| UNITED STATES | ||||||||||||||
| SECURITIES AND EXCHANGE COMMISSION | ||||||||||||||
| Washington, DC 20549 | ||||||||||||||
| SCHEDULE 14A INFORMATION | ||||||||||||||
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Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934
(Amendment No. )
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Filed by the Registrant
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☑ |
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Filed by a Party other than the Registrant
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☐ | |||||||||||||||||||||
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Check the appropriate box:
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| ☐ |
Preliminary Proxy Statement
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| ☐ |
Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
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| ☑ |
Definitive Proxy Statement
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| ☐ |
Definitive Additional Materials
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| ☐ |
Soliciting Material Pursuant to §240.14a-12
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MARKETWISE, INC.
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(Name of Registrant as Specified in its Charter)
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Name of Person(s) Filing Proxy Statement, if Other Than the Registrant)
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Payment of Filing Fee (Check all boxes that apply):
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| ☑ |
No fee required.
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| ☐ |
Fee paid previously with preliminary materials.
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| ☐ |
Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11.
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MarketWise, Inc.
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NOTICE & PROXY STATEMENT
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Annual Meeting of Stockholders
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June 6, 2024
10:00 a.m. (Eastern Time)
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Notice of Annual Meeting of Stockholders
To be Held on June 6, 2024 |
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MARKETWISE, INC.
1125 N. Charles Street, Baltimore, MD 21201
1125 N. Charles Street, Baltimore, MD 21201
Dear Stockholder:
You are cordially invited to attend the 2024 Annual Meeting of Stockholders (the “Annual Meeting”) of MarketWise, Inc., a Delaware corporation (the “Company”). The Annual Meeting will be a completely virtual meeting conducted via live webcast at 10:00 a.m. Eastern time on June 6, 2024. You may attend the Annual Meeting online by visiting
www.virtualshareholdermeeting.com/MKTW2024
. The Annual Meeting will be held for the following purposes:
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| 1 |
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To elect four Class III Directors to serve until the 2027 Annual Meeting of Stockholders
and u
ntil their respective successors shall have been duly elected and qualified;
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2
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To ratify the appointment of Deloitte & Touche LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2024; and
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3
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To transact such other business as may properly come before the Annual Meeting or any continuation, postponement or adjournment of the Annual Meeting.
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CONTENTS
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Forward Looking Statements
Certain statements herein constitute forward-looking statements within the meaning of federal securities law, and as such are not historical facts. This includes, without limitation, statements regarding our financial position and business strategy, and the plans and objectives of management for our future operations. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. When used in this report, words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “strive,” “would,” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections, and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this report.
These forward-looking statements are based on information available as of the date of this report and current expectations, forecasts, and assumptions, and involve a number of judgments, risks, and uncertainties. Additionally, as a result of a number of known and unknown risks and uncertainties, our actual results or performance may be materially different from those expressed or implied by these forward-looking statements. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements for any reason, except as may be required under applicable securities laws.
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PROXY STATEMENT
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MARKETWISE, INC.
1125 N. Charles Street, Baltimore, MD 21201 |
||
This proxy statement is furnished in connection with the solicitation by your Board of Directors of MarketWise, Inc. of proxies to be voted at our Annual Meeting of Stockholders to be held at 10:00 a.m. Eastern Time on June 6, 2024 (the “Annual Meeting”), and at any continuation, postponement or adjournment of the Annual Meeting. The Annual Meeting will be a completely virtual meeting, which will be conducted via live webcast. You will be able to attend the Annual Meeting, vote your shares electronically and submit your questions during the meeting by visiting
www.virtualshareholdermeeting.com/MKTW2024
. Instruction regarding how you can vote are included in your Notice of Internet Availability of Proxy Materials, on your proxy card or on the instructions that accompanied your proxy materials.
Holders of record of outstanding shares of capital stock, composed of Class A common stock, par value $0.0001 per share (the “Class A common stock”) and Class B common stock, par value $0.0001 (the “Class B common stock” and, together with the Class A common stock, “Common Stock”), at the close of business on April 12, 2024 (the “Record Date”), will be entitled to notice of and to vote at the Annual Meeting and any continuation, postponement or adjournment of the Annual Meeting, and will vote together as a single class on all matters presented at the Annual Meeting. As of the Record Date, there were 43,173,283 shares of Class A common stock and 287,592,303 shares of Class B common stock issued and outstanding and entitled to vote at the Annual Meeting, representing 13.1%, and 86.9% combined voting power of our Common Stock, respectively. Each outstanding share of our Common Stock entitles its holder to one vote per share on all matters to be presented to our stockholders.
This proxy statement will be released on or about April 26, 2024 to our stockholders as of the Record Date.
In this proxy statement, “we,” “us,” “our,” the “Company” and “MarketWise” refer to MarketWise, Inc., and, unless otherwise stated, all of its subsidiaries.
IMPORTANT NOTICE REGARDING THE AVAILABILITY OF PROXY MATERIALS FOR THE STOCKHOLDER MEETING TO BE HELD ON THURSDAY, JUNE 6, 2024.
This Proxy Statement and our 2023 Annual Report to Stockholders are available at
www.investors.marketwise.com
.
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PROPOSALS
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At the Annual Meeting, our stockholders will be asked:
| 1 |
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To elect four Class III Directors to serve until the 2027 Annual Meeting of Stockholders
and u
ntil their respective successors shall have been duly elected and qualified;
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2
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To ratify the appointment of Deloitte & Touche LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2024; and
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3
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To transact such other business as may properly come before the Annual Meeting or any continuation, postponement or adjournment of the Annual Meeting.
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RECOMMENDATIONS OF THE BOARD
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The Board of Directors (the “Board”) recommends that you vote your shares as indicated below. If you return a properly completed proxy card, or vote your shares by telephone or Internet, your shares of Common Stock will be voted on your behalf as you direct. If not otherwise specified, the shares of Common Stock represented by the proxies will be voted, and the Board unanimously recommends that you vote as follows:
|
u
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FOR the election of four Directors, F. Porter Stansberry, Michael Palmer, Glenn Tongue, and Matthew Smith; and
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v
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FOR the ratification of the appointment of Deloitte & Touche LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2024.
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1
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INFORMATION ABOUT THIS PROXY STATEMENT
|
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Why you received this proxy statement
. You are viewing or have received these proxy materials because MarketWise’s Board is soliciting your proxy to vote your shares at the Annual Meeting. This proxy statement includes information that we are required to provide to you under the rules of the Securities and Exchange Commission (the “SEC”) and will help you make an informed decision when voting your shares.
Notice of Internet Availability of Proxy Materials.
As permitted by SEC rules, MarketWise is making this proxy statement and its 2023 Annual Report available to its stockholders electronically via the Internet. On or about April 26, 2024, we mailed to our stockholders a Notice of Internet Availability of Proxy Materials (the “Internet Notice”) containing instructions on how to access this proxy statement and our 2023 Annual Report and vote online. If you received an Internet Notice by mail, you will not receive a printed copy of the proxy materials in the mail unless you specifically request them. Instead, the Internet Notice instructs you on how to access and review all of the important information contained in the proxy statement and 2023 Annual Report. The Internet Notice also instructs you on how you may submit your proxy over the Internet. If you received an Internet Notice by mail and would like to receive a printed copy of our proxy materials, you should follow the instructions for requesting such materials contained on the Internet Notice.
Printed Copies of Our Proxy Materials
. If you received printed copies of our proxy materials, then instructions regarding how you can vote are contained on the proxy card included in the materials.
Householding.
The SEC’s rules permit us to deliver a single set of proxy materials to one address shared by two or more of our stockholders. This delivery method is referred to as “householding” and can result in significant cost savings. To take advantage of this opportunity, we have delivered only one set of proxy materials to multiple stockholders who share an address, unless we received contrary instructions from the impacted stockholders prior to the mailing date. We agree to deliver promptly, upon written or oral request, a separate copy of the proxy materials, as requested, to any stockholder at the shared address to which a single copy of those documents was delivered. If you prefer to receive separate copies of the proxy materials, contact Broadridge Financial Solutions, Inc. (“Broadridge”) at 1-866-540-7095 or in writing at Broadridge, Householding Department, 51 Mercedes Way, Edgewood, NY 11717.
If you are currently a stockholder sharing an address with another stockholder and wish to receive only one copy of future proxy materials for your household, please contact Broadridge at the above phone number or address.
2
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QUESTIONS AND ANSWERS ABOUT THE 2024 ANNUAL MEETING OF STOCKHOLDERS
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WHO IS ENTITLED TO VOTE AT THE ANNUAL MEETING?
|
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The Record Date for the Annual Meeting was April 12, 2024. You are entitled to vote at the Annual Meeting only if you were a holder of record at the close of business on that date, or if you hold a valid proxy for the Annual Meeting. You will need to obtain your own Internet access if you choose to attend the Annual Meeting online and/or vote your shares electronically. Each outstanding share of our Common Stock entitles its holder to one vote per share on all matters presented to our stockholders generally. At the close of business on the Record Date, there were 330,765,586 shares of Common Stock outstanding and entitled to vote at the Annual Meeting.
|
WHAT IS THE DIFFERENCE BETWEEN BEING A "RECORD HOLDER" AND HOLDING SHARES IN "STREET NAME"?
|
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A record holder holds shares in his or her name. Shares held in “street name” means shares that are held in the name of a bank or broker on a person’s behalf.
|
AM I ENTITLED TO VOTE IF MY SHARES ARE HELD IN “STREET NAME”?
|
||
Yes. If your shares are held by a bank or a brokerage firm, you are considered the “beneficial owner” of those shares held in "street name." If your shares are held in street name, our proxy materials are being provided to you by your bank or brokerage firm, along with a voting instruction card if you received printed copies of our proxy materials. As the beneficial owner, you have the right to direct your bank or brokerage firm how to vote your shares, and the bank or brokerage firm is required to vote your shares in accordance with your instructions. If your shares are held in street name, you may not vote your shares online at the Annual Meeting, unless you obtain a legal proxy from your bank or brokerage firm.
|
HOW MANY SHARES MUST BE PRESENT TO HOLD THE ANNUAL MEETING?
|
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A quorum must be present at the Annual Meeting for any business to be conducted. The presence at the Annual Meeting, online or by proxy, of the holders of a majority in voting power of Common Stock issued and outstanding and entitled to vote on the Record Date will constitute a quorum.
|
WHO CAN ATTEND THE 2024 ANNUAL MEETING OF STOCKHOLDERS?
|
||
You may attend the Annual Meeting only if you are a MarketWise stockholder who is entitled to vote at the Annual Meeting, or if you hold a valid proxy for the Annual Meeting. The Annual Meeting will be held entirely online to allow for greater participation. You will be able to attend the Annual Meeting and submit your questions by visiting the following website:
www.virtualshareholdermeeting.com/MKTW2024
. You will also be able to vote your shares electronically at the Annual Meeting.
