A big year for management
SoFi’s management has a LOT riding on 2025. Yes, it’s the transitional year to see how they get to their 2026 guidance, but
it’s also the last full year they have to get push the stock higher before their Performance Stock Units (PSUs) expire.
For those who aren’t aware, senior management like CEO Anthony Noto, CFO Chris Lapointe, and Galileo CEO Derek White have stock that only vests if they hit certain stock price thresholds in the next year and a half.
The PSUs are broken up into three equal buckets that are only awarded if the stock price exceeds a volume-weighted 90 day trading average of $25, $35, and $45 on or before Jun 1, 2026.
So to realistically have a chance at receiving all their PSUs, they need the stock to already be over $35/share by this time next year.
How much is it worth to them? Noto could get a total of 6.43M shares. Lapointe can receive up to 831k shares, and White would earn 750k shares. Here is how much their net worth increases with each individual award, and the growth in their total cumulative net worth if the stock trades at an average price of $45/share before the 2026 target date.
So there are approximately 360 million reasons why they are going to push as hard as possible to deliver the goods in 2025. For those who think this is out of reach, remember that at this time last year, Robinhood was trading in the $10-$11 range and today is at $46. Management has always been in the shareholder’s corner, but their interests are especially aligned over the next 16 months.
As I went through these projections, I ended up very enthused about the prospects of Q4 being a true inflection point for the company.
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I trimmed some of my PLTR 73c Jan 31 calls earlier in the day to secure profit.
