee, in consultation with management, determined that the ability to rollover awards from prior performance period equity awards into subsequent performance years should not be included in the PSUs granted in 2020.
The PSU’s goals and payout opportunity are intended to reflect the same key metrics we use to manage our business and drive stockholder returns over time, including Adjusted EBITDA. The PSUs granted in 2019 (“2019 PSUs”), comprise three tranches of annual performance periods with performance targets for each annual tranche. The targets for the tranche pertaining to fiscal 2019 were not achieved so a payout was not achieved for that tranche, however, as described above, the 2019 PSUs provide that tranches for performance periods where performance targets are not achieved may be rolled into subsequent tranches, and if the next tranche’s performance targets are achieved the rolled-over tranche pays out in line with the subsequent tranche.
In February 2020, the Compensation Committee reviewed and approved additional PSU grant amounts (“2020 PSUs”) prior to the onset of the COVID-19 pandemic, with plan payout based on Adjusted EBITDA margins and
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revenue growth. The performance metrics initially approved by the Compensation Committee were reviewed in light of the uncertainties created by the COVID-19 pandemic and, in July 2020, the Compensation Committee approved a slightly lower final revenue performance metric as it related to the first tranche of the 2020 PSUs only. The 2020 PSUs comprise three tranches of annual performance periods with performance targets for each annual tranche, and do not include the rollover feature for years in which at least threshold performance is not achieved. The Compensation Committee did not modify the Adjusted EBITDA margin performance metric for the first tranche of the 2020 PSUs or the revenue or Adjusted EBITDA margin performance metrics for the two subsequent annual tranches of the 2020 PSUs.
In February 2021, the Compensation Committee certified the fiscal 2020 Adjusted EBITDA of $154.9 million, Adjusted EBITDA margin of 23.2% and revenue of $666.7 million therefore, the applicable targets were met and there were payouts in respect of the first and second tranches of the 2019 PSUs and the first tranche of the 2020 PSUs.
The 2020 financial results translated into a 131.9% achievement of the performance targets for the 2019 PSUs, resulting in a payout under the second annual tranche of the 2019 PSUs, which included the rollover of the first annual tranche, and into a 150.0% achievement of the performance targets for the 2020 PSUs, resulting in a payout under the first annual tranche of the 2020 PSUs.

The table below summarizes the long-term incentive grants made to our NEOs in 2020.
Named Executive Officer(1)
2020 RSU Grants
($ Value)
2020 RSU Grants
(Number of Shares)
2020 PSU Grants (Target $ Value)
2020 PSU Grants (Target Number of Shares)
2020 Option Grants
($ Value)
2020 Option Grants
(Number of Shares)
Jonathan Oringer 4,500,000 124,930
Stan Pavlovsky 1,000,000 27,762 4,500,000 124,930
Jarrod Yahes 1,000,000 23,562 250,000 6,940 1,000,000 53,022
Steven Ciardiello 225,000 6,246 450,000 12,493
Peter Silvio 500,000 13,881
(1) Mr. Muchnick separated from the Company effective January 11, 2021 and, pursuant to a severance and general release, forfeited all unvested outstanding equity awards.


All equity awards granted in 2020 to our NEOs vest in annual installments over three years at 33.3%, 33.3% and 33.4%, respectively, subject to the NEO’s continued service with us, and performance conditions, as applicable. We believe that, at this stage in our growth, time-based equity awards as well as performance-based equity awards align the interests of our named executive officers with the long-term interests of our stockholders and provide incentives to our named executive officers to continue to build and grow the Company, to enhance stockholder value and to attract and retain our executives. We also aim to have NEO equity compensation weighted more towards performance-based equity awards rather than time-based equity awards.
Other Compensation
Other Benefits
Our named executive officers are eligible to participate in the same group insurance and employee benefit plans generally available to our other salaried employees in the United States. We provide employee benefits to all eligible employees in the United States, including our named executive officers, which our Compensation Committee believes are reasonable and consistent with its overall compensation objective to better enable us to attract and retain employees. These benefits include medical, dental and vision insurance, a 401(k) plan with a corporate match of up to 50% of eligible payroll contributions including catch-up contributions, life and disability insurance, business travel insurance, flexible spending accounts, fitness reimbursements, learning and development opportunities and other plans and programs. At this time, we do not provide any other special plans or programs for our named executive officers. Employee benefits and perquisites are reviewed from time to time to ensure that benefit levels remain competitive for the Company as a whole, including for our named executive officers. We do not offer special or extraordinary perquisites to our named executive officers.
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Section 4 - Other Compensation Information
The prior three sections of this CD&A describe how we think about compensation and how that affects our pay practices. Other compensation related details that may be important to our investors are described below.
Compensation Risk Assessment
Our Compensation Committee assesses and considers potential risks when reviewing and approving our compensation policies and practices for our executive officers and our employees. We have designed our compensation programs, including our incentive compensation plans, with features to address potential risks while rewarding employees for achieving financial and strategic objectives through prudent business judgment and appropriate risk taking. Based upon its assessment, our Compensation Committee believes that any risks arising from our compensation programs do not create disproportionate incentives for employees, including our named executive officers to take risks that could have a material adverse effect on us in the future.
Equity Grant Policy
Equity awards granted to our employees, including our named executive officers, are generally approved on a monthly basis by our Compensation Committee. In December 2019, our Compensation Committee delegated authority to the Chief Executive Officer, Chief Financial Officer, Chief Human Resources Officer and General Counsel of the Company to grant equity awards in 2020 to employees of the Company, who are not executive officers. Grants under this delegation could not exceed 530,000 shares, net of forfeitures, in the aggregate and no grant under this delegation during any fiscal year to an individual employee can exceed $350,000 or be greater than 1.5x such person’s base salary. Grants of equity under this delegation are generally effective on the first business day of the month following approval of the equity award.
For newly-hired executive officers, grants of equity awards are generally effective on the first business day of the month following the date on which the executive officer commenced employment with us. For existing executive officers, grants of equity awards are generally effective on the first business day of the month following the date on which the Compensation Committee determined to make the award.
The purchase or equity exercise price of all equity awards is based on the closing price of our Common Stock on that first business day of the month, which is the date of grant.
Separation Arrangements
In line with our objective to retain our executive officers and incent them to continue to focus and remain dedicated to their responsibilities and to maximize stockholder value, including in the event of a transaction that could result in a change in control of our Company, we have entered into employment agreements with our executive officers that provide for certain severance payments in connection with certain termination events, including a termination in connection with a change in control. Further, consistent with best practices, none of our NEOs are entitled to excise tax gross-up payments. For each of our NEOs, these separation arrangements are described below under “Employment Agreements and Compensatory Arrangements” and “Potential Payments Upon Termination or Change in Control.”
Executive Clawback Policy
In December 2016, our Compensation Committee recommended, and our Board approved, a Clawback Policy which requires the recovery of certain incentive-based compensation payments paid to an executive officer if the Company is required to prepare an accounting restatement of its financial statements as a result of material noncompliance with any financial reporting requirements under federal securities laws. The Clawback Policy became effective in April 2017.
The Clawback Policy provides that in the event the Company is required to prepare an accounting restatement of its financial statements as a result of material noncompliance with any financial reporting requirements, the Board, upon recommendation from the Compensation Committee, will make a reasonable attempt to recover any incentive-based compensation paid to an executive officer in excess of that which would have been paid under the restated financial statements. The Clawback Policy further provides that if a current or former employee who is not an executive officer committed an act or omission that contributed to the circumstances requiring the accounting
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restatement and which involved negligence, misconduct, wrongdoing or violations of Company rules or of any applicable legal or regulatory requirements, the Board, upon recommendation of the Compensation Committee, will make a reasonable attempt to recover any incentive-based compensation paid to such employee in excess of that which would have been paid under the restated financial statements.
If the Compensation Committee or the Board determines that an employee, including an executive officer, committed an act or omission that contributed to the circumstances requiring the accounting restatement and which involved willful, knowing or intentional misconduct or a willful, knowing or intentional violation of any of the Company’s rules or any applicable legal or regulatory requirements, fraud or other illegal conduct, the Company will make a reasonable attempt to recover 100% of such employee’s incentive-based compensation and not just the excess.
Additionally, our Amended and Restated 2012 Plan and related award agreements provide for the recoupment of performance-based annual incentives and long-term incentives consistent with applicable law and the Clawback policy. 
Tax and Accounting Treatment of Compensation
Prior to its amendment by the Tax Cuts and Jobs Act of 2017 (“TCJA”), Section 162(m) of the U.S. Internal Revenue Code of 1986, as amended (“Section 162(m)”), prohibited the Company from taking a tax deduction for compensation paid in excess of $1,000,000 to a named executive officer (other than the principal financial officer), except in the case of compensation that was considered under the regulations to qualify as “performance-based compensation” or was exempt under transition period rules applicable to new public-reporting companies. Since its initial public offering in 2012, as well as in 2017, the first year in which the Company was no longer covered by the newly public company transition-period exemption, the Compensation Committee has awarded certain cash and equity based incentive compensation awards that it had intended to be exempt from the Section 162(m) deduction limitations, either in reliance on the transition rules for newly public companies, the “performance-based compensation” exception and/or the regulations generally regarding the group of executives covered by the Section 162(m) limitations. With the amendment to Section 162(m) under the TCJA, beginning in 2018, except for certain grandfathered arrangements in place prior to November 2, 2017 under the amendment’s transition rules, Section 162(m) no longer includes an exception to the deduction limitations for “performance-based compensation” and expands the group of executive officers covered by the limitation. Based on the proposed regulations published on December 20, 2019, we believe that those elements of the cash and equity-based incentive compensation granted to our executive officers prior to November 2, 2017 that were intended to be exempt from the Section 162(m) deduction should, pending any further guidance, continue to be treated as exempt from the limitations under the transition rules.
Accounting for Executive Compensation
We follow ASC Topic 718 for our stock-based awards. ASC Topic 718 requires companies to measure the compensation expense for all share-based payment awards made to employees and directors, including stock options and restricted stock unit awards, based on the grant date “fair value” of these awards. This calculation is performed for accounting purposes and reported in the compensation tables below, even though our named executive officers may never realize any value from their awards. ASC Topic 718 also requires companies to recognize the compensation cost of their stock-based compensation awards in their income statements over the period that a named executive officer is required to render service in exchange for the option or other award. Accounting rules also require us to record cash compensation as an expense over the period in which service is rendered to the Company.
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Compensation Committee Report
The Compensation Committee has reviewed and discussed the Compensation Discussion and Analysis with management and, based on its review and discussions with management, the Compensation Committee recommended to the Board that the Compensation Discussion and Analysis be included in this proxy statement.
Members of the Compensation Committee
Deirdre Bigley (Chairwoman)
Rachna Bhasin
Paul J. Hennessy
Thomas R. Evans