To attend and participate in the Annual Meeting, you will need the 16-digit control number included in your Internet Notice. The meeting webcast will begin promptly at 10:00 a.m. Eastern Time on June 6, 2024. We encourage you to access the meeting prior to the start time. Online check-in will begin at 9:45 a.m. Eastern Time, and you should allow ample time for the check-in procedures. If you hold your shares through a bank or broker, instructions should also be provided on the voting instruction card provided by your bank or brokerage firm.
|
WHY A VIRTUAL MEETING?
|
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We are excited to embrace the latest technology to provide expanded access, and improve communication and cost savings for us and our stockholders. We believe the virtual meeting will enable increased stockholder attendance and participation since stockholders can participate from any location around the world. Furthermore, as part of our effort to maintain a safe and healthy environment for our directors, members of management and stockholders who wish to attend the Annual Meeting, we believe that hosting a virtual meeting is in the best interests of the Company and such attendees of the Annual Meeting.
|
WHAT IF DURING THE CHECK-IN TIME OR DURING THE ANNUAL MEETING I HAVE TECHNICAL DIFFICULTIES OR TROUBLE ACCESSING THE VIRTUAL MEETING WEBSITE?
|
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We encourage you to access the Annual Meeting approximately 15 minutes in advance to allow ample time for you to log in to the meeting and test your computer audio system. We recommend that you carefully review the above procedures needed to gain admission in advance. Technicians will be ready to assist you with any technical difficulties you may have accessing the virtual meeting. If you encounter any difficulties accessing the virtual meeting during check-in or during the meeting, please call the technical support number that will be posted on the meeting login page at
www.virtualshareholdermeeting.com/MKTW2024
.
3
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WHAT IF A QUORUM IS NOT PRESENT AT THE ANNUAL MEETING?
|
||
If a quorum is not present at the scheduled time of the Annual Meeting, (i) the chairman of the Annual Meeting or (ii) a majority in voting power of the stockholders entitled to vote at the Annual Meeting, present electronically or represented by proxy, may adjourn the Annual Meeting until a quorum is present or represented.
|
WHAT DOES IT MEAN IF I RECEIVE MORE THAN ONE INTERNET NOTICE OR SET OF PROXY MATERIALS?
|
||
It means that your shares are held in more than one account at the transfer agent and/or with banks or brokers. To ensure that all of your shares are voted, for each Internet Notice or set of proxy materials, please submit your proxy by phone, via the Internet, or, if you received printed copies of the proxy materials, by signing, dating and returning the enclosed proxy card in the enclosed envelope.
|
HOW DO I VOTE?
|
||
We recommend that stockholders vote by proxy even if they plan to participate in the Annual Meeting and vote electronically during the meeting. If you are a stockholder of record, there are three ways to vote by proxy:
▪
by Internet—You can vote at
www.proxyvote.com
by following the instructions on your Internet Notice or proxy card.
▪
by Telephone—You can vote by calling 1-800-690-6903 and following the instructions on your proxy card.
▪
by Mail—You can vote by mail by signing, dating and mailing the proxy card, which you may request to receive by mail.
Internet and telephone 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 5, 2024. Stockholders may participate in the Annual Meeting by visiting the website
www.virtualshareholdermeeting.com/MKTW2024
that is included on your Internet Notice, proxy card or in the instructions that accompanied your proxy materials. The Annual Meeting webcast will begin promptly at 10:00 a.m. Eastern Time on June 6, 2024.
Whether or not you expect to attend the Annual Meeting online, we urge you to vote your shares as promptly as possible to ensure your representation and the presence of a quorum at the Annual Meeting. If you submit your proxy, you may still decide to attend the Annual Meeting online and vote your shares electronically.
If your shares are held in “street name” through a bank or broker, you will receive instructions on how to vote from the bank or broker. You must follow their instructions in order for your shares to be voted. Internet and telephone voting may also be offered to stockholders owning shares through certain banks and brokers. If your shares are not registered in your own name and you would like to vote your shares at the Annual Meeting, you may register to participate and enter the appropriate password included in the voting instruction card provided to you by your bank or brokerage firm. If you hold your shares in street name and you do not receive an appropriate password, you may need to log in to your bank or brokerage firm’s website and select the shareholder communications mailbox to access the meeting and vote. Instructions should also be provided on the voting instruction card provided by your bank or brokerage firm.
|
CAN I CHANGE MY VOTE AFTER I SUBMIT MY PROXY?
|
||
Yes.
If you are a registered stockholder, you may revoke your proxy and change your vote:
▪
by submitting a duly executed proxy card bearing a later date;
▪
by granting a subsequent proxy through the Internet or telephone;
▪
by giving written notice of revocation to the Corporate Secretary of MarketWise prior to the Annual Meeting; or
▪
by voting electronically at the Annual Meeting.
Your most recent proxy, whether submitted via the Internet, by telephone, or by mail, is the one that is counted. Your virtual attendance at the Annual Meeting by itself will not revoke your proxy unless you give written notice of revocation to the Corporate Secretary before your proxy is voted or you vote electronically during the Annual Meeting.
If your shares are held in street name, you may change or revoke your voting instructions by following the specific directions provided to you by your bank or broker, or you may vote electronically during the Annual Meeting.
4
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WHO WILL COUNT THE VOTES?
|
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A representative from Broadridge Financial Solutions, Inc., our inspector of election, will tabulate and certify the votes.
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WHAT IF I DO NOT SPECIFY HOW MY SHARES ARE TO BE VOTED?
|
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If you submit a proxy but do not indicate any voting instructions, the persons named as proxies will vote in accordance with the recommendations of the Board. The Board’s recommendations are indicated on page
1
of this proxy statement, as well as with the description of each proposal in this proxy statement.
|
WILL ANY OTHER BUSINESS BE CONDUCTED AT THE ANNUAL MEETING?
|
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We know of no other business that will be presented at the Annual Meeting. If any other matter properly comes before the stockholders for a vote at the Annual Meeting, however, the proxy holders named on the Company’s proxy card will vote your shares in accordance with their best judgment.
|
WILL THERE BE A QUESTION AND ANSWER SESSION DURING THE ANNUAL MEETING?
|
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As part of the Annual Meeting, we will hold a live Q&A session, during which we intend to answer questions submitted online during the meeting that are pertinent to the Company and the meeting matters, as time permits. Only stockholders that have accessed the Annual Meeting as a stockholder (rather than as a “Guest”) by following the procedures outlined above in “Who can attend the Annual Meeting?” will be permitted to submit questions during the Annual Meeting. Each stockholder is limited to no more than two questions. Questions should be succinct and only cover a single topic. We will not address questions that are, among other things:
▪
irrelevant to the business of the Company or to the business of the Annual Meeting;
▪
related to material non-public information of the Company, including the status or results of our business since our last Quarterly Report on Form 10-Q;
▪
related to any pending, threatened or ongoing litigation;
▪
related to personal grievances;
▪
derogatory references to individuals or that are otherwise in bad taste;
▪
substantially repetitious of questions already made by another stockholder;
▪
in excess of the two question limit;
▪
in furtherance of the stockholder’s personal or business interests; or
▪
out of order or not otherwise suitable for the conduct of the Annual Meeting as determined by the Chair or Corporate Secretary in their reasonable judgment.
Additional information regarding the Q&A session will be available in the “Rules of Conduct” available on the Annual Meeting webpage for stockholders that have accessed the Annual Meeting as a stockholder (rather than a “Guest”) by following the procedures outlined above in “Who can attend the Annual Meeting?”
5
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HOW MANY VOTES ARE REQUIRED FOR THE APPROVAL OF THE PROPOSALS TO BE VOTED UPON AND HOW WILL ABSTENTIONS AND BROKER NON-VOTES BE TREATED?
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Proposal
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Votes required
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Effect of Votes Withheld / Abstentions
and Broker Non-Votes |
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Proposal 1
: Election of Directors
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The plurality of the votes cast. This means that the four (4) nominees receiving the highest number of affirmative "FOR" votes will be elected as Directors.
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Votes withheld and broker non-votes will not be counted and will have no effect.
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Proposal 2
: Ratification of Appointment of Independent Registered Public Accounting Firm
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The affirmative vote of the holders of a majority in voting power of the votes cast.
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Abstentions and broker non-votes will not be counted and will have no effect.
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WHAT IS AN ABSTENTION AND HOW WILL VOTES WITHHELD AND ABSTENTIONS BE TREATED?
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A
“
vote withheld,” in the case of the proposal regarding the election of directors, or an
“
abstention,” in the case of the proposal regarding the ratification of Deloitte & Touche LLP as our independent registered public accounting firm, represents a stockholder’s affirmative choice to decline to vote on a proposal. Votes withheld and abstentions are counted as present and entitled to vote for purposes of determining a quorum. Votes withheld have no effect on the election of directors. Abstentions have no effect on the ratification of the appointment of Deloitte & Touche LLP.
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WHAT ARE BROKER NON-VOTES AND DO THEY COUNT FOR DETERMINING A QUORUM?
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Generally, broker non-votes occur when shares held by a broker in
“
street name” for a beneficial owner are not voted with respect to a particular proposal because the broker (1) has not received voting instructions from the beneficial owner and (2) lacks discretionary voting power to vote those shares. A broker is entitled to vote shares held for a beneficial owner on routine matters, such as the ratification of the appointment of Deloitte & Touche LLP as our independent registered public accounting firm, without instructions from the beneficial owner of those shares. On the other hand, absent instructions from the beneficial owner of such shares, a broker is not entitled to vote shares held for a beneficial owner on non-routine matters, such as the election of directors. Broker non-votes count for purposes of determining whether a quorum is present.
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WHERE CAN I FIND THE VOTING RESULTS OF THE 2024 ANNUAL MEETING OF STOCKHOLDERS?
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We plan to announce preliminary voting results at the Annual Meeting and we will report the final results in a Current Report on Form 8-K, which we intend to file with the SEC shortly after the Annual Meeting.
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PROPOSALS TO BE VOTED ON
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PROPOSAL 1: Election of Directors
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At the Annual Meeting, four
Class III
Directors are to be elected to hold office until the Annual Meeting of Stockholders to be held in 2027 and until each such director’s respective successor is elected and qualified or until each such director’s earlier death, resignation or removal.
The proposal regarding the election of directors requires the approval of a plurality of the votes cast. This means that the four nominees receiving the highest number of affirmative “FOR” votes will be elected as
Class III
Directors. Votes withheld and broker non-votes are not considered votes cast and, accordingly, will have no effect on the outcome of the vote on this proposal.
