CEO Michael Praeger's compensation package at AvidXchange Holdings Inc. (NASDAQ: AVDX) totaled $7.9 million in 2021, based largely on option and stock awards related to the company’s initial public offering last year.
The Charlotte company went public Oct. 13 with an IPO valued at $660 million. AvidXchange filed its first annual proxy statement on April 29 that, among other things, outlines the pay package of its top executives.
The filing with the U.S. Securities and Exchange Commission says that in 2021, Praeger received a base salary of $473,615, option awards valued at $3.5 million, stock awards valued at $3.46 million and a payment of $469,319 from the company’s incentive plan. He also got $11,702 in “other compensation,” consisting of a matching contribution to AvidXchange’s 401(k) plan.
The awards represent the estimated value of options and restricted stock units granted to Praeger going back to 2020. That includes the value of awards made when the company’s stock was privately held, converting those awards to its publicly traded shares.
Praeger's total pay package was more than three times the $2.4 million he got in 2020. The filing says his total package that year included a salary of $404,077, $899,000 in option awards, $765,003 in stock awards and an incentive payment of $319,594. He also received other compensation of $13,900.
The total package does not represent Praeger’s “take-home” pay. The option and stock awards vest over time, and their ultimate value depends on performance of the company stock.