The Compensation Committee Report above does not constitute “soliciting material” and will not be deemed “filed” or incorporated by reference into any of our filings under the Securities Act of 1933, as amended (the “Securities Act”) or the Exchange Act that might incorporate our SEC filings by reference, in whole or in part, notwithstanding anything to the contrary set forth in those filings.

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Employment Agreements and Compensatory Arrangements
The material terms of the employment agreements and compensatory arrangements with our NEOs are set forth below.
Jonathan Oringer
Mr. Oringer is employed as our Founder and Executive Chairman, and served as our Chief Executive Officer up to April 1, 2020, pursuant to an employment agreement, dated September 24, 2012. Mr. Oringer’s employment agreement was amended in 2020 in connection with his appointment as Executive Chairman to reflect his new role. Mr. Oringer’s employment agreement generally provides for the following key terms:
at-will employment;
base salary of $250,000, which was reduced to $1 by the Compensation Committee effective as of April 24, 2014;
ineligibility for participation in our Short-Term Incentive Plan;
ability to participate in employee benefit plans generally available to those of our other executive officers; and
reimbursement for necessary and reasonable business expenses.
Mr. Oringer also entered into a Severance and Change in Control Agreement, dated September 24, 2012, which was amended in 2020 in connection with his appointment as Executive Chairman to reflect his new role. Pursuant to the Severance and Change in Control Agreement (the “Severance and CiC Agreement”), if the Company terminates Mr. Oringer’s employment without “cause” (as defined in the Severance and CiC Agreement), other than due to his death or “disability” (as defined in the Severance and CiC Agreement) at any time other than during the 24-month period immediately following a “change in control” (as defined in the Severance and CiC Agreement), Mr. Oringer will receive all accrued but unpaid vacation, expense reimbursements, wages and other benefits due to Mr. Oringer under Company-provided plans, policies and arrangements and, subject to his execution of a satisfactory release and compliance with the covenants described below, the following severance benefits from the Company:
cash severance in an amount equal to 12 months of his then-current base salary, which will be paid in three equal installments on each of the following dates: (x) his termination of employment, (y) the six-month anniversary of his termination and (z) the one-year anniversary of his termination of employment;
a lump sum payment of a pro rata annual bonus at 100% of the then-current target for the year in which the termination of employment occurs based on the number of days worked relative to 365 days;
reimbursement for premiums paid for coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), for Mr. Oringer and his eligible dependents for up to 12 months;
accelerated vesting of the then-unvested portion of all of Mr. Oringer’s outstanding equity awards as if he had remained employed for 12 months following his termination of employment;
the post-termination exercise period for the outstanding vested options will be extended to 18 months following his termination of employment; and
outplacement benefits for six months following termination of employment, up to a maximum of $5,000.
Further, if we terminate Mr. Oringer’s employment with the Company without “cause,” other than due to Mr. Oringer’s death or “disability” or Mr. Oringer resigning for “good reason” (as defined in the Severance and CiC Agreement), in either case at any time during the twenty-four month period immediately following a “change of control,” Mr. Oringer will receive the “accrued benefits,” (as defined in the Severance and CiC Agreement) and,
40

subject to his execution of a satisfactory release and compliance with the covenants described below, Mr. Oringer will also receive severance payments and benefits set forth above, except as follows:
cash severance in an amount equal to 12 months of his then current base salary, in a single lump sum payment;
lump sum payment equal to 100% of his full target bonus for the fiscal year in effect at the date of termination of employment; and
accelerated vesting of 100% of the then-unvested portion of all of Mr. Oringer’s outstanding equity awards.
Mr. Oringer’s Severance and CiC Agreement contains customary confidentiality, non-competition, non-solicitation of employees or customers and non-disparagement provisions. Under the agreement, Mr. Oringer cannot compete with the Company for a 12-month period after termination. The non-solicitation and non-disparagement covenant also extends for 12 months after termination.
Stan Pavlovsky
Mr. Pavlovsky was appointed Chief Executive Officer effective April 1, 2020 and prior to that served as our President & Chief Operating Officer pursuant to an employment agreement dated February 28, 2019, which was amended on November 5, 2019 and further amended on February 11, 2020. Mr. Pavlovsky’s employment agreement, as amended, generally provides for the following key terms:
at-will employment, which commenced effective April 1, 2019;
base salary of $700,000, which, in light of the uncertainty around the impact of the Covid-19 pandemic, Mr. Pavlovsky voluntarily agreed to postpone effectiveness until October 2020;
an annual cash bonus opportunity, with a target award equal to 100% of his base salary, based on the achievement of individual and company performance-based objectives established by our Compensation Committee;
ability to participate in employee benefit plans generally available to those of our other executive officers; and
reimbursement for necessary and reasonable business expenses.
If the Company terminates Mr. Pavlovsky’s employment without “cause” (as defined in his employment agreement), other than due to his death or “disability” (as defined in his employment agreement) at any time other than during the 12-month period immediately following a “change in control” (as defined in his employment agreement), in addition to the receipt of “accrued benefits” (as defined in his employment agreement) and subject to his execution of an acceptable release and compliance with the covenants described below, Mr. Pavlovsky will receive the following severance benefits from the Company:
cash severance in an amount equal to 12 months of his base salary, which will be paid in installments in accordance with the Company’s regular payroll procedures commencing on the 60th day after the date of his termination;
a lump sum payment of a pro rata annual bonus based on actual performance for the year in which the termination of employment occurs based on the number of days worked relative to 365 days;
reimbursement for premiums paid for coverage pursuant to COBRA for such executive and his eligible dependents for up to 12 months and;
if Mr. Pavlovsky’s termination date is at least 12 months following the effective date of his employment, accelerated vesting of the then-unvested portion of all his outstanding equity awards as if he had remained employed for 12 months following his termination of employment.
41