Our Board currently consists of
seven (7)
members, which includes our
Chief Executive Officer and Chairman
F. Porter Stansberry
, whose detailed information can be found in the Executive Officer section of this Proxy Statement. Our amended and restated certificate of incorporation and amended and restated bylaws provide that the authorized number of directors shall be fixed from time to time by a resolution of the majority of our board of directors. Our current non-employee directors are:
| Name | Age | |||||||
| Van Simmons | 72 | |||||||
| Matthew Smith | 48 | |||||||
| Glenn Tongue | 65 | |||||||
| Matthew Turner | 58 | |||||||
6
As set forth in our Certificate of Incorporation, our Board is divided into three staggered classes of directors of the same or nearly the same number. At each annual meeting of stockholders, the successors to directors whose terms then expire will be elected to serve from the time of election and qualification until the third annual meeting following election.
The current class structure is as follows: Class I, whose term will expire at the 2025 Annual Meeting of Stockholders; Class II, whose term will expire at the 2026 Annual Meeting of Stockholders; and, Class III, whose current term will expire at the 2024 Annual Meeting of Stockholders, and, if elected at the Annual Meeting, whose subsequent term will expire at the 2027 Annual Meeting of Stockholders. The current Class I Directors are David Eifrig and Van Simmons; the current Class II Director is Matthew Turner; and the current Class III Directors are F. Porter Stansberry, Michael Palmer, Glenn Tongue, and Matthew Smith.
Directors may be removed by our stockholders only for cause, and only by the affirmative vote of the holders of at least a majority of the voting power of our then-outstanding voting stock entitled to vote in the election of directors. Vacancies on our Board can be filled by resolution of our Board. Any increase or decrease in the number of directors will be distributed among the three classes so that, as nearly as possible, each class shall consist of one-third of the directors. The division of our Board into three classes with staggered three-year terms may have the effect of delaying or preventing changes in control of our Company.
If you submit a proxy but do not indicate any voting instructions, the persons named as proxies will vote the shares of Common Stock represented thereby for the election as Class III Directors of the persons whose names and biographies appear below. All of the persons whose names and biographies appear below are currently serving as our directors. In the event any of the nominees should become unable to serve or for good cause will not serve as a director, it is intended that votes will be cast for a substitute nominee designated by the Board or the Board may elect to reduce its size. The Board has no reason to believe that the nominees named below will be unable to serve if elected. Each of the nominees has consented to being named in this proxy statement and to serve if elected.
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VOTE REQUIRED
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The proposal regarding the election of directors requires the approval of a plurality of the votes cast. This means that the
four
nominees receiving the highest number of affirmative
“FOR”
votes will be elected as directors. Votes withheld and broker non-votes are not considered to be votes cast and, accordingly, will have no effect on the outcome of the vote on this proposal.
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RECOMMENDATION OF THE BOARD OF DIRECTORS
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The Board of Directors unanimously recommends a vote FOR ALL the Class III Director nominees below.
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BOARD NOMINEES FOR CLASS III DIRECTORS FOR A THREE YEAR TERM EXPIRING AT THE 2027 ANNUAL MEETING
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Name
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Age
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Served as a Director Since
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Positions with MarketWise
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| F. Porter Stansberry | 51 | 2023 | Chief Executive Officer and Chairman | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Michael Palmer |
| 53 |
| 2021 |
| Managing Director, Copywriter, and Director | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Glenn Tongue |
| 65 |
| 2023 |
| Director | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Matthew Smith |
| 48 |
| 2023 |
| Director | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Frank Porter Stansberry
is the founder of MarketWise. Mr. Stansberry rejoined our Board in September 2023, and has served as our Chief Executive Officer and Chairman of the Board since October 2023. Mr. Stansberry also previously served as Chairman of the Board until 2020. In April 2022, Mr. Stansberry founded Porter & Company, an investment advisory boutique. In addition to his 25+ year career as a financial analyst and publisher, Mr. Stansberry is also the founder of OneBlade, Inc., a men's luxury shaving brand. Mr. Stansberry holds a B.A. in Political Science and Government from the University of Florida. We believe Mr. Stansberry is qualified to serve on our Board of Directors because he has founded several financial publishing companies including MarketWise and worked in a variety of roles in the financial publishing industry for more than 25 years.
|
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Michael Palmer
has been our Managing Director and Copywriter since 2008 and has served as a member of our board of directors since July 2021. Mr. Palmer is responsible for helping to develop, train, and mentor copywriting teams at our various businesses, and to also write marketing copy from time to time for these businesses. Mr. Palmer started working in the consumer publishing industry more than 25 years ago, and has worked as an assistant editor, managing editor, copywriter, and head copywriter since then, hiring and training many of the top copywriters at MarketWise today. Mr. Palmer earned a B.A. in English from James Madison University and a M.A. in Publication Design from the University of Baltimore. We believe Mr. Palmer is qualified to serve on our Board of Directors due to his extensive experience in the consumer and financial publishing industry.
|
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Glenn H. Tongue
has served as a member of our Board since May 2023. Mr. Tongue is the General Partner of Deerhaven Capital Management and the sole Portfolio Manager of the Deerhaven Fund. Previously he was a General Partner and Co-Manager of T2 Partners Management from April 2004 to July 2012 and was the co-manager of three private investment partnerships: the Tilson Growth Fund, the Tilson Offshore Fund and the T2 Qualified Fund. Mr. Tongue holds an M.B.A. from The Wharton School at the University of Pennsylvania and a B.S. in Electrical Engineering and Computer Science from Princeton University. We believe Mr. Tongue is qualified to serve on our Board of Directors due to his extensive finance experience.
|
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Matthew Smith
has served as a member of our Board of Directors since May 2023. Mr. Smith is the founder of Royalty Exchange, Inc., where he has served on the board of directors since 2016 and previously served as the Chief Executive Officer from 2016 until 2021. Mr. Smith has also served on the board of directors of iTime Marketing, Inc. since 2002. Mr. Smith previously served as the Chief Executive Officer of Stansberry & Associates Investment Research, LLC ("Stansberry Research"), one of our financial publishing subsidiaries, from July 2012 until December 2015. Mr. Smith attended the University of Illinois from 1993 to 1995. We believe Mr. Smith is qualified to serve on our Board of Directors due to his prior experience with the Company and in the financial publishing industry.
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CONTINUING MEMBERS OF THE BOARD OF DIRECTORS: CLASS I DIRECTORS (TERMS TO EXPIRE AT THE 2025 ANNUAL MEETING)
|
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The current members of the Board who are Class I Directors are as follows:
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Name
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Age
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Served as a Director Since
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Positions with MarketWise
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| David Eifrig | 65 | 2023 |
| Director | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Van Simmons | 72 | 2021 |
| Director | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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David Eifrig
has served as a member of our Board of Directors since May 2023. Dr. Eifrig joined MarketWise in 2008 and remains one of its most prolific editors. Dr. Eifrig previously spent a decade on wall street working for several major financial institutions, including Goldman Sachs, Chase Manhattan and Yamaichi. Dr. Eifrig received his B.A. in Psychology from the Carleton College in Minnesota, and later received a M.B.A. from Northwestern University’s Kellogg School of Management, graduating with a double major in Finance and International Business. Dr. Eifrig subsequently earned his M.D. from the University of North Carolina at Chapel Hill. We believe Dr. Eifrig is qualified to serve on our Board of Directors because of his extensive experience in the financial publishing industry.
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Van Simmons
has served as a member of our Board of Directors since July 2021. Mr. Simmons has served as President of David Hall Rare Coins, Inc. since 1991. He also co-founded Collector’s Universe (NASDAQ: CLCT), the leading grading and authentication service to the collectibles market. Mr. Simmons also served on its board of directors from 1999 through 2018. As a rare coin dealer since 1979, Mr. Simmons is widely regarded as a leading authority on coin grading, having pioneered the coin grading standard in use today. Mr. Simmons holds a Masters Professional Director Certification from the American College of Corporate Directors, a public company director education and credentialing organization. We believe Mr. Simmons is qualified to serve on our Board of Directors due to his experience building and managing a successful business and his previous corporate governance experience serving on the board of a public company.
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CONTINUING MEMBERS OF THE BOARD OF DIRECTORS: CLASS II DIRECTOR (TERM TO EXPIRE AT THE 2026 ANNUAL MEETING)
|
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The current member of the Board who is a Class II Director is as follows:
8
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Name
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Age
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Served as a Director Since
|
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Positions with MarketWise
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| Matthew Turner | 58 | 2023 |
| Director | ||||||||||||||||
The principal occupation and business experience, for at least the past five years, of our Class II Director is as follows:
|
Matthew Turner
has served as a member of our Board of Directors since May 2023. Mr. Turner has also served as a member of the board of directors of our largest shareholder, Monument & Cathedral Holdings, LLC, since September 2015, and previously served as the General Counsel of Monument & Cathedral Holdings, LLC from 1997 until 2022. Having served as the former general counsel of a financial publishing and technology company for more than 25 years, we believe Mr. Turner is qualified to serve on our Board of Directors because of his extensive legal and compliance experience in the financial publishing industry.
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PROPOSAL 2: Ratification of Appointment of Independent Registered Public Accounting Firm
|
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Our Audit Committee has appointed Deloitte & Touche LLP (“Deloitte”) as our independent registered public accounting firm for the fiscal year ending December 31, 2024. Our Board has directed that this appointment be submitted to our stockholders for ratification at the Annual Meeting. Although ratification of our appointment of Deloitte is not required, we value the opinions of our stockholders and believe that stockholder ratification of our appointment is a good corporate governance practice.
Deloitte also served as our independent registered public accounting firm for the fiscal year ended December 31, 2023. Neither Deloitte nor any of its members has any direct or indirect financial interest in or any connection with us in any capacity other than as our auditors, providing audit and non-audit related services. A representative of Deloitte is expected to attend the Annual Meeting, have an opportunity to make a statement if he or she desires to do so, and be available to respond to appropriate questions from stockholders.
In the event that the appointment of Deloitte is not ratified by the stockholders, the Audit Committee will consider this fact when it appoints the independent auditors for the fiscal year ending December 31, 2024. Even if the appointment of Deloitte is ratified, the Audit Committee retains the discretion to appoint a different independent auditor at any time if it determines that such a change is in the interests of MarketWise.
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VOTE REQUIRED
|
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This proposal requires the approval of the affirmative vote of the holders of a majority in voting power of the votes cast. Abstentions will have no effect on the proposal. Because brokers have discretionary authority to vote on the ratification of the appointment of Deloitte, we do not expect any broker non-votes in connection with this proposal.
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RECOMMENDATION OF THE BOARD OF DIRECTORS
|
||
|
|
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The Board of Directors unanimously recommends a vote FOR the ratification of the appointment of Deloitte & Touche LLP as our independent registered public accounting firm.
