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  "documentTitle": "Box, Inc. (BOX)",
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  "notes": "Uses strong, emotive language ('Astonishingly and unfortunately', 'reasons we cannot begin to understand') to frame the Board's decision as a failure of governance.",
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      "text": "The Compensation Committee is clearly not focused on aligning incentives with stockholder returns",
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      "text": "In fact, these executives earn a portion of this compensation for every three months that they remain employed, without any regard for financial or stock price performance.",
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      "text": "For reasons we cannot begin to understand, the Board actively chose to eliminate any tie between stockholder value creation and equity compensation for executive officers.",
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      "text": "In prior years, Box did not have any operational metrics as part of its equity compensation plan, instead solely using stock options with anemic performance criteria based on absolute stock price returns.",
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      "text": "For FY2021, the Compensation Committee revised the equity compensation program to be comprised solely of time-based RSUs.",
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      "text": "This means that in order for executives to receive millions of dollars of incentive compensation, they must simply remain employed for the next four years.",
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      "text": "While the Company's proxy statement alludes to the fact that this decision was made due to the uncertainty of the current environment, that sentiment does not align with management's public commentary regarding Box's outlook or the Company's recent statement that Box \"is in the strongest financial position in the company's history\" and \"better positioned than ever to drive [its] next phase of growth.\"",
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      "text": "Even if financial metrics were difficult to implement, Relative TSR is a widely-used and accepted performance metric.",
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      "text": "We believe these actions indicate either a complete lack of understanding of how to create targeted and effective long-term incentive compensation programs or a stunning disregard for aligning compensation with stockholder returns.",
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      "text": "In its recently filed proxy statement, Box disclosed details of its FY2021 compensation program. Astonishingly and unfortunately, the Company's compensation practices got worse.",
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      "text": "Box “is in the strongest financial position in the company’s history” and “better positioned than ever to drive [its] next phase of growth.” — Company transcripts",
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      "text": "Source: Company filings, Company transcripts.",
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      "text": "Box's Long-Term Equity Compensation Program Is Poorly Structured",
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