Archie Black, SPS Commerce Inc. president, CEO
Total compensation: $8,107,154 for the year ended Dec. 31
Non-equity incentive pay: $890,000
Other compensation: $8,250
Exercised stock options: $4,014,277
Value realized on vesting shares: $2,699,627
New stock options: 32,334
Median employee pay: $73,759
CEO pay ratio: 61:1
Total 2018 shareholder return: 69.5%
Note: Black and other executives at Minneapolis-based SPS Commerce earned the maximum annual cash incentive award for the year as the provider of cloud-based supply chain management systems for retailers exceed the maximum revenue and earnings targets for the year.
In 2018 SPS had revenue of $248.2 million, up 13%, and its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was $51.3 million, up 50 percent for the year. For executives to earn the maximum bonus, the company needed to exceed $248.15 million in revenue and at least $46.15 million in adjusted EBITDA.
Most of Black’s compensation, $6.7 million, was from previously issued long-term equity awards that he either exercised or vested during 2018.
SPS also disclosed in its proxy that directors Melvin Keating and Michael McConnell would not be standing for re-election to the board of directors and the board size will move from nine members to seven.
Keating and McConnell joined the board last year as part of a shareholder agreement with Legion Partners Holdings LLC and Ancora Advisors LLC. SPS said in a release Wednesday that the agreement with Legion Partners had expired 30 days before the director nomination deadline for this year.