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REVIEW BY AUDIT COMMITTEE OF THE BOARD OF DIRECTORS
|
||
The Audit Committee has reviewed the audited consolidated financial statements of MarketWise, Inc., a Delaware corporation (the “Company”) for the fiscal year ended December 31, 2023 and has discussed these financial statements with management and the Company’s independent registered public accounting firm. The Audit Committee has also received from, and discussed with, the Company’s independent registered public accounting firm various communications that such independent registered public accounting firm is required to provide to the Audit Committee, including the matters required to be discussed by the applicable requirements of the Public Company Accounting Oversight Board (“PCAOB”) and the Securities and Exchange Commission.
The Company’s independent registered public accounting firm also provided the Audit Committee with a formal written statement required by PCAOB Rule 3526 (Communications with Audit Committees Concerning Independence) describing all relationships between the independent registered public accounting firm and the Company, including the disclosures required by the applicable requirements of the PCAOB regarding the independent registered public accounting firm’s communications with the Audit Committee concerning independence. In addition, the Audit Committee discussed with the independent registered public accounting firm its independence from the Company.
Based on its discussions with management and the independent registered public accounting firm, and its review of the representations and information provided by management and the independent registered public accounting firm, the Audit Committee recommended to the Board of Directors that the audited consolidated financial statements be included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023.
Glenn Tongue (Chair)
9
Van Simmons
Matt Turner
|
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FEES AND OTHER MATTERS
|
||
Independent Registered Public Accounting Firm
The following is a summary of fees paid or to be paid to the firm of Deloitte for services rendered:
| Year Ended December 31, | |||||||||||
| (in thousands) | 2023 | 2022 | |||||||||
| Audit Fees | $ | 1,929 | $ | 2,344 | |||||||
| Audit-Related Fees | — | 413 | |||||||||
| Tax Fees | 1,217 | 1,523 | |||||||||
| All Other Fees | 2 | 31 | |||||||||
| Total | $ | 3,148 | $ | 4,311 | |||||||
Audit Fees consist of fees associated with our annual audit and the review of our quarterly reports on Form 10-Q in 2023 and 2022.
Audit-Related Fees consist of fees billed in relation to our S-3 registration statement and due diligence engagements.
Tax Fees consist of fees related to tax compliance, tax advice and planning.
All Other Fees consist of fees related to our subscription to Deloitte’s accounting research tool.
|
AUDIT COMMITTEE PRE-APPROVAL POLICY AND PROCEDURES
|
||
Our Audit Committee’s charter provides that the Audit Committee, or the chair of the Audit Committee, must pre-approve any audit or non-audit services provided to us by our independent registered public accounting firm, unless the engagement is entered into pursuant to appropriate pre-approval policies established by the Audit Committee or if the services fall within available exceptions under SEC rules. Without limiting the foregoing, the Audit Committee may delegate authority to one or more independent members of the Audit Committee to grant pre-approvals of audit and permitted non-audit services, and any such pre-approvals must be presented to the full Audit Committee at its next scheduled meeting.
|
EXECUTIVE OFFICERS
|
||
The following table identifies our current executive officers:
| Name | Age | Position | ||||||||||||
| F. Porter Stansberry | 51 | Chief Executive Officer | ||||||||||||
| Chad Curlett | 52 | Chief Operating Officer | ||||||||||||
| Erik Mickels | 47 | Chief Financial Officer | ||||||||||||
| Marco Galsim | 50 | Chief Information Officer | ||||||||||||
| Scott Forney | 39 | General Counsel and Corporate Secretary | ||||||||||||
10
Executive Officers
|
Frank Porter Stansberry
is the founder of MarketWise. Mr. Stansberry rejoined our Board in September 2023, and has served as our Chief Executive Officer and Chairman of the Board since October 2023. Mr. Stansberry previously served as Chairman of the Board until December 2020. In April 2022, Mr. Stansberry founded Porter & Company, LLC ("Porter & Company"), an investment advisory boutique. In addition to his 25+ year career as a financial analyst and publisher, Mr. Stansberry is also the founder of OneBlade, Inc., a men's luxury shaving brand. Mr. Stansberry holds a B.A. in Political Science and Government from the University of Florida.
|
||
|
Charles N. ("Chad") Curlett, Jr.
has served as our Chief Operating Officer since November 2023. Mr. Curlett is also the Founder and Managing Member of Curlett LLC, where he has served as outside General Counsel to Porter & Company, LLC since April 2022. Previously, Mr. Curlett served as a Partner and Vice Chair of the Criminal Defense and Investigations Practice Group at Rosenberg Martin Greenberg, LLP from January 2019 until April 2022, and as Managing Partner of Levin & Curlett LLC from October 2011 until December 2018. Mr. Curlett holds a J.D. from Brooklyn Law School, an LL.M. from Leiden University in the Netherlands, and a B.A. in English from Johns Hopkins University.
|
||
|
Erik Mickels
has served as our Chief Financial Officer since August 2023. Prior to his appointment, since 2016, Mr. Mickels served as Group Chief Financial Officer and Senior Vice President of Trilogy International Partners, Inc. (“Trilogy”), a wireless telecommunications company and member of the TSX Venture Exchange. Mr. Mickels previously served as Vice President of Finance and Chief Accounting Officer of Trilogy from 2015 to 2016, and as Vice President and Corporate Controller of Trilogy from 2014 to 2015. Prior to joining Trilogy, from 2000 to 2014, Mr. Mickels served in senior positions at KPMG LLP. Mr. Mickels holds a B.S in Accounting from Hillsdale College, is a graduate of the Advanced Management Program at Harvard Business School, and is a Certified Public Accountant.
|
||
|
Marco Galsim
has served as our Chief Information Officer since 2020, after serving as the Head of Technology for seven years. He provides leadership for the development of innovative, robust, scalable, and secure technology infrastructure. During his time with us, he spearheaded the full technology infrastructure transition into the cloud. Mr. Galsim has more than 20 years of experience in the technology space, having held a variety of technology positions at the Videology Group, AOL, Stanley Black and Decker, and Manugistics. Mr. Galsim holds a B.S. in Industrial Management Engineering with a minor in Mechanical Engineering from De La Salle University.
|
||
|
Scott Forney
has served as our General Counsel and Corporate Secretary since November 2023, after serving as our Assistant General Counsel from 2019 to 2023. Before joining MarketWise, Mr. Forney served as an attorney at several boutique law firms from 2014 to 2018. Mr. Forney holds a J.D. from the University of Maryland Francis King Carey School of Law, and a B.S. in Finance from Salisbury University.
|
||
Term of Executive Officers
Our Chief Executive Officer was appointed by and serves at the discretion of the Board. In accordance with our Bylaws, the Board has delegated the power to appoint and remove each other executive officer to our Chief Executive Officer.
Board of Directors
Please see the biographies and term information for each director set forth in Proposal 1 of this proxy statement.
|
CORPORATE GOVERNANCE
|
||
|
GENERAL
|
||
Our Board has adopted Corporate Governance Guidelines, a Code of Conduct and Business Ethics and charters for our Nominating and Corporate Governance Committee, Audit Committee and Compensation Committee to assist the Board in the exercise of its responsibilities and to serve as a framework for the effective governance of MarketWise. You can access our current committee charters, our Corporate Governance Guidelines and our Code of Conduct and Business Ethics in the “Governance” section of the “Investor Relations” page of our website located at
www.investors.marketwise.com
, or by writing to our Corporate Secretary at our offices at 1125 N. Charles Street, Baltimore, MD 21201.
11
|
BOARD COMPOSITION
|
||
|
Our Board is divided into three classes. Each class has a three-year term. Vacancies on the Board may be filled only by persons elected by a majority of the remaining directors. A director elected by the Board to fill a vacancy in a class, including vacancies created by an increase in the number of directors, shall serve for the remainder of the full term of that class and until the director’s successor is duly elected and qualified. Upon expiration of the term of a class of directors, directors for that class will be elected for three-year terms at the annual meeting of stockholders in the year in which that term expires. Each director will hold office until his or her successor is elected and qualified or until his or her earlier death, resignation, retirement, disqualification, or removal from office. Directors may be removed by our stockholders only for cause, and only by the affirmative vote of the holders of at least a majority of the voting power of our then-outstanding voting stock entitled to vote in the election of directors. Any increase or decrease in the number of directors will be distributed among the three classes so that, as nearly as possible, each class will consist of one-third of the directors. This classification of our Board may have the effect of delaying or preventing changes in control of our company.
Our Board presently has seven (7) members. The current class structure is as follows: Class I, whose terms will expire at the 2025 Annual Meeting of Stockholders; Class II, whose terms will expire at the 2026 Annual Meeting of Stockholders; and Class III, whose terms will expire at the 2024 Annual Meeting of Stockholders, and if elected at the Annual Meeting, whose subsequent terms will expire at the 2027 Annual Meeting of Stockholders. The current Class I Directors are David Eifrig and Van Simmons; the current Class II Directors are Matthew Turner; and the current Class III Directors are F. Porter Stansberry, Michael Palmer, Glenn Tongue, and Matthew Smith.
|
||
|
DIRECTOR INDEPENDENCE
|
||
|
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 Van Simmons, Matthew Smith, Glenn Tongue, and Matthew Turner, representing four of our seven 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 Nasdaq Global Market. In making this determination, our Board considered the current and prior relationships that each non-employee director has with our company and all other facts and circumstances our Board deemed relevant in determining their independence, including the beneficial ownership of our capital stock by each non-employee director.
|
||
|
BOARD DIVERSITY MATRIX
|
||
The Company does not have a policy regarding the consideration of diversity in identifying nominees for director. Instead, as discussed below, the Corporate Governance Committee identifies and considers all candidates equally who have demonstrated notable or significant achievements in business, education or public service; possess the requisite intelligence, education and experience to make a significant contribution to the Board and bring a range of skills, diverse perspectives and backgrounds to its deliberations; and who have the highest ethical standards, a strong sense of professionalism and intense dedication to serving the interests of the shareholders.