If the Company terminates Mr. Pavlovsky’s employment with the Company without “cause,” other than due to Mr. Pavlovsky’s death or “disability”, or Mr. Pavlovsky resigns for “good reason” (as defined in his employment agreement), in either case at any time during the 12 month period immediately following a “change in control”, then Mr. Pavlovsky will receive the “accrued benefits” and subject to his execution of an acceptable release and compliance with the covenants described below, Mr. Pavlovsky will receive the severance payments and benefits set forth above, except as follows:
cash severance in an amount equal to twelve months of his then-current base salary in a single lump sum payment;
a lump sum payment equal to 100% of his full target bonus for the fiscal year in effect at the date of termination of employment; and
accelerated vesting of all his outstanding unvested equity awards, unless otherwise set forth in a performance stock unit award agreement.
Mr. Pavlovsky is also subject to the Company’s Confidentiality, Non-Disclosure, Inventions, Non-Solicitation and Non-Competition Agreement, which contains customary confidentiality, non-competition, and non-solicitation of employees or customers provision. Under the agreement, Mr. Pavlovsky cannot compete with the Company for a 12 month period after termination. The non-solicitation covenant also extends for 12 months after termination.
Jarrod Yahes
Mr. Yahes is employed as our Chief Financial Officer pursuant to an employment agreement dated November 7, 2019. Mr. Yahes’ employment agreement generally provides for the following key terms:
at-will employment, which commenced effective December 9, 2019;
base salary of $550,000;
an annual cash bonus opportunity, with a target award equal to 80% of his base salary, based on the achievement of individual and company performance-based objectives established by our Compensation Committee and pro-rated for his initial year of service;
ability to participate in employee benefit plans generally available to those of our other executive officers; and
reimbursement for necessary and reasonable business expenses.
If the Company terminates Mr. Yahes’ employment without “cause” (as defined in his employment agreement), other than due to his death or “disability” (as defined in his employment agreement), at any time other than during the 12-month period immediately following a “change in control” (as defined in his employment agreement), then Mr. Yahes will receive the “accrued benefits” (as defined in his employment agreement), and, subject to his execution of an acceptable release and compliance with the covenants described below, Mr. Yahes will also receive the following severance benefits from the Company:
cash severance in an amount equal to 12 months of his base salary, which will be paid in installments in accordance with the Company’s regular payroll procedures commencing on the 60th day after the date of his termination;
a lump sum payment of a pro rata annual bonus based on actual performance for the year in which the termination of employment occurs based on the number of days worked relative to 365 days;
reimbursement for premiums paid for coverage pursuant to COBRA for such executive and his eligible dependents for up to 12 months; and
if Mr. Yahes’ termination date is at least 12 months following the effective date of his employment, accelerated vesting of the then-unvested portion of all his outstanding equity awards as if he had remained employed for 12 months following his termination of employment.
42

If we terminate Mr. Yahes’ employment with the Company without “cause,” other than due to Mr. Yahes’ death or “disability,” or Mr. Yahes resigns for “good reason” (as defined in his employment agreement), in either case at any time during the 12-month period immediately following a “change in control”, then Mr. Yahes will receive the “accrued benefits” and, subject to his execution of an acceptable release and compliance with the covenants described below, Mr. Yahes will receive severance benefits set forth above, except as follows:
cash payment of severance in an amount equal to twelve months of his then current base salary, in a single lump sum payment;
a lump sum payment equal to 100% of his full target bonus for the fiscal year in effect at the date of termination of employment; and
accelerated vesting of all his outstanding unvested equity awards, unless otherwise set forth in a performance stock unit award agreement.
Mr. Yahes is also subject to the Company’s Confidentiality, Non-Disclosure, Inventions, Non-Solicitation and Non-Competition Agreement, which contains customary confidentiality, non-competition, and non-solicitation of employees or customers provision. Under the agreement, Mr. Yahes cannot compete with the Company for a 12-month period after termination. The non-solicitation covenant also extends for 12 months after termination.
Steven Ciardiello
Mr. Ciardiello is employed as our Chief Accounting Officer pursuant to an employment agreement dated August 5, 2019 and which was amended on November 5, 2019. Mr. Ciardiello’s employment agreement, as amended, generally provides for the following key terms:
at-will employment, which commenced effective November 14, 2016;
base salary of $375,000;
an annual cash bonus opportunity, with a target award equal to 50% of his base salary, based on the achievement of individual and company performance-based objectives established by our Compensation Committee and pro-rated for his initial year of service;
ability to participate in employee benefit plans generally available to those of our other executive officers; and
reimbursement for necessary and reasonable business expenses.
If the Company terminates Mr. Ciardiello’s employment without “cause” (as defined in his employment agreement), other than due to his death or “disability” (as defined in his employment agreement), at any time other than during the 12 month period immediately following a “change in control” (as defined in his employment agreement), Mr. Ciardiello will receive the “accrued benefits” (as defined in his employment agreement) and, subject to his execution of an acceptable release and compliance with the covenants described below, Mr. Ciardiello will also receive the following severance benefits from the Company:
cash severance in an amount equal to 12 months of his base salary, which will be paid in installments in accordance with the Company’s regular payroll procedures commencing on the 60th day after the date of his termination;
a lump sum payment of a pro rata annual bonus based on actual performance for the year in which the termination of employment occurs based on the number of days worked relative to 365 days;
reimbursement for premiums paid for coverage pursuant to COBRA for such executive and his eligible dependents for up to 12 months; and
if Mr. Ciardiello’s termination date is at least 12 months following the effective date of his employment, accelerated vesting of the then-unvested portion of all his outstanding equity awards as if he had remained employed for 12 months following his termination of employment.
43

If we terminate Mr. Ciardiello’s employment with the Company without “cause,” other than due to Mr. Ciardiello’s death or “disability”, or Mr. Ciardiello resigns for “good reason” (as defined in his employment agreement), in either case, at any time during the 12-month period immediately following a “change in control”, in addition to the “accrued benefits” and subject to his execution of an acceptable release and compliance with the covenants described below, Mr. Ciardiello will receive severance benefits set forth above, except as follows:
cash severance in an amount equal to 12 months of his then-current base salary in a single lump sum payment;
lump sum payment equal to 100% of his full target bonus for the fiscal year in effect at the date of termination of employment; and
accelerated vesting of all his outstanding unvested equity awards, unless otherwise set forth in performance stock unit award agreement.
Mr. Ciardiello is also subject to the Company’s Confidentiality, Non-Disclosure, Inventions, Non-Solicitation and Non-Competition Agreement, which contains customary confidentiality, non-competition, and non-solicitation of employees or customers provision. Under the agreement, Mr. Ciardiello cannot compete with the Company for a 12 month period after termination. The non-solicitation covenant also extends for 12 months after termination.
Peter Silvio
Mr. Silvio is employed as our Chief Technology Officer pursuant to an employment agreement, dated November 4, 2019. Mr. Silvio’s employment agreement generally provides for the following key terms:
at-will employment, which commenced effective June 19, 2017;
base salary of $400,000;
an annual cash bonus opportunity, with a target award equal to 50% of his base salary, based on the achievement of individual and company performance-based objectives established by our Compensation Committee;
ability to participate in employee benefit plans generally available to those of our other executive officers; and
reimbursement for necessary and reasonable business expenses.
If the Company terminates Mr. Silvio’s employment without “cause” (as defined in his employment agreement), other than due to his death or “disability” (as defined in his employment agreement), at any time other than during the 12 month period immediately following a “change in control” (as defined in his employment agreement), Mr. Silvio will receive the “accrued benefits” (as defined in his employment agreement) and, subject to his execution of an acceptable release and compliance with the covenants described below, Mr. Silvio will also receive the following severance benefits from the Company:
cash severance in an amount equal to 12 months of his base salary, which will be paid in installments in accordance with the Company’s regular payroll procedures commencing on the 60th day after the date of his termination;
a lump sum payment of a pro rata annual bonus based on actual performance for the year in which the termination of employment occurs based on the number of days worked relative to 365 days;
reimbursement for premiums paid for coverage pursuant to COBRA for such executive and his eligible dependents for up to 12 months; and
if Mr. Silvio’s termination date is at least 12 months following the effective date of his employment, accelerated vesting of the then-unvested portion of all his outstanding equity awards as if he had remained employed for 12 months following his termination of employment.
44

