Pinterest, Inc. (NYSE:PINS), a $20.8 billion social media company with strong revenue growth of 17.7% over the last twelve months, has granted its Chief Executive Officer, Bill Ready, performance-based restricted stock units (PSUs) valued at a target of $18 million.
According to InvestingPro analysis, Pinterest maintains robust financial health with a 'GOOD' overall rating. Announced on Sunday, the award aims to align the CEO's incentives with long-term shareholder value creation.
The PSU award, decided by Pinterest's Talent Development and Compensation Committee on January 6, 2025, comprises 572,884 PSUs at the target performance level. The final number of PSUs earned by Mr. Ready could range from 0% to 200% of the target, contingent on Pinterest's total shareholder return relative to its peers in the Nasdaq CTA Internet Index over a three-year period stretching from January 1, 2025, to December 31, 2027. With a current gross profit margin of 78.9% and strong cash position, the company shows solid operational efficiency.
Vesting of the PSUs is tied to Mr. Ready's continued service through the end of the performance period, with specific details governed by the terms of the Pinterest 2019 Omnibus Incentive Plan and the PSU award agreement. This agreement will be included in Pinterest's Annual Report on Form 10-K for the fiscal year ended December 31, 2024.
This move reflects a strategic effort by Pinterest to ensure that its executive compensation is closely connected to the company's performance, particularly in the context of the competitive technology sector. The information is based on a press release statement filed with the Securities and Exchange Commission.
Pinterest, headquartered in San Francisco, California, is incorporated in Delaware and operates within the computer programming and data processing industry under the SIC code 7370. The company's fiscal year concludes on December 31. For a comprehensive analysis of Pinterest's executive compensation structure and detailed financial metrics, access the full Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert insights and actionable intelligence.
In other recent news, Pinterest Inc (NYSE:PINS). has been the subject of several significant financial adjustments. Monness, Crespi, Hardt analysts upgraded Pinterest's stock rating from Neutral to Buy, setting a new price target of $40. The company has also announced a $2 billion stock repurchase program, and reported a revenue growth of 17.7% in the last twelve months. BofA Securities maintained a Buy rating on Pinterest with a steady price target of $39, despite reducing its revenue forecast for 2025 to $4.1 billion and its EBITDA estimate to $1.18 billion.
Evercore ISI adjusted its price target for Pinterest to $43, maintaining an Outperform rating. The firm also revised its full-year 2025 revenue and EBITDA estimates for Pinterest downward by 3%. Piper Sandler downgraded Pinterest's stock from Overweight to Neutral, reducing the price target to $36 due to mixed financial results and cautious growth projections.
In addition, Pinterest has made an amendment to its corporate structure, changing its registered agent and office in the state of Delaware. This move is seen as an internal administrative decision rather than a significant business development.
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