|
Board Diversity Matrix (As of April 12, 2024)
|
||||||||||||||||||||||||||
| Total Number of Directors |
7
|
|||||||||||||||||||||||||
| Part I: Gender Identity | Female | Male | Non-Binary | Did Not Disclose Gender | ||||||||||||||||||||||
| Directors | — | 3 | — | 4 | ||||||||||||||||||||||
| Part II: Demographic Information | ||||||||||||||||||||||||||
| African American or Black | — | — | — | — | ||||||||||||||||||||||
| Alaskan Native or Native American | — | — | — | — | ||||||||||||||||||||||
| Asian | — | — | — | — | ||||||||||||||||||||||
| Hispanic or Latinx | — | — | — | — | ||||||||||||||||||||||
| Native Hawaiian or Pacific Islander | — | — | — | — | ||||||||||||||||||||||
| White | — | 3 | — | — | ||||||||||||||||||||||
| Two or More Races or Ethnicities | — | — | — | — | ||||||||||||||||||||||
| LGBTQ+ | — | — | — | — | ||||||||||||||||||||||
| Did Not Disclose Demographic Background | 4 | |||||||||||||||||||||||||
12
| Board Diversity Matrix (As of May 19, 2023) | ||||||||||||||||||||||||||
| Total Number of Directors |
10
|
|||||||||||||||||||||||||
| Part I: Gender Identity | Female | Male | Non-Binary | Did Not Disclose Gender | ||||||||||||||||||||||
| Directors | 1 | 7 | — | 2 | ||||||||||||||||||||||
| Part II: Demographic Information | ||||||||||||||||||||||||||
| African American or Black | — | — | — | — | ||||||||||||||||||||||
| Alaskan Native or Native American | — | — | — | — | ||||||||||||||||||||||
| Asian | — | — | — | — | ||||||||||||||||||||||
| Hispanic or Latinx | — | — | — | — | ||||||||||||||||||||||
| Native Hawaiian or Pacific Islander | — | — | — | — | ||||||||||||||||||||||
| White | 1 | 7 | — | — | ||||||||||||||||||||||
| Two or More Races or Ethnicities | — | — | — | — | ||||||||||||||||||||||
| LGBTQ+ | — | — | — | — | ||||||||||||||||||||||
| Did Not Disclose Demographic Background | 1 | |||||||||||||||||||||||||
|
DIRECTOR CANDIDATES
|
||
The Nominating and Corporate Governance Committee is primarily responsible for identifying and reviewing the qualifications of potential director candidates, recommending to the Board those candidates to be nominated for election to the Board and filling vacancies on the Board.
To facilitate the search process for director candidates, the Nominating and Corporate Governance Committee may solicit our current directors and executives for the names of potentially qualified candidates or may ask directors and executives to pursue their own business contacts for the names of potentially qualified candidates. The Nominating and Corporate Governance Committee may also consult with outside advisors or retain search firms to assist in the search for qualified candidates, or consider director candidates recommended by our stockholders. Once potential candidates are identified, the Nominating and Corporate Governance Committee reviews the backgrounds of those candidates, evaluates candidates’ independence from the Company and potential conflicts of interest, and determines if candidates meet the qualifications desired by the Nominating and Corporate Governance Committee of candidates for election as director.
In accordance with our Corporate Governance Guidelines, in evaluating the suitability of individual candidates, the Nominating and Corporate Governance Committee will consider (i) minimum individual qualifications, including a high level of personal and professional integrity, strong ethics and values and the ability to make mature business judgments and (ii) all other factors it considers appropriate, which may include experience in corporate management, experience as a board member of other public companies, relevant professional or academic experience, leadership skills, financial and accounting background, executive compensation background and whether the candidate has the time required to fully participate as a director of the Company. Our Corporate Governance Guidelines provide that the Board should monitor the mix of specific experience, qualifications and skills of its directors in order to assure that the Board, as a whole, has the necessary tools to perform its oversight function effectively in light of the Company’s business and structure.
Stockholders may recommend individuals to the Nominating and Corporate Governance Committee for consideration as potential director candidates by submitting the names of the recommended individuals, together with appropriate biographical information and background materials, to the Nominating and Corporate Governance Committee, c/o Corporate Secretary, MarketWise, Inc., 1125 N. Charles Street, Baltimore, MD 21201. In the event there is a vacancy, and assuming that appropriate biographical and background material has been provided on a timely basis, the Nominating and Corporate Governance Committee will evaluate stockholder-recommended candidates by following substantially the same process, and applying substantially the same criteria, as it follows for candidates submitted by others.
|
COMMUNICATIONS FROM INTERESTED PARTIES
|
||
The Board will give appropriate attention to written communications that are submitted by stockholders, and will respond if and as appropriate. Our Corporate Secretary is primarily responsible for monitoring communications from stockholders and for providing copies or summaries to the directors as he considers appropriate.
Anyone who would like to communicate with, or otherwise make his or her concerns known directly to the Board, the chairman of any of the Audit, Nominating and Corporate Governance, and Compensation Committees, or to the independent directors as a group, may do so by addressing such communications or concerns to the Corporate Secretary of the Company, 1125 N. Charles Street, Baltimore, MD 21201, who will forward such communications to the appropriate party. Such communications may be done confidentially or anonymously.
13
|
BOARD LEADERSHIP STRUCTURE AND ROLE IN RISK OVERSIGHT
|
||
Our Board exercises its discretion in combining or separating the roles of Chairman of the Board and Chief Executive Officer as it deems appropriate in light of prevailing circumstances. We believe that we, like many U.S. companies, are well-served by a flexible leadership structure. Currently, the roles are combined, with Mr. Stansberry serving as Chairman of the Board and Chief Executive Officer. Our Board has determined that combining the roles of Chairman of the Board and Chief Executive Officer is best for our Company and its stockholders at this time because it promotes unified leadership by Mr. Stansberry and allows for a single, clear focus for management to execute the Company’s strategy and business plans. Our Board is comprised of individuals with extensive experience in finance, the publishing industry and public company management. For these reasons and because of the strong leadership of Mr. Stansberry as Chairman of the Board and Chief Executive Officer, our Board has concluded that our current leadership structure is appropriate at this time. However, our Board will continue to consider whether the positions of Chairman of the Board and Chief Executive Officer should be separated or combined at any given time as part of our succession planning process.
Our Corporate Governance Guidelines provide that, whenever our Chairman of the Board is also our Chief Executive Officer or is a director that does not otherwise qualify as an independent director, the Board will elect a lead independent director to preside at the meetings of Independent Directors. The full list of responsibilities of our lead independent director may be found in our Corporate Governance Guidelines. Our current lead independent director is Glenn Tongue.
Risk assessment and oversight are an integral part of our governance and management processes. Our management is responsible for our day-to-day risk management activities. Our Board oversees the implementation of risk mitigation strategies by management and encourages management to promote a culture that incorporates risk management into our corporate strategy and day-to-day business operations. Management discusses strategic and operational risks at regular management meetings and conducts specific strategic planning and review sessions during the year that include a focused discussion and analysis of the risks we face, including cybersecurity risks. Throughout the year, senior management reviews these risks with the Board at regular board meetings as part of management presentations that focus on particular business functions, operations or strategies, and presents the steps taken by management to mitigate or eliminate such risks. Our Board is apprised of particular risk management matters in connection with its general oversight and approval of corporate matters and significant transactions. Our Board administers this oversight function, including the oversight of cybersecurity risks, directly through the Board as a whole, as well as through various standing committees of the Board that address risks inherent in their respective areas of oversight. The Board does not believe that its role in the oversight of our risks affects the Board’s leadership structure.
|
ANTI-HEDGING POLICY
|
||
Our Board has adopted an Insider Trading Policy, which applies to all of our directors, officers, employees and contractors. The policy prohibits our directors, officers, employees, contractors and any entities they control from engaging in all hedging or monetization transactions, such as zero-cost collars and forward sale contracts, involving the Company’s equity securities.
|
CODE OF CONDUCT AND BUSINESS ETHICS
|
||
Our Board has adopted a Code of Conduct and Business Ethics that contain the ethical principles by which our Chief Executive Officer and Chief Financial Officer, among others, are expected to conduct themselves when carrying out their duties and responsibilities. A copy of our Code of Conduct and Business Ethics is available on our website at
www.investors.marketwise.com
. We will provide a copy of our Code of Conduct and Business Ethics to any person, without charge, upon request, by writing to, MarketWise, Inc., 1125 N. Charles Street, Baltimore, MD 21201 (telephone number (888) 261-2693). We intend to satisfy the disclosure requirement under Item 5.05 of Form 8-K regarding an amendment to, or waiver from, a provision of our Code of Conduct and Business Ethics by posting such information on our website at
www.marketwise.com
.
|
ATTENDANCE BY MEMBERS OF THE BOARD OF DIRECTORS AT MEETINGS
|
||
Our Board of Directors — Shareholder Communication and Engagement Policy provides that each of our directors is expected to attend our Annual Meeting of Stockholders, absent a compelling reason. Nine directors who were on our Board at the time attended our 2023 Annual Meeting of Stockholders.
There were twelve meetings of the Board during the fiscal year ended December 31, 2023. During the fiscal year ended December 31, 2023, each director attended at least 75% of the aggregate of (i) all meetings of the Board and (ii) all meetings of the committees on which the director served during the period in which he or she served as a director.
Under our Corporate Governance Guidelines, which is available on our website at
www.investors.marketwise.com
, a director is expected to spend the time and effort necessary to properly discharge his or her responsibilities. Accordingly, a director is expected to regularly prepare for and attend meetings of the Board and all committees on which the director sits (including separate meetings of the independent directors), with the understanding that, on occasion, a director may be unable to attend a meeting. A director who is unable to attend a meeting of the Board or a committee of the Board is expected to notify the Chairman of the Board or the Chair of the appropriate committee in advance of such meeting, and, whenever possible, participate in such meeting via teleconference in the case of an in-person meeting.
|
EXECUTIVE SESSIONS
|
||
The independent members of the Board meet in regularly scheduled executive sessions. Such meetings are presided over by our Chair or lead independent director, as applicable.
14
|
COMMITTEES OF THE BOARD
|
||
Our Board has established three standing committees—Audit, Compensation and Nominating and Corporate Governance—each of which operates under a written charter that has been approved by our Board. The members of each of the committees is set forth below:
|
Audit Committee
|
Compensation Committee
|
Nominating and Governance Committee
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Glenn Tongue | Van Simmons | Matthew Turner | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Van Simmons | Matthew Smith | Van Simmons | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Matthew Turner | Glenn Tongue | Glenn Tongue | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| AUDIT COMMITTEE | ||
The Audit Committee’s responsibilities include:
▪
appointing, approving the compensation of, and assessing the independence of our 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;
▪
assisting our Board in overseeing our internal control over financial reporting and disclosure controls and procedures;
▪
reviewing the effectiveness of our risk management policies;
▪
reviewing legal, regulatory and compliance matters that could have a significant impact on our financial statements;
▪
meeting independently with our internal auditing staff, if any, and independent registered public accounting firm and management;
▪
reviewing and approving or ratifying related-person transactions; and
▪
preparing the audit committee report required by SEC rules.