If we terminate Mr. Silvio’s employment with the Company without “cause,” other than due to Mr. Silvio’s death or “disability”, or Mr. Silvio resigns for “good reason” (as defined in his employment agreement), in either case, at any time during the 12-month period immediately following a “change in control”, in addition to the “accrued benefits” and subject to his execution of an acceptable release and compliance with the covenants described below, Mr. Silvio will receive severance benefits set forth above, except as follows:
cash severance in an amount equal to 12 months of his then-current base salary in a single lump sum payment;
lump sum payment equal to 100% of his full target bonus for the fiscal year in effect at the date of termination of employment; and
accelerated vesting of all his outstanding unvested equity awards, unless otherwise set forth in performance stock unit award agreement.
Mr. Silvio is also subject to the Company’s Confidentiality, Non-Disclosure, Inventions, Non-Solicitation and Non-Competition Agreement, which contains customary confidentiality, non-competition, and non-solicitation of employees or customers provision. Under the agreement, Mr. Silvio cannot compete with the Company for a 12 month period after termination. The non-solicitation covenant also extends for 12 months after termination.
Abraham (Avi) Muchnick
Mr. Muchnick did not have an employment agreement with the Company and he separated from the Company on January 11, 2021. For a summary of payments made to Mr. Muchnick upon his separation from the Company, see “Potential Payments Upon Termination or Change in Control” below.


45

Summary Compensation Table
The following table sets forth information regarding the compensation awarded to, earned by, or paid to each of our named executive officers during the fiscal years ended December 31, 2020, December 31, 2019 and December 31, 2018, as applicable.
Name and Principal Position Year
Salary(1)
($)
Bonus
($)
Stock
Awards
($)(2)
Option
Awards
($)(2)
Non-Equity
Incentive Plan
Compensation(3)
All Other
Compensation
($)
Total
($)
Jonathan Oringer 2020 1 —  4,762,332  —  — 
493,626(5)
5,255,958 
Executive Chairman(4)
2019 1 —  4,597,471  —  — 
1,105(6)
4,598,576 
2018 1 —  —  —  — 
660(6)
661 
Stan Pavlovsky(7)
2020 610,385 —  5,583,809  819,700
11,865(8)
7,025,759 
Chief Executive Officer 2019 450,000  —  2,298,689  1,499,991  312,000 
7,442(9)
4,568,122 
Jarrod Yahes(10)
2020 539,423 1,270,886  999,995 515,250
11,250(11)
3,336,804 
Chief Financial Officer 2019 31,731  —  —  —  18,000  —  49,731 
Steven Ciardiello 2020 367,789 —  661,052  —  219,550
11,460(12)
1,259,851 
Chief Accounting Officer 2019 372,692 
200,000(13)
910,851  —  121,875 
9,902(14)
1,615,320 
Peter Silvio(15)
2020 392,308 —  529,144  —  234,200
10,770(16)
1,166,422 
Chief Technology Officer
Abraham Muchnick(17)
2020 307,693  —  751,852  —  — 
13,697(18)
1,073,241 
Former Chief Product Officer


(1)    Starting January 2020, the Company paid salary one week in arrears instead of current.
(2)    Amounts represent the aggregate grant date fair value computed in accordance with ASC Topic 718 for RSUs, PSUs and options granted to the NEOs. A discussion of the assumptions used in determining grant date fair value may be found in Note 10 to our audited consolidated financial statements included in our 2020 Annual Report. See also our discussion in our 2020 Annual Report of equity-based compensation under “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations-Critical Accounting Policies and Estimates-Equity-Based Compensation.” Please also refer to the Grants of Plan-Based Awards in 2020 table for information on stock awards made in 2020. These amounts do not necessarily represent the actual value that may be realized by the NEOs. Of the amounts shown in 2020 for each NEO, PSUs represented: all of the Stock Awards for Mr. Oringer, $4,762,332 for Mr. Pavlovsky, $264,553 for Mr. Yahes, $476,233 for Mr. Ciardiello, and $529,144 for Mr. Silvio. For the PSUs granted in 2020, assuming the aggregate grant date fair value, if the maximum performance level is achieved, the amounts that would be received with respect to the 2020 PSUs calculated as of the grant date are as follows: Mr. Oringer, $7,143,459, Mr. Pavlovsky $7,143,459, Mr. Yahes, $396,829, Mr. Ciardiello, $714,293, and Mr. Silvio, $793,697.
(3)    Amounts shown in the non-equity incentive plan compensation column represent performance-based bonuses earned under the Short-Term Incentive Plan for performance during 2020, but actually paid in 2021. For further information regarding our Short-Term Incentive Plan, see “Compensation Discussion and Analysis - Section 3 - Elements of 2020 Compensation - Cash Incentives.”
(4)    Mr. Oringer stepped down as Chief Executive Officer effective April 1, 2020 and assumed the role of Executive Chairman.
(5)    The amount consists of $313,694 for filing fees and related legal costs incurred in connection with a filing under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (“HSR”), which the Company paid on Mr. Oringer’s behalf, $171,887 payment to cover tax incurred by Mr. Oringer as a result of the HSR payment, and $8,044 in employee benefit premiums. The Compensation Committee approved the payment of the HSR-related expenses because they were incurred in connection with the compliance obligations under the HSR Act resulting from stock-based compensation grants previously made to Mr. Oringer.
(6)    Represents the value of Company-provided group term life insurance premium.
(7)    Mr. Pavlovsky assumed the Chief Executive Officer role effective April 1, 2020.
(8)    Consists of a $9,750 payment for 401(k) matching contributions by the Company, the value of Company-provided group term life insurance premium and mobile phone allowance and fitness expense reimbursement.
(9)    Consists of a $6,231 payment for 401(k) matching contributions by the Company, the value of Company-provided group term life insurance premium and mobile phone allowance.
46

(10)    Mr. Yahes joined the Company in December 2019.
(11)    Consists of a $9,750 payment for 401(k) matching contributions by the Company, the value of Company-provided group term life insurance premium and mobile phone allowance.
(12)    Consists of a $9,750 payment for 401(k) matching contributions by the Company, the value of Company-provided group term life insurance premium, mobile phone allowance and fitness expense reimbursement.
(13)    In connection with his appointment as Interim Chief Financial Officer, Mr. Ciardiello was guaranteed a cash bonus in the amount of $200,000, payable in March 2020.
(14)    Consists of a $9,317 payment for 401(k) matching contributions by the Company and the value of Company-provided group term life insurance.
(15)    Mr. Silvio was appointed an executive officer of the Company in April 2020.
(16)    Consists of a $9,750 payment for 401(k) matching contributions by the Company, the value of Company-provided group term life insurance premium and mobile phone allowance.
(17)    Mr. Muchnick joined the Company on March 16, 2020 and departed the Company on January 11, 2021.
(18)    Consists of $4,616 in severance pay, $8,308 payment for 401(k) matching contributions by the Company, the value of Company-provided group term life insurance premium, and mobile phone allowance.




47

Pay Ratio Disclosure
As required by Section 953(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, and Item 402(u) of Regulation S-K, we are providing the following information about the relationship of the annual total compensation of our employees and the annual total compensation of our CEO. We used the same median associate for 2020 as we did in 2019, as there has been no change in our employee population or employee compensation arrangements that we believe would significantly impact the pay ratio disclosure.
The ratio of the fiscal 2020 total compensation of (i) our CEO, Mr. Pavlovsky, as reported in the Summary Compensation Table, to (ii) our median employee, as computed in the same manner is 48:1 based on the amounts of $7,025,759 to $146,479, respectively.
This pay ratio is a reasonable estimate calculated in a manner consistent with SEC rules based on our records and the methodology described below. Moreover, the SEC rules for identifying the median compensated employee and calculating the pay ratio based on that employee’s annual total compensation allow companies to adopt a variety of methodologies, to apply certain exclusions, and to make reasonable estimates and assumptions that reflect their compensation practices. As such, the pay ratio reported by other companies may not be comparable to the pay ratio reported above, as other companies will have different employment and compensation practices and may utilize different methodologies, exclusions, estimates and assumptions in calculating their own pay ratios.