The members of our Audit Committee are Glenn Tongue, Van Simmons and Matthew Turner, each of whom meets the requirements for financial literacy under the Nasdaq rules. Glenn Tongue serves as the chairman of the committee. We undertook a review of the independence of the directors named above and have determined that each of the members of the Audit Committee meets the independence requirements of Rule 10A-3 under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and the applicable Nasdaq rules, and that Glenn Tongue is an “audit committee financial expert” as defined in Item 407(d)(5) of Regulation S-K and has the requisite financial sophistication as defined under the applicable Nasdaq rules.
The Audit Committee met 6 times during the fiscal year ended December 31, 2023.
Our Board adopted a written charter for the Audit Committee, which is available on our website.
| COMPENSATION COMMITTEE | ||
The Compensation Committee’s responsibilities include:
▪
reviewing and approving the compensation of our Chief Executive Officer and other executive officers and, in the case of our Chief Executive Officer, recommending for approval by the Board the compensation of our Chief Executive Officer;
▪
developing and administering our equity incentive plans;
▪
reviewing and making recommendations to our Board with respect to director compensation;
▪
reviewing and discussing annually with management, and recommending to our Board, our “Compensation Discussion and Analysis,” to the extent required; and
▪
preparing the annual compensation committee report required by SEC rules, to the extent required.
The members of our Compensation Committee are Van Simmons, Matthew Smith, and Glenn Tongue. Van Simmons serves as the chairman of the committee. We undertook a review of the independence of the directors named above and have determined that each of the members of the Compensation Committee is “independent” as defined under the applicable Nasdaq rules. We undertook a review and determined that Van Simmons, Matthew Smith, and Glenn Tongue are “non-employee directors” as defined in Rule 16b-3 promulgated under the Exchange Act. To the extent necessary or advisable for purposes of Section 162(m) of the U.S. Internal Revenue Code of 1986, as amended (the “Code”), a minimum of two compensation committee members shall qualify as “outside directors” within the meaning of such section.
15
The Compensation Committee met 13 times during the fiscal year ended December 31, 2023.
Our Board adopted a written charter for the Compensation Committee, which is available on our website.
| NOMINATING AND CORPORATE GOVERNANCE COMMITTEE | ||
The Nominating and Corporate Governance Committee’s responsibilities include:
•
identifying individuals qualified to become members of our Board;
•
recommending to our Board the persons to be nominated for election as directors and to each Board committee;
•
reviewing and recommending to our Board’s corporate governance principles, procedures, and practices, and reviewing and recommending to our Board proposed changes to our corporate governance principles, procedures, and practices from time to time; and
•
reviewing and making recommendations to our Board with respect to the composition, size and needs of our Board.
The members of our Nominating and Corporate Governance Committee are Matthew Turner, Van Simmons, and Glenn Tongue. Matthew Turner serves as the chairman of the committee. We undertook a review of the independence of the directors named above and have determined that each of the members of the Nominating and Corporate Governance Committee is “independent” as defined under the applicable Nasdaq rules.
The Nominating and Corporate Governance Committee met 8 times during the fiscal year ended December 31, 2023.
Our Board adopted a written charter for the Nominating and Corporate Governance Committee, which is available on our website.
|
EXECUTIVE COMPENSATION
|
||
This section discusses the material components of the executive compensation program for our executive officers who are named in the “Summary Compensation Table” below. In 2023, our “named executive officers” and their positions were as follows:
▪
F. Porter Stansberry, Chief Executive Officer and Chairman
▪
Amber Mason, former Chief Executive Officer and former Director
▪
Stephen Sjuggerud, former Interim Chief Executive Officer and former Director
▪
Erik Mickels, Chief Financial Officer
▪
Marco Galsim, Chief Information Officer
▪
Marco Ferri, former Chief Business Development Officer; and
▪
Gary Anderson, former General Counsel.
16
| SUMMARY COMPENSATION TABLE | ||
The following table sets forth information concerning the compensation of our named executive officers during the fiscal year ended December 31, 2023:
| Name and Principal Position | Year |
Salary
($) |
Bonus
($) |
Stock Awards
($) |
Non-Equity Incentive Plan Compensation
($) |
All Other Compensation
($) | Total | |||||||||||||||||||||||||||||||||||||||||||||||||
| F. Porter Stansberry, Chief Executive Officer and Chairman | 2023 | 1 | — | — | — | 107,550 | (1) | 107,551 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Amber Mason, former Chief Executive Officer and former Director | 2023 | 388,656 | — | — | — | 1,733,000 | (2) | 2,121,656 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Stephen Sjuggerud, former Interim Chief Executive Officer and former Director | 2023 | 284,274 | — | — | 188,000 | (3) | — | 472,274 | ||||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 529,861 | — | — | — | 9,150 | 539,011 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Erik Mickels, Chief Financial Officer | 2023 | 171,154 | 500,000 | (4) | 690,000 | (5) | — | 159,472 | (6) | 1,520,626 | ||||||||||||||||||||||||||||||||||||||||||||||
| Marco Galsim, Chief Information Officer | 2023 | 418,654 | 127,532 | (7) | 222,500 | (5) | — | — | 768,686 | |||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 314,038 | 125,936 | (8) | 270,769 | (9) | — | 9,054 | 719,797 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Marco Ferri, former Chief Business Development Officer | 2023 | 392,473 | — | — | 131,000 | (11) | 1,137,765 | (11) | 1,661,238 | |||||||||||||||||||||||||||||||||||||||||||||||
| 2022 | 500,000 | — | — | 343,000 | (12) | 9,150 | 852,150 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Gary Anderson, former General Counsel | 2023 | 421,195 | — | — | — | 1,501,258 | (13) | 1,922,453 | ||||||||||||||||||||||||||||||||||||||||||||||||
| OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END | ||
The following table summarizes the number of shares underlying outstanding equity incentive plan awards for each named executive officer as of December 31, 2023.
| Option Awards | Stock Awards | |||||||||||||||||||||||||||||||||||||||||||||||||
| Name | Grant Date | Number of Securities Underlying Unexercised Options (#) Exercisable | Number of Securities Underlying Unexercised Options (#) Unexercisable |
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 ($) (7) |
|||||||||||||||||||||||||||||||||||||||||||
| F. Porter Stansberry | 9/8/2023 | — | — | $— | 73,209 | (1) | 199,861 | |||||||||||||||||||||||||||||||||||||||||||
| Erik Mickels | 9/8/2023 | — | — | $— | 250,000 | (2) | 682,500 | |||||||||||||||||||||||||||||||||||||||||||
| Marco Galsim | 9/27/2021 | 23,614 | 23,615 | $8.30 | 9/27/2031 | — | (3) | — | ||||||||||||||||||||||||||||||||||||||||||
| Marco Galsim | 9/27/2021 | — | — | $— | 28,125 | (4) | 76,781 | |||||||||||||||||||||||||||||||||||||||||||
| Marco Galsim | 12/16/2022 | — | — | $— | 115,385 | (5) | 315,001 | |||||||||||||||||||||||||||||||||||||||||||
| Marco Galsim | 3/15/2023 | — | — | $— | 125,000 | (6) | 341,250 | |||||||||||||||||||||||||||||||||||||||||||
| EXECUTIVE COMPENSATION ARRANGEMENTS | ||
Employment Agreements
F. Porter Stansberry
On October 20, 2023, Mr. Stansberry entered into a letter agreement providing for the terms of his employment as Chief Executive Officer (the “Stansberry Letter Agreement”). Under the Stansberry Letter Agreement, Mr. Stansberry’s annual base salary will be $1.00. Mr. Stansberry will also be eligible to receive an annual discretionary incentive bonus (the “Annual Incentive Bonus”) composed of cash and/or equity awards granted under the MarketWise, Inc. 2021 Incentive Award Plan (or any successor thereto), with such annual target incentives as may be determined by the Compensation Committee in its sole discretion.
In addition, in connection with his appointment as Chief Executive Officer, Mr. Stansberry is eligible to participate in the Company’s Severance Plan pursuant to which, in the event of the termination of Mr. Stansberry’s employment by the Company without Cause or Mr. Stansberry’s resignation for Good Reason (each as defined in the Severance Plan), Mr. Stansberry will be entitled to receive (i) a lump-sum cash payment equal to 1.5 times his base salary (2 times his base salary if such termination occurs during the Change in Control Protection Period (as defined in the Severance Plan)), (ii) a pro-rated portion of his Target Cash Bonus (as defined in the Severance Plan) for the year of termination (2 times his Target Cash Bonus if such termination occurs during the Change in Control Protection Period), (iii) healthcare continuation coverage or reimbursement of premiums for 18 months following termination, and (iv) continued vesting of outstanding time-based equity awards (or acceleration of vesting of outstanding time-based equity awards if such termination occurs during the Change in Control Protection Period), in each case, subject to Mr. Stansberry’s execution and non-revocation of a release of claims and Mr.
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Stansberry’s continued compliance with applicable restrictive covenants, including 18 month post-termination non-competition and non-solicitation covenants and perpetual confidentiality covenants. The Severance Plan also provides that, in the event of the termination of Mr. Stansberry’s employment due to death or Disability (as defined in the Severance Plan), Mr. Stansberry will be entitled to receive (i) healthcare continuation coverage or reimbursement of premiums for 18 months following termination, and (ii) acceleration of vesting of outstanding time-based equity awards.
Amber Mason
On February 14, 2023, Ms. Mason entered into a letter agreement (the “Mason Letter Agreement”) that superseded Ms. Mason’s previous employment agreement, dated January 10, 2023. Under the Mason Letter Agreement, Ms. Mason’s annual base salary remained $500,000. Ms. Mason will be eligible to receive an annual cash incentive bonus, subject to annual review by the Committee, in an amount equal to 1.5% of net income of the Company, up to a maximum of $2.25 million dollars, and she will also be eligible for a discretionary bonus of up to an additional .25% of net income of the Company (payable in cash and/or equity). Ms. Mason will also be eligible to receive an annual award of Restricted Stock Units with a target economic value of $1.25 million dollars, subject to vesting requirements set forth in the applicable award agreement. In addition, the Letter Agreement provides for a relocation bonus of $400,000 in connection with Ms. Mason’s relocation to the Baltimore, Maryland area, which bonus is earned over the twelve-month period following the payment date. The relocation bonus may be subject to repayment on a pro rata basis in the event Ms. Mason’s employment terminates with the Company for any reason during such twelve-month period.