Identifying the Median Employee

We identified the median employee by examining base salaries as of December 31, 2019 for our global population of approximately 1,129 full-time and part-time employees, other than our CEO, who were employed by us on December 31, 2019. In making this determination, we annualized the salaries of all newly hired permanent employees during this period. We included all employees, whether employed on a full-time, part-time basis or temporary basis (excluding any independent contractors), and did not make any estimates, assumptions or adjustments to any annual base salaries. Base salaries for employees outside of the United States were converted into United States dollars by applying the applicable exchange rates in effect on December 31, 2019. No cost of living adjustments were applied in our methodology.





48

Grants of Plan-Based Awards in 2020
Name Grant
Date
Approval Date(1)
Estimated
Future
Payouts Under
Non-Equity
Incentive
Plan Awards
($)
Target
Estimated
Future
Payouts 
Under
Equity
Incentive
Plan Awards
(#)(2)
All Other
Stock Awards:
Number of
Shares of
Stock or
Units
(#)
All Other
Option Awards:
Number of
Securities
Underlying
Options
(#)
Exercise or
Base Price
of Option
Awards
($/Sh)
Grant Date
Fair Value
of Stock
and Option
Awards
($)(3)

Threshold

Target

Maximum
Jonathan Oringer 4/1/20 2/11/20 —  93,697  124,930  187,394  —  —  —  4,762,332 
Stan Pavlovsky —  — 
700,000(4)
—  —  —  —  —  —  — 
4/1/20 2/11/20 —  93,697  124,930  187,394  —  —  —  4,762,332 
4/1/20 2/11/20 —  —  —  —  27,762 —  —  821,478 
Jarrod Yahes —  —  440,000  —  —  —  —  —  —  — 
1/2/20 1/6/20 —  —  —  —  23,562  —  —  1,006,333 
1/6/20 1/6/20 —  —  —  —  —  53,022  42.96  999,995 
4/1/20 1/6/20 —  5,204  6,940  10,410  —  —  —  264,553 
Steven Ciardiello —  —  187,500  —  —  —  —  —  —  — 
4/1/20 2/24/20 —  —  —  —  6,246  —  —  184,819 
4/1/20 2/24/20 —  9,369  12,493  18,738  —  —  —  476,233 
Peter Silvio —  —  200,000  —  —  —  —  —  —  — 
4/1/20 2/24/20 —  10,410  13,881  20,821  —  —  —  529,144 
Abraham Muchnick —  — 
158,904(14)
—  —  —  —  —  —  — 
4/1/20 2/10/20 —  —  —  —  11,104  —  —  328,567 
4/1/20 2/10/20 —  8,328  11,104  16,656  —  —  —  423,284 

(1)    In accordance with our policy on the timing of equity award grants, unless otherwise specified by our Board of Directors or the Compensation Committee, specifically with respect to newly hired executives and the start date of such executive’s employment with the Company, the effective grant date for all equity awards determined during the course of any calendar month is the first business day following the calendar month in which the grant is approved by our Compensation Committee.
(2)    These figures represent threshold, target and maximum potential future payouts under the PSUs granted to each of our named executive officers in fiscal 2020. The PSUs are eligible to vest based on the achievement of certain performance goals over a three-year performance period of 2020, 2021 and 2022, respectively. Vesting of the PSU award is contingent upon the Company’s achievement of Adjusted EBITDA margin and revenue growth targets, as well as the NEO’s continued employment with the Company at the time of vesting. Each PSU will be settled in shares of the Company’s stock. NEOs do not have voting or dividend rights with respect to unvested PSUs. An NEO is eligible to earn and vest in 0% to 150% of the target number of PSUs, depending on the level of performance achieved. See “Compensation Discussion and Analysis - Section 3 - Elements of 2020 Compensation - Long Term Incentive Compensation” for further information regarding the PSUs.
(3)    Amounts reflect the aggregate grant date fair value computed in accordance with ASC Topic 718. A discussion of the assumptions used in determining grant date fair value may be found in Note 10 to our audited consolidated financial statements included in our 2020 Annual Report. See also our discussion in our 2020 Annual Report of equity-based compensation under “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations-Critical Accounting Policies and Estimates-Equity-Based Compensation.”
(4)    Represents target bonus amount payable under our Short Term Incentive Program. Mr. Pavlovsky’s target bonus amount (as a percentage of annual base salary) is 100% and his employment agreement does not provide for any threshold or maximum value.
(5)    Represents target bonus amount payable under our Short Term Incentive Program. Mr. Yahes’ target bonus amount (as a percentage of annual base salary) is 80% and his employment agreement does not provide for any threshold or maximum value.
49

(6)    Represents target bonus amount payable under our Short Term Incentive Program. Mr. Ciardiello’s target bonus amount (as a percentage of annual base salary) is 50% and his employment agreement does not provide for any threshold or maximum value.
(7)    Represents target bonus amount payable under our Short Term Incentive Program. Mr. Silvio’s target bonus amount (as a percentage of annual base salary) is 50% and his employment agreement does not provide for any threshold or maximum value.
(14)    Prorated based on hire date.
(15)    These RSUs were scheduled to vest annually at 33%, 33% and 34%, beginning April 1, 2021. Mr. Muchnick departed the Company on January 11, 2021. In accordance with the terms of Mr. Muchnick’s separation agreement, Mr. Muchnick forfeited all unvested equity awards.


50

Outstanding Equity Awards at Fiscal Year-End
The following table shows all outstanding equity awards held by each of the named executive officers at December 31, 2020:
  Option Awards Stock Awards
Name Grant Date Number of
Securities
Underlying
Unexercised
Options
(#)
Exercisable
Number of
Securities
Underlying
Unexercised
Options (#)
Unexercisable
Equity
Incentive
Plan
Awards:
Number of
Securities
Underlying
Unexercised
Unearned
Options
(#)
Option
Exercise
Price
($)
Option
Expiration
Date
Number
of
Shares
or
Units of
Stock
That
Have Not
Vested
(#)
Market
Value of
Shares
or
Units of
Stock
That
Have Not
Vested
($)(1)
Equity
Incentive
Plan Awards:
Number of
Unearned
Shares,
Units or
Other
Rights
That
Have Not
Vested
(#)(2)
Equity
Incentive
Plan Awards:
Market
or Payout
Value of
Unearned
Shares,
Units or
Other
Rights
That
Have Not
Vested
($)(1)
Jonathan Oringer 4/24/14 —  — 
527,485(3)
76.73  4/24/24 —  — 
105,497(4)
7,564,135 
3/1/16 263,742  —  —  32.95  3/1/26 —  —  —  — 
4/1/19 —  —  —  —  —  —  —  98,468  7,060,156 
4/1/20 —  —  —  —  —  —  —  124,930  8,957,481 
Stan Pavlovsky 4/1/19 —  —  —  —  — 
10,996(5)
788,413  32,822  2,353,337 
7/1/19 20,775 
62,327(6)
39.07  7/1/29
4/1/20 —  —  —  —  — 
27,762(7)
1,990,535  124,930  8,957,481 
Jarrod Yahes 1/2/20 —  —  —  —  — 
23,562(8)
1,689,395  —  — 
1/6/20 — 
53,022(9)
—  42.96  1/6/30 —  —  —  — 
4/1/20 —  —  —  —  —  —  —  6,940  497,598 
Steven Ciardiello 3/1/18 —  —  —  —  — 
5,159(10)
369,900  —  — 
4/1/19 —  —  —  —  — 
3,299(11)
236,538  4,923  352,979 
7/1/19 —  —  —  —  — 
7,737(12)
554,743 
4/1/20 —  —  —  —  — 
6,246(7)
447,838  12,493 895,748 
Peter Silvio 3/1/18 —  —  —  —  — 
1,559(10)
111,780  —  — 
4/1/19 —  —  —  —  — 
5,470(13)
392,199  —  — 
6/3/19 —  —  —  —  — 
4,119(14)
295,332  —  — 
12/2/19 —  —  —  —  — 
8,298(15)
594,967  —  — 
4/1/20 —  —  —  —  —  —  —  13,881  995,268 
Abraham Muchnick(16)
4/1/20 —  —  —  11,104 796,157  11,104  796,157 

(1)    Assumes a price per share of our Common Stock of $71.70, which represents the closing price per share of our Common Stock on the NYSE on December 31, 2020.
(2)    Except as otherwise set forth for Mr. Oringer, represents the target number of PSUs granted to each of our named executive officers in fiscal 2020. The PSUs are eligible to vest based on the achievement of certain performance goals over a three-year performance period of 2020, 2021 and 2023, respectively. Vesting of the PSU award is contingent upon the Company’s achievement of annual Revenue and Adjusted EBITDA targets, as well as the NEO’s continued employment with the Company at the time of vesting. For PSUs granted in fiscal 2019, unvested awards from prior years may vest cumulatively on the scheduled vesting date for a future year within the three-year vesting period if the target for that year is achieved. An NEO is eligible to earn and vest in 0% to 150% of the target number of PSUs, depending on the level of performance achieved. Given the ability of 2019 PSUs to vest cumulatively as a result of future achievement of PSU targets, amounts have been reported assuming achievement of target performance goals. In 2020, the Compensation Committee certified that the 2019 threshold amount was not achieved and no PSUs were earned for fiscal 2019, however, in 2021, the Compensation Committee certified that the 2020 threshold amount was achieved, therefore those 2019 PSUs awards were paid out in fiscal 2020. See “Compensation Discussion and Analysis - Section 2 - Establishing and Evaluating Executive Compensation - Executive Compensation Philosophy & Objectives - Chief Executive Officer Compensation” and “Compensation Discussion and Analysis - Section 3 - Elements of 2019 Compensation - Long Term Incentive Compensation” for further information regarding the PSUs.
(3)    Mr. Oringer received a grant of 500,000 stock options on April 24, 2014, which vested in full on the fifth anniversary of the date of grant; provided, however, that the option will not be exercisable, in whole or part, unless and until the average closing price for our Common Stock equals or exceeds $161.88 during any 90 consecutive calendar day period occurring between the five year anniversary of the date of grant and the earlier of Mr. Oringer’s termination of service with the Company or April 23, 2024 (the expiration date of the stock options).
(4)    Mr. Oringer received a grant of 100,000 RSUs on April 24, 2014, which is scheduled to vest upon the satisfaction of both of the following requirements: (x) his continued service until the five year anniversary of the date of grant and (y) the average closing price for the
51

Company’s Common Stock equals or exceeds $161.88 during any 90 consecutive calendar day period occurring between the five year anniversary of the date of grant and the earlier of Mr. Oringer’s termination of service with the Company or April 23, 2024, inclusive.
(5)     This RSU vests in three annual installments of 33%, 33% and 34%, respectively, beginning April 1, 2020.
(6)    This option vests in four equal annual installments beginning July 1, 2020.
(7)    This RSU vests in three annual installments of 33.3%, 33.3% and 33.4%, respectively, beginning April 1, 2021.
(8)    This RSU vests in three annual installments of 33%, 33% and 34%, respectively, beginning January 1, 2021.
(9)    This option vests in three annual installments of 33, 33% and 34%, respectively, beginning January 1, 2021.
(10)    This RSU vests in three annual installments of 33%, 33% and 34%, respectively, beginning March 1, 2019.
(11)    This RSU vests in three annual installments of 33%, 33% and 34%, respectively, beginning April 1, 2020.
(12)    This RSU vests in three annual installments of 33%, 33% and 34%, respectively, beginning July 1, 2020.
(13)    This RSU vests in two equal annual installments beginning April 1, 2021.
(14)    This RSU vests in three annual installments of 33%, 33% and 34%, respectively, beginning June 1, 2020.
(15)    This RSU vests in three annual installments of 33%, 33% and 34%, respectively, beginning December 1, 2020.
(16)    Upon separation from the Company in January 2021, Mr. Muchnick forfeited all unvested equity.

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Option Exercises and Stock Vested in 2020
The following table presents information concerning each exercise of stock options and vesting of stock awards during fiscal 2020 for each of our named executive officers.
  Option Awards Stock Awards
Name Number of
Shares
Acquired
on Exercise
(#)
Value Realized
on Exercise
($)(1)
Number of
Shares
Acquired
on Vesting
(#)
Value Realized
on Vesting
($)(2)
Jonathan Oringer —  —  —  — 
Stan Pavlovsky —  — 
5,415(3)
160,230 
Jarrod Yahes —  —  —  — 
Steven Ciardiello —  — 
8,013(4)
285,142 
Peter Silvio —  — 
10,964(5)
543,530 
Abraham Muchnick —  —  —  — 
(1)    The value realized on exercise represents the difference between the market value of our Common Stock at the time the applicable option was exercised and the exercise price of the option.
(2)    Value realized was calculated by multiplying the number of shares that vested by the per share closing price of the Company’s Common Stock on the vesting date. The values do not include the payment of taxes by the NEOs.
(3)     After shares were withheld by the Company to satisfy tax withholding obligations that arose upon the vesting of Mr. Pavlovsky’s restricted stock units, Mr. Pavlovsky received 3,575 shares.
(4)     After shares were withheld by the Company to satisfy tax withholding obligations that arose upon the vesting of Mr. Ciardiello’s restricted stock units, Mr. Ciardiello received 5,169 shares.
(5)     After shares were withheld by the Company to satisfy tax withholding obligations that arose upon the vesting of Mr. Silvio’s restricted stock units, Mr. Silvio received 6,690 shares.




53

Potential Payments Upon Termination or Change in Control
The tables below reflect the amount of compensation that would have been owed to each of our NEOs in the event of employment termination or a termination upon a change of control on December 31, 2020. Mr. Muchnick’s employment with the Company ended in January 2021, therefore, potential payments to Mr. Muchnick upon termination or change in control are not set forth in tabular form below. Instead, actual payments made to Mr. Muchnick in connection with his separation from the Company are described below.

For additional information, see “Employment Agreements and Compensatory Arrangements” above for a more detailed description of potential payments and benefits to our named executive officers upon termination and/or a change of control.  

Regardless of the reason for a named executive officer’s termination of employment, they may be entitled to receive amounts earned during the term of employment. Such amounts include, through the date of termination:

earned but unpaid salary;
benefits;
unreimbursed business expenses; and
the ability to exercise vested stock options for a limited period of time.
    The amounts in the table below were calculated using the following assumptions:
the tables do not include the value of vested but unexercised stock options and vested restricted stock units as of December 31, 2020; and
benefit continuation expense was calculated using the Company’s costs for medical, dental, and life insurance coverage for each named executive officer as in effect on January 1, 2021, except where otherwise specified.
Because the payments to be made to the named executive officers depend on several factors, the actual amounts to be paid out upon a named executive officer’s termination of employment can be determined only at the time of his or her actual separation from the Company.
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Name of Executive
Cause of Termination
Cash
Severance
Payment ($)

Pro-Rata Bonus ($)(1)
Acceleration
of Equity
Awards ($)(2)
Continued
Participation in
Medical &
Dental Benefit
Plans ($)
Outplacement
Benefits ($)
Total ($)
Jonathan Oringer            
Change in Control(3)
—  —  23,581,772  30,319  5,000  23,617,087 
Termination by Company without “cause” —  —  7,615,616  30,316  5,000  7,650,932 
Death or disability —  —  —  —  —  — 
Stan Pavlovsky          
Change in Control(3)
700,000  700,000  16,123,497  26,986  —  17,550,483 
Termination by Company without “cause” 700,000  700,000  6,232,233  26,986  —  7,659,219 
Death or disability —  —  —  —  —  — 
Jarrod Yahes          
Change in Control(3)
550,000  440,000  3,710,846  —  —  4,700,846 
Termination by Company without “cause” 550,000  440,000  1,224,524  —  —  2,214,524 
Death or disability —  —  —  —  —  — 
Steven Ciardiello
Change in Control(3)
375,000  187,500  2,857,747  30,316  —  3,450,563 
Termination by Company without “cause” 375,000  187,500  1,018,068  30,316  —  1,610,884 
Death or disability —  —  —  —  —  — 
Peter Silvio
Change in Control(3)
400,000  200,000  2,389,546  30,151  —  3,019,697 
Termination by Company without “cause” 400,000  200,000  1,074,783  30,151  —  1,704,934 
Death or disability —  —  —  —  —  — 