In connection with her appointment as Chief Executive Officer, Ms. Mason remained eligible to participate in the Severance Plan, pursuant to which, in the event of the termination of Ms. Mason’s employment by the Company without Cause or Ms. Mason’s resignation for Good Reason (each as defined in the Severance Plan), Ms. Mason will be entitled to receive (i) a lump-sum cash payment equal to 1.5 times her base salary (2 times her base salary if such termination occurs during the Change in Control Protection Period (as defined in the Severance Plan)), (ii) a pro-rated portion of her Target Cash Bonus (as defined in the Severance Plan) for the year of termination (2 times her Target Cash Bonus if such termination occurs during the Change in Control Protection Period), (iii) healthcare continuation coverage or reimbursement of premiums for 18 months following termination, and (iv) continued vesting of outstanding time-based equity awards (or acceleration of vesting of outstanding time-based equity awards if such termination occurs during the Change in Control Protection Period), in each case, subject to Ms. Mason’s execution and non-revocation of a release of claims and Ms. Mason’s continued compliance with applicable restrictive covenants, including 18 month post-termination non-competition and non-solicitation covenants and perpetual confidentiality covenants. The Severance Plan also provides that, in the event of the termination of Ms. Mason’s employment due to death or Disability (as defined in the Severance Plan), Ms. Mason will be entitled to receive (i) healthcare continuation coverage or reimbursement of premiums for 18 months following termination, and (ii) acceleration of vesting of outstanding time-based equity awards.
On October 17, 2023, the Board approved the mutual termination of Amber Mason as Chief Executive Officer of the Company, effective immediately. On October 30, 2023, in connection with the termination of Ms. Mason’s employment, the Company and Ms. Mason entered into a letter agreement regarding the terms of such termination of employment (the “Mason Termination Agreement”). Pursuant to the Mason Termination Agreement, Ms. Mason will be eligible to receive, subject to her execution and non-revocation of a release of claims and continued compliance with the terms of the Mason Termination Agreement, a separation payment equal to $1,333,000, payable in a lump sum, as well as forgiveness of the remaining amount of the relocation bonus paid to Ms. Mason in the amount of $266,000. The Mason Termination Agreement also provides that Ms. Mason will be subject to a twelve-month post-termination non-solicit covenant as well as perpetual non-disparagement and confidentiality covenants.
Stephen Sjuggerud
On November 22, 2022, the Board of the Company appointed Dr. Stephen Sjuggerud to serve as interim Chief Executive Officer (“Interim CEO”). In connection with his appointment as Interim CEO, on December 27, 2022, the Company entered into an Offer Letter with Dr. Sjuggerud (the “Interim CEO Offer Letter”) which set forth certain compensation terms that supplement and/or supersede the compensation terms set forth in Dr. Sjuggerud’s Employment Agreement with the Company dated May 1, 2015 (the “Sjuggerud Employment Agreement”) with respect to his service as Interim CEO, effective as of November 18, 2022, with guaranteed minimum salary payments of $375,000 in the event of the termination by the Company without cause of his Interim CEO role prior to the six-month anniversary of his appointment and of $750,000 in the event of the termination by the Company without cause of his Interim CEO role upon or following the six-month anniversary but prior to the twelve-month anniversary of his appointment. In addition, the Offer Letter provides that Dr. Sjuggerud will be eligible to receive a discretionary bonus of up to $375,000 (as determined by our Compensation Committee after evaluating company and individual performance during Dr. Sjuggerud’s tenure as Interim CEO) upon or shortly following the six-month anniversary of his appointment as Interim CEO (or upon the termination of his Interim CEO role, if earlier) and, if the duration of his employment as Interim CEO exceeds six months, an additional discretionary bonus of up to $375,000 following the termination of his Interim CEO role. Except as set forth in the
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Interim CEO Offer letter, the Sjuggerud Employment Agreement will remain in full force and effect during Dr. Sjuggerud’s service as Interim CEO and following the termination of such service.
Pursuant to the Sjuggerud Employment Agreement, Dr. Sjuggerud is subject to confidentiality and assignment of intellectual property provisions and certain restrictive covenants, including non-disparagement and two-year post-employment non-competition and non-solicitation of employees and customer provisions.
Dr. Sjuggerud resigned from his role as Interim CEO, effective February 15, 2023.
Erik Mickels
On July 6, 2023, Mr. Mickels entered into a letter agreement for his position as Chief Financial Officer (the “Mickels Letter Agreement”). Under the Mickels Letter Agreement, Mr. Mickels’ annual base salary was set at $500,000, and Mr. Mickels will be eligible for an initial equity grant of 500,000 restricted stock units, 50% of which vest upon Mr. Mickels' relocation to the Baltimore, Maryland area where the Company is headquartered, provided that such relocation occurs prior to December 31, 2023, with the remaining restricted stock units vesting in equal installments on March 15, 2025, and March 15, 2026, subject to Mr. Mickels' continued employment through the applicable vesting dates. If, within four years of the Effective Date, the price of the Company’s Class A common stock reaches a minimum of $6 per share and such minimum price is maintained for twenty consecutive trading days, Mr. Mickels will be entitled to receive, on the March 15 following the year in which the milestone is achieved, an additional grant of 100,000 restricted stock units, which will vest in four equal installments over a four-year period. For the 2023 performance year, Mr. Mickels will receive an annual cash incentive bonus of no less than $500,000. For the 2024 performance year, Mr. Mickels will receive (i) if the Company’s net income for the period is greater than $90 million, a cash incentive bonus of no less than $600,000; or (ii) if the Company’s net income for the period is less than $90 million, a cash incentive bonus of no less than $500,000. Following the 2024 performance year, Mr. Mickels will be eligible to receive a discretionary annual cash bonus. Mr. Mickels will also be eligible to receive an annual award of restricted stock units with a target economic value of $750,000 dollars, subject to the collective discretion of our Chief Executive Officer and Board of Directors and the vesting requirements set forth in the applicable award agreement. In addition, the Letter Agreement provides for a relocation bonus of $300,000 in connection with Mr. Mickels’ relocation to the Baltimore, Maryland area, which bonus is earned over the twelve-month period following the payment date. The relocation bonus may be subject to repayment on a pro rata basis in the event Mr. Mickels’ employment terminates with the Company for any reason during such twelve-month period. Mr. Mickels is also entitled to up to six months of temporary housing reimbursement, up to $10,000 per month.
In connection with his appointment as Chief Financial Officer, Mr. Mickels is eligible to participate in the Severance Plan, pursuant to which, in the event of the termination of Mr. Mickels’ employment by the Company without Cause or Mr. Mickels’ resignation for Good Reason (each as defined in the Severance Plan), Mr. Mickels will be entitled to receive (i) a lump-sum cash payment equal to 1.25 times his base salary (1.5 times his base salary if such termination occurs during the Change in Control Protection Period (as defined in the Severance Plan)), (ii) a pro-rated portion of his Target Cash Bonus (as defined in the Severance Plan) for the year of termination (1.5 times his Target Cash Bonus if such termination occurs during the Change in Control Protection Period), (iii) healthcare continuation coverage or reimbursement of premiums for 18 months following termination, and (iv) continued vesting of outstanding time-based equity awards (or acceleration of vesting of outstanding time-based equity awards if such termination occurs during the Change in Control Protection Period), in each case, subject to Mr. Mickels’ execution and non-revocation of a release of claims and Mr. Mickels’ continued compliance with applicable restrictive covenants, including 18 month post-termination non-competition and non-solicitation covenants and perpetual confidentiality covenants. The Severance Plan also provides that, in the event of the termination of Mr. Mickels’ employment due to death or Disability (as defined in the Severance Plan), Mr. Mickels will be entitled to receive (i) healthcare continuation coverage or reimbursement of premiums for 18 months following termination, and (ii) acceleration of vesting of outstanding time-based equity awards.
Marco Galsim
Prior to 2023, Mr. Galsim was not a party to an employee agreement or offer letter.
On January 10, 2023, the Company and Mr. Galsim entered into a letter agreement (the “Galsim Employment Agreement”), that governs the terms of his continued employment as Chief Information Officer with the Company. Under the Galsim Employment Agreement, Mr. Galsim’s base salary will be $425,000, and he will be eligible to receive an annual discretionary incentive bonus, payable in cash and/or equity, based on individual and Company performance for each year, beginning in 2023.
Under the Galsim Employment Agreement, Mr. Galsim was eligible to participate in the Severance Plan, pursuant to which, in the event of the termination of Mr. Galsim’s employment by the Company without Cause or Mr. Galsim’s resignation for Good Reason (each as defined in the Severance Plan), Mr. Galsim will be entitled to receive (i) a lump-sum cash payment equal to 1.25 times his base salary (1.5 times his base salary if such termination occurs during the Change in Control Protection Period (as defined in the Severance Plan)), (ii) a pro-rated portion of his Target Cash Bonus (as defined in the Severance Plan) for the year of termination (1.5 times his Target Cash Bonus if such termination occurs during the Change in Control Protection Period), (iii) healthcare continuation coverage or reimbursement of premiums for 18 months following termination, and (iv) continued vesting of outstanding time-based equity awards (or acceleration of vesting of outstanding time-based equity awards if such termination occurs during the Change in Control Protection Period), in each case, subject to Mr. Galsim’s execution and non-revocation of a release of claims and Mr. Galsim’s continued compliance with applicable restrictive covenants, including 18 month post-termination non-competition and non-solicitation covenants and perpetual confidentiality covenants. The Severance Plan also provides that, in the event of the termination of Mr. Galsim’s employment due to death or Disability (as defined in the Severance
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Plan), Mr. Galsim will be entitled to receive (i) healthcare continuation coverage or reimbursement of premiums for 18 months following termination, and (ii) acceleration of vesting of outstanding time-based equity awards.
Marco Ferri
MarketWise, LLC entered into an employment agreement with Mr. Ferri, effective July 30, 2018, providing for his position as Director of Business Development with an initial base salary of $500,000 (the “Ferri Employment Agreement”). The Ferri Employment Agreement provides that Mr. Ferri’s employment term with MarketWise, LLC expires on July 30, 2021 and shall automatically renew for subsequent one-year renewal terms unless otherwise terminated by Mr. Ferri or MarketWise, LLC. The Ferri Employment Agreement may be terminated by Mr. Ferri or MarketWise, LLC at any time and for any reason upon 60 days’ notice.
The Ferri Employment Agreement provides that Mr. Ferri shall be eligible to receive an annual executive bonus payment, which is determined by MarketWise, LLC on a discretionary basis based on our overall performance for the year, as well as individual performance milestones achieved, subject to Mr. Ferri’s employment through the payment date. Upon any (a) acquisition of a target company and/or (b) creation of a joint venture entity by us, Mr. Ferri is also entitled to receive a cash bonus. In the event of a qualifying acquisitions, Mr. Ferri is entitled to receive a bonus of up to 5% of the enterprise value of the target entity, subject to certain milestone performance achievements and his continued employment through the payment dates. In the event of the creation of a successful joint venture, Mr. Ferri is entitled to receive a cash bonus based on the aggregate net sales of the joint venture, payable in installments over three years, subject to his continued employment through the payment date.