(1)    Aside from Mr. Oringer, each NEO's employment agreement provides for a pro rata bonus for the year of termination, other than a termination in connection with a change in control, if performance targets are met and bonuses are paid to similarly situated executives, with such bonuses to be paid at the time such other bonuses are paid. Mr. Oringer's Severance and CiC Agreement provides for a bonus payment equal to 100% of his target for the year of termination. Mr. Ciardiello, Mr. Yahes, Mr. Pavlovsky and Mr. Silvio's employment agreements provide for a bonus payment equal to 100% of each of their targets for the year of termination in connection with a change in control.
(2)    Represents the value of unvested equity awards, based on the closing market price of our common stock of $71.70 per share on December 31, 2020, that would vest on an accelerated basis upon the occurrence of certain events. For Mr. Oringer, includes acceleration of vesting for performance-based RSUs assuming target performance was achieved on the assumed date of termination on December 31, 2020 and does not include any amount for acceleration of vesting of performance-based stock options because the exercise price of such stock options was greater than the closing market price of our Common Stock on December 31, 2020. Termination by the Company upon Change in Control, assumes full acceleration of vesting of the 2020 PSUs granted to the NEOs as if target performance was achieved for the three years of the performance period.
(3)    Represents change in control severance benefits based on a double-trigger arrangement, which assumes a “change in control” of the Company followed by the termination by the Company of an NEO without “cause”.

Abraham (Avi) Muchnick, Former Chief Product Officer
In connection with Mr. Muchnick’s termination of employment, the Company entered into a Separation Agreement and General Release with Mr. Muchnick providing that Mr. Muchnick would remain an employee of the Company until January 11, 2021, subject to and in accordance with the terms and conditions of the Separation Agreement and General Release. Pursuant to the Separation Agreement and General Release, the Company and Mr. Muchnick agreed that Mr. Muchnick would commence a period of leave until January 11, 2021. Subject to Mr. Muchnick’s timely execution and non-revocation of, and in accordance with, the terms of the Separation Agreement and General Release, Mr. Muchnick will be entitled to receive (a) severance in an amount equal to three months of Mr. Muchnick’s base salary, paid in accordance with the Company’s normal payroll procedures, and (b) reimbursement for premiums paid for coverage pursuant to COBRA for Mr. Muchnick and his eligible dependents for up to approximately three months following the separation date. Mr. Muchnick’s receipt of severance payments or benefits pursuant to the Separation Agreement and General Release is also subject to Mr. Muchnick’s compliance with certain with restrictive covenants. In accordance with his employment agreement, for the 12-month period following termination of his employment, Mr.
55

Muchnick is restricted from (i) soliciting or hiring employees or customers; (ii) competing against the Company; and (iii) disparaging the Company. Mr. Muchnick is also restricted from disclosing confidential information at any time.

56

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Review, Approval or Ratification of Related Person Transactions
The Audit Committee is responsible for the review, approval, or ratification of “related person transactions” between the Company or its subsidiaries and related persons. Under SEC rules, a related person is a director, nominee for director or executive officer since the beginning of the last fiscal year, or a more than five percent stockholder, and their immediate family members. These transactions may include employment or consulting relationships with a related person or contracts under which we receive goods or services from (or provide goods and services to) a related person or a company for which the related person is an employee or otherwise affiliated. The Board has adopted written policies and procedures that apply to any transaction or series of transactions in which we or one of our subsidiaries is a participant and a related person has a direct or indirect material interest. Generally for a transaction to be approved, the Audit Committee must be informed or have knowledge of (i) the related person’s relationship to the Company and interest in the transaction; (ii) the material facts of the proposed transaction, including a description of the nature and potential aggregate value of the proposed transaction; (iii) the benefits, if any, to the Company of the proposed transaction; (iv) if applicable, the availability of other sources of comparable products or services; and (v) an assessment of whether the proposed transaction or situation is on terms that are comparable to the terms available to an unrelated third party or to employees generally.
Transactions with Related Persons
Since January 1, 2020, there has not been, nor is there currently proposed, any transaction or series of similar transactions to which we have been or will be a party and in which:
the amounts involved exceeded or will exceed $120,000; and
a director, nominee for director, executive officer, beneficial holder of more than 5% of our capital stock or any member of their immediate family had or will have a direct or indirect material interest.
Indemnification of our Directors and Officers
Our Charter contains provisions that limit the liability of our directors for monetary damages to the fullest extent permitted by Delaware law. Consequently, our directors will not be personally liable to us or our stockholders for monetary damages for any breach of fiduciary duties as directors, except liability for: (1) any breach of the director’s duty of loyalty to us or our stockholders; (2) any act or omission not in good faith or that involves intentional misconduct or a knowing violation of law; (3) unlawful payments of dividends or unlawful stock repurchases or redemptions as provided in Section 174 of the Delaware General Corporation Law; or (4) any transaction from which the director derived an improper personal benefit.
Our Charter and Bylaws provide that we are required to indemnify our directors and officers, in each case to the fullest extent permitted by Delaware law. Our Bylaws also provide that we are obligated to advance expenses incurred by a director or officer in advance of the final disposition of any action or proceeding, and permit us to secure insurance on behalf of any officer, director, employee or other agent for any liability arising out of his or her actions in that capacity regardless of whether we would otherwise be permitted to indemnify him or her under the provisions of Delaware law. We have entered into agreements to indemnify our directors, executive officers and other employees as determined by our Board. With specified exceptions, these agreements provide for indemnification for related expenses including, among other things, attorneys’ fees, judgments, fines and settlement amounts incurred by any of these individuals in any action or proceeding. We believe that these Bylaw provisions and indemnification agreements are necessary to attract and retain qualified persons as directors and officers. We also maintain directors’ and officers’ liability insurance.

57

PROPOSAL THREE
RATIFICATION OF THE APPOINTMENT OF OUR INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Selection of the Accounting Firm
The Audit Committee has appointed PricewaterhouseCoopers LLP (“PricewaterhouseCoopers”) as our independent registered public accounting firm to perform the audit of our financial statements for fiscal 2021, and we are asking our stockholders to ratify this appointment. PricewaterhouseCoopers has been our independent registered public accounting firm since September 2011.
The Audit Committee annually reviews the independent registered public accounting firm’s independence, including reviewing all relationships between the independent registered public accounting firm and us and any disclosed relationships or services that may impact the objectivity and independence of the independent registered public accounting firm, and the independent registered public accounting firm’s performance. The Audit Committee also reviews the performance of the independent registered public accounting firm annually.
As a matter of good corporate governance, the Board, upon recommendation of the Audit Committee, has determined to submit to stockholders for ratification the appointment of PricewaterhouseCoopers. In the event that a majority of the shares of Common Stock represented by proxy or by attending the 2021 Annual Meeting and entitled to vote on Proposal Three does not ratify this appointment of PricewaterhouseCoopers, the Audit Committee may reconsider the appointment of PricewaterhouseCoopers.
We expect that a representative of PricewaterhouseCoopers will be present at the 2021 Annual Meeting and will have an opportunity to make a statement if he or she desires and will be available to respond to appropriate questions.
OUR BOARD UNANIMOUSLY RECOMMENDS A VOTE “FOR” THE RATIFICATION OF PRICEWATERHOUSECOOPERS LLP AS OUR INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FOR FISCAL 2021.
Policy on Audit Committee Pre-Approval of Audit and Permissible Non-Audit Services of Independent Registered Public Accounting Firm
The Audit Committee has adopted policies and procedures for the pre-approval of audit and non-audit services for the purpose of maintaining the independence of our independent registered public accounting firm. We may not engage our independent registered public accounting firm to render any audit or non-audit service unless either the service is approved in advance by the Audit Committee, or the engagement to render the service is entered into pursuant to the Audit Committee’s pre-approval policies and procedures. Notwithstanding the foregoing, pre-approval is not required with respect to the provision of services, other than audit, review or attest services, by the independent registered public accounting firm if the aggregate amount of all such services is no more than 5% of the total amount paid by us to the independent auditor during the fiscal year in which the services are provided, such services were not recognized by us at the time of the engagement to be non-audit services and such services are promptly brought to the attention of the Audit Committee and approved prior to completion of the audit by the Audit Committee or by the Chairman of the Audit Committee.
From time to time, our Audit Committee may pre-approve services that are expected to be provided to us by the independent registered public accounting firm during the following 12 months. At the time such pre-approval is granted, the Audit Committee must identify the particular pre-approved services in a sufficient level of detail so that our management will not be called upon to make a judgment as to whether a proposed service fits within the pre-approved services and, at each regularly scheduled meeting of the Audit Committee following such approval, management or the independent registered public accounting firm shall report to the Audit Committee regarding each service actually provided to us pursuant to such pre-approval.
The Audit Committee has delegated to its chairman the authority to grant pre-approvals of audit or non-audit services to be provided by the independent registered public accounting firm. Any approval of services by the chairman of the Audit Committee is reported to the Audit Committee at its next regularly scheduled meeting.
58


Principal Accountant Fees and Services
The following is a summary of the fees billed to us by PricewaterhouseCoopers for professional services rendered for the fiscal years ended December 31, 2020 and December 31, 2019:
Fee Category
Fiscal
2020
Fiscal
2019
Audit Fees $ 2,020,000  $ 2,583,000 
Audit-Related Fees 200,000  — 
Tax Fees 158,700  130,291 
All Other Fees 3,870  3,870 
Total Fees $ 2,382,570  $ 2,717,161 
Audit Fees. Audit fees consist of fees billed for professional services rendered for the annual audit of our consolidated financial statements presented in our annual report on Form 10-K, the audit of internal controls over financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act of 2002 and the review of the interim consolidated financial statements presented in our quarterly reports on Form 10-Q.
Audit-Related Fees. Audit-related fees for the year ended December 31, 2020, include fees billed by PricewaterhouseCoopers related to a registration statement associated with a stock offering. For the year ended December 31, 2019, there were no fees billed by PricewaterhouseCoopers for audit-related services.
Tax Fees. Tax fees for the years ended December 31, 2020 and December 31, 2019 include fees billed by PricewaterhouseCoopers related to tax compliance and consulting services.
All Other Fees. For the years ended December 31, 2020 and December 31, 2019, all other fees consisted of fees related to a certain accounting research software product.
The Audit Committee determined that PricewaterhouseCoopers’s provision of these services, and the fees that we paid for these services, are compatible with maintaining the independence of the independent registered public accounting firm. The Audit Committee approved all services that PricewaterhouseCoopers provided in the fiscal years ended December 31, 2020 and 2019.
59

AUDIT COMMITTEE REPORT
The Audit Committee consists of the four directors whose names appear below. Each member of the Audit Committee meets the definition of “independent director” and otherwise is qualified to be a member of the Audit Committee under the NYSE listing requirements.
The Audit Committee’s general role is to assist the Board in monitoring the Company’s financial reporting process and related matters. Its specific responsibilities are set forth in its charter. The Audit Committee reviews its charter at least annually.
As required by its charter, the Audit Committee reviewed the Company’s audited financial statements for the fiscal year ended December 31, 2020, or fiscal 2020, and met with management, as well as with representatives of PricewaterhouseCoopers, the Company’s independent registered public accounting firm, to discuss the audited financial statements. The Audit Committee also discussed with members of PricewaterhouseCoopers the matters required to be discussed by the Statement on Auditing Standards 16, Communication with Audit Committees, as adopted by the Public Company Accounting Oversight Board, or PCAOB.
In addition, the Audit Committee received the written disclosures and letter from PricewaterhouseCoopers required by the applicable requirements of the PCAOB regarding PricewaterhouseCoopers’s communications with the Audit Committee concerning independence and discussed with members of PricewaterhouseCoopers its independence from management and the Company.
Furthermore, in connection with the standards for independence promulgated by the SEC, the Audit Committee reviewed the services provided by PricewaterhouseCoopers, the fees the Company paid for these services, and whether the provision of the services is compatible with maintaining the independence of the independent registered public accounting firm. The Audit Committee deemed that the provision of the services is compatible with maintaining that independence.
Based on the review and discussions described above, the Audit Committee recommended to the Board that the Company’s audited financial statements for fiscal 2020 be included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020.
Members of the Shutterstock, Inc. Audit Committee

Alfonse Upshaw (Chairman)
Jeff Epstein
Thomas R. Evans
Paul J. Hennessy

The Audit Committee report above does not constitute “soliciting material” and will not be deemed “filed” or incorporated by reference into any of our filings under the Securities Act or the Exchange Act that might incorporate our SEC filings by reference, in whole or in part, notwithstanding anything to the contrary set forth in those filings.

60

EQUITY COMPENSATION PLAN INFORMATION
The following table provides information as of December 31, 2020 about the securities authorized for issuance under our Amended and Restated 2012 Plan and our 2012 Employee Stock Purchase Plan (the “2012 ESPP”). Each of the Amended and Restated 2012 Plan and the 2012 ESPP was adopted with the approval of our stockholders. In December 2016, the Board determined to suspend the 2012 ESPP unless and until the Board deems it is appropriate, in its sole discretion, to reinstate the plan.
Plan Category
Number of securities to be
issued upon exercise of
outstanding options,
warrants and rights
(a)
Weighted-average
exercise price of
outstanding options,
warrants and rights
(b)
Number of securities
remaining available for
issuance under equity
compensation plans
(excluding securities
reflected in column (a))
(c)
Equity compensation plans approved by security holders
2,429,278(1)
57.90(2)
14,541,663(3)
Equity compensation plans not approved by security holders —  —  — 
Total
2,429,278(1)
57.90(2)
14,541,663(3)
—  —  — 
(1) Consists of 977,033 shares of our Common Stock to be issued upon the exercise of outstanding stock options under the Amended and Restated 2012 Plan and 1,452,245 shares of our Common Stock to be issued upon the vesting of RSUs and PSUs granted under the Amended and Restated 2012 Plan.
(2) Weighted-average exercise price relates to outstanding stock options. RSUs are deemed to have an exercise price of zero and are excluded from the calculation.
(3) The number of shares available for issuance under the Amended and Restated 2012 Plan will increase automatically annually commencing January 1, 2013 by an amount equal to the least of (a) 1,500,000 shares of Common Stock, (b) 3% of the outstanding shares of Common Stock as of the last day of the immediately preceding fiscal year, and (c) or such other amount as determined by the Board. On January 1, 2020, the shares available for issuance under the Amended and Restated 2012 Plan increased by 1,064,901 shares. The number of shares available for issuance under the 2012 ESPP will increase automatically each year commencing January 1, 2013 by an amount equal to the lesser of 1,000,000 shares of Common Stock, 3% of the outstanding shares of our Common Stock as of the last day of the immediately preceding fiscal year, or such other amount as determined by the Company’s board of directors. On January 1, 2016, the shares available for issuance under the 2012 ESPP increased by 1,000,000 shares. Since December 2016, the Company has not increased the number of shares available for issuance under the 2012 ESPP in accordance with the Board’s determination to suspend the employee stock purchase plan.



61

OTHER MATTERS
The Board knows of no other matters that will be presented for consideration at the 2021 Annual Meeting. If any other matters are properly brought before the meeting, it is the intention of the persons named in the accompanying proxy to vote on such matters in accordance with their best judgment.
By Order of the Board of Directors,
 
JLAPHAMSIGNATURE2A.JPG
John Lapham
General Counsel and Corporate Secretary
April 22, 2021
62


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