In the event Mr. Ferri’s employment is terminated due to his death or for any reason other than for “cause” (as defined in the Ferri Employment Agreement), subject to his execution and non-revocation of a release of claims, he will be entitled to receive a separation bonus equal to three years of his base salary, less any base salary amounts previously paid during the employment term. Such separation bonus will be payable in three equal annual installments.
Mr. Ferri is entitled to participate in MarketWise, LLC’s health and welfare plans.
Pursuant to the Ferri Employment Agreement, Mr. Ferri is subject to confidentiality and assignment of intellectual property provisions and certain restrictive covenants, including non-disparagement and two-year post-employment non-competition and non-solicitation of employees and customer provisions.
On January 25, 2023, Mr. Ferri entered into a letter agreement (the "Ferri Letter Agreement") that superseded the Ferri Employment Agreement (other than as set forth therein). Under the Ferri Letter Agreement, Mr. Ferri’s base salary remained $500,000, he remained eligible to receive any bonus payments that remain outstanding pursuant to the terms of the Ferri Employment Agreement in connection with certain acquisition and joint venture transactions initiated prior to entry into the Ferri Letter Agreement, and he was also eligible to receive an annual discretionary incentive bonus, payable in cash and/or equity, based on individual and Company performance for each year, beginning in 2023, subject to potential reduction or offset by amounts paid in each applicable year under the bonus provisions of the Ferri Employment Agreement.
Under the Ferri Letter Agreement, Mr. Ferri was eligible to participate in the Severance Plan, pursuant to which, in the event of the termination of Mr. Ferri’s employment by the Company without Cause or Mr. Ferri’s resignation for Good Reason (each as defined in the Severance Plan), Mr. Ferri was entitled to receive (i) a lump-sum cash payment equal to 1.25 times his base salary (1.5 times his base salary if such termination occurs during the Change in Control Protection Period (as defined in the Severance Plan)), (ii) a pro-rated portion of his Target Cash Bonus (as defined in the Severance Plan) for the year of termination (1.5 times his Target Cash Bonus if such termination occurs during the Change in Control Protection Period), (iii) healthcare continuation coverage or reimbursement of premiums for 18 months following termination, and (iv) continued vesting of outstanding time-based equity awards (or acceleration of vesting of outstanding time-based equity awards if such termination occurs during the Change in Control Protection Period), in each case, subject to Mr. Ferri’s execution and non-revocation of a release of claims and Mr. Ferri’s continued compliance with applicable restrictive covenants, including 18 month post-termination non-competition and non-solicitation covenants and perpetual confidentiality covenants. The Severance Plan also provides that, in the event of the termination of Mr. Ferri’s employment due to death or Disability (as defined in the Severance Plan), Mr. Ferri will be entitled to receive (i) healthcare continuation coverage or reimbursement of premiums for 18 months following termination, and (ii) acceleration of vesting of outstanding time-based equity awards.
On October 18, 2023, the Company announced the termination of Mr. Ferri as Chief Corporate Development Officer of the Company without cause, effective October 13, 2023. On October 16, 2023, in connection with the termination of Mr. Ferri’s employment, the Company and Mr. Ferri entered into a letter agreement regarding such termination of employment and the provision of transition services by Mr. Ferri to the Company following such termination (the “Ferri Termination Agreement”). Pursuant to the Ferri Termination Agreement, Mr. Ferri was eligible to receive the severance payments and benefits provided for under the Severance Plan in connection with a Qualifying Termination (as defined in the Severance Plan), subject to his execution and non-revocation of a release of claims, and Mr. Ferri remained eligible to receive any previously earned but not yet paid acquisition transaction bonus payments pursuant to his previous employment agreement with the Company. At a meeting of the Compensation Committee of the Company’s Board of Directors (the “Compensation Committee”) on October 18, 2023, the Compensation Committee determined that, notwithstanding the terms of the Severance Plan and the Ferri Termination Agreement, it was advisable and in the best interests of the Company and its stockholders to make all of the payments due to Mr. Ferri in connection with and following the termination of his employment under the Severance Plan and the Ferri Termination Agreement in one lump-sum, as soon as reasonably practicable following (and, in any event, no more than 10 business days following) the expiration of the Revocation Period (as defined in the Ferri Termination Agreement).
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Gary Anderson
On December 16, 2022, the Company and Mr. Anderson entered into a letter agreement (the “Anderson Employment Agreement”), that governed the terms of his employment as General Counsel and Corporate Secretary with the Company. Under the Anderson Employment Agreement, Mr. Anderson’s base salary was $500,000, and he was eligible to receive an annual discretionary incentive bonus, payable in cash and/or equity, based on individual and Company performance for each year.
Under the
Anderson Employment
Agreement, Mr. Anderson was eligible to participate in the Severance Plan, pursuant to which, in the event of the termination of Mr. Anderson’s employment by the Company without Cause or Mr. Anderson’s resignation for Good Reason (each as defined in the Severance Plan), Mr. Anderson was entitled to receive (i) a lump-sum cash payment equal to 1.25 times his base salary (1.5 times his base salary if such termination occurs during the Change in Control Protection Period (as defined in the Severance Plan)), (ii) a pro-rated portion of his Target Cash Bonus (as defined in the Severance Plan) for the year of termination (1.5 times his Target Cash Bonus if such termination occurs during the Change in Control Protection Period), (iii) healthcare continuation coverage or reimbursement of premiums for 18 months following termination, and (iv) continued vesting of outstanding time-based equity awards (or acceleration of vesting of outstanding time-based equity awards if such termination occurs during the Change in Control Protection Period), in each case, subject to Mr. Anderson’s execution and non-revocation of a release of claims and Mr. Anderson’s continued compliance with applicable restrictive covenants, including 18 month post-termination non-competition and non-solicitation covenants and perpetual confidentiality covenants. The Severance Plan also provides that, in the event of the termination of Mr. Anderson’s employment due to death or Disability (as defined in the Severance Plan), Mr. Anderson will be entitled to receive (i) healthcare continuation coverage or reimbursement of premiums for 18 months following termination, and (ii) acceleration of vesting of outstanding time-based equity awards.
The Company and Mr. Anderson agreed to terminate Mr. Anderson's employment as General Counsel and Corporate Secretary of the Company, effective on October 19, 2023. On November 17, 2023, in connection with the termination of Mr. Anderson's employment, the Company and Mr. Anderson entered into a letter agreement regarding the terms of such termination of employment (the “Anderson Termination Agreement”). Pursuant to the Anderson Termination Agreement, Mr. Anderson received, subject to his execution and non-revocation of a release of claims and continued compliance with the terms of the Anderson Termination Agreement, a separation payment equal to $1,501,258, payable in a lump sum. The Anderson Termination Agreement also provides that Mr. Anderson will be subject to a twelve-month post-termination non-solicit covenant as well as perpetual non-disparagement and confidentiality covenants.
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DIRECTOR COMPENSATION
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We have approved and implemented a compensation program for our non-employee directors that consists of annual retainer fees and long-term equity awards. Each non-employee director will receive an annual director fee of $35,000, as well as an additional annual fee of $10,000 for service as the Lead Independent Director, an additional annual fee of $90,000 for service as Non-Employee Chairman, an additional annual fee of $20,000 for service as the chair of our Audit Committee, an additional fee of $15,000 for service as the chair of our Compensation Committee, an additional fee of $9,000 for service as the chair of our Nominating and Corporate Governance committee, an additional annual fee of $9,000 (excluding the chair) for service on our Audit Committee, an additional annual fee of $6,000 (excluding the chair) for service on our Compensation Committee, and an additional annual fee of $5,000 (excluding the chair) for service on our Nominating and Corporate Governance Committee, each earned on a quarterly basis.
Each non-employee director who serves on the Board as of the date of the annual meeting will receive an annual RSU award with a grant date value of $125,000 (except for the lead independent director and chairman, who will receive $135,000), with prorated awards made to directors who are initially appointed or elected to the Board on a date other than the date of an annual meeting. Annual and initial awards will vest in full on the earlier of (i) the date immediately preceding the date of our annual stockholder meeting immediately following the date of grant and (ii) the first anniversary of the grant date. In addition, each director will be reimbursed for out-of-pocket expenses in connection with their services.
Effective August 2, 2023, the Board amended the non-employee director compensation program to provide for an increase to the annual cash director fee to $60,000 (with an additional annual fee of $15,000 for service as the lead independent director or an additional annual fee of $30,000 for service as the Non-Employee Chairman of the Board), an increase to the additional annual fee for service as the chair of our Nominating and Corporate Governance committee to $12,000, and a decrease to the annual RSU award grant date value to $125,000 (or $135,000 for the lead independent director and chairman).
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The following table contains information concerning the compensation of our directors for the fiscal year ended December 31, 2023:
| Name |
Fees Earned
or Paid
in Cash
(1)
($)
|
Stock
Awards
(2)
($)
|
Total
($) |
|||||||||||||||||
|
F. Porter Stansberry
(3)
|
6,522 | 101,030 | 107,552 | |||||||||||||||||
| Van Simmons | 81,614 | 125,000 | 206,614 | |||||||||||||||||
| Matthew Smith | 41,076 | 140,000 | 181,076 | |||||||||||||||||
| Glenn Tongue | 53,775 | 140,000 | 193,775 | |||||||||||||||||
| Matthew Turner | 44,935 | 140,000 | 184,935 | |||||||||||||||||
| Manuel Borges | 34,500 | — | 34,500 | |||||||||||||||||
| Mark Gerhard | 78,929 | — | 78,929 | |||||||||||||||||
| Riaan Hodgson | 63,913 | — | 63,913 | |||||||||||||||||
| Paul Idzik | 46,500 | — | 46,500 | |||||||||||||||||
__________________
(1)
Amounts reflect the cash retainer fees earned by our directors in fiscal year 2023.
(2)
Amounts reflect the full grant-date fair value of RSUs granted in fiscal year 2023, determined in accordance with FASB ASC Topic 718. We provide information regarding the assumptions used to calculate the value of stock awards in Note 11 to our audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023. Amounts do not include RSUs that were forfeited as of December 31, 2023.
(3)
Mr. Stansberry was appointed to the Board in September 2023, and accordingly, he earned cash retainer fees and was granted RSUs as compensation for his Board service prior to his appointment as Chief Executive Officer in October 2023.
The table below shows the aggregate numbers of unvested stock awards held as of December 31, 2023 by each director who served during fiscal year 2023.
| Name |
Unvested Restricted Stock Units Outstanding at Fiscal Year End
(#) |
|||||||
| F. Porter Stansberry | 73,209 | |||||||
| Van Simmons | 62,500 | |||||||
| Matthew Smith | 62,500 | |||||||
| Glenn Tongue | 62,500 | |||||||
| Matthew Turner | 62,500 | |||||||