Beachbody boosts CFO Ramberg’s severance package

Published 28/02/2025, 22:34
Beachbody boosts CFO Ramberg’s severance package

The Beachbody Company, Inc. (NYSE:BODI), a $54.42 million market cap company with annual revenues of $451.43 million and impressive gross profit margins of 67%, has amended the severance agreement for its Interim Chief Financial Officer, Brad Ramberg, in recognition of his extended tenure and increased responsibilities at the firm. The new terms were outlined in a recent 8-K filing with the Securities and Exchange Commission. According to InvestingPro analysis, the company currently trades below its Fair Value.

According to the filing, if Ramberg’s employment is terminated without "Cause" or if he resigns for "Good Reason," as defined in the agreement, he will be entitled to enhanced severance benefits. These include half of his annual base salary paid over six months, or the full salary if termination occurs within 12 months after a change in control event, in addition to 12 months of subsidized healthcare coverage. This comes at a time when InvestingPro data shows the company’s current ratio at 0.64, indicating that short-term obligations exceed liquid assets.

Moreover, the agreement stipulates an additional 12 months of vesting for unvested time-based equity awards. In the event of a change in control, Ramberg would receive full accelerated vesting for all such awards. The benefits are contingent upon Ramberg’s execution of a general release of claims in favor of the company.

The updated severance package reflects Ramberg’s 18-year history with Beachbody, a nonstore retailer headquartered in El Segundo, California. This move could be seen as reinforcing the company’s commitment to its leadership team during a period of strategic evolution.

The specifics of the severance letter agreement, dated February 24, 2025, will be disclosed in full as an exhibit to the current report on Form 8-K, which is incorporated by reference. This adjustment to the executive compensation plan comes as part of Beachbody’s ongoing efforts to align its executive incentives with the company’s performance and strategic goals. For deeper insights into Beachbody’s financial health and additional executive compensation metrics, InvestingPro subscribers have access to over 10 additional exclusive tips and comprehensive financial analysis.

This news is based solely on the press release statement from the SEC filing and does not include subjective assessments or speculative commentary.

In other recent news, The Beachbody Company, Inc. has announced significant developments affecting its executive leadership and corporate governance. The company revealed an increase in the annual base salary for its Executive Chairman, Mark Goldston, which will rise to $500,000 starting March 1, 2025, with a further increase to $700,000 contingent on the full repayment of the Blue Torch term loan. Additionally, Chief Operating Officer Kathy Vrabeck will retire effective April 1, 2025, marking a notable transition in the company’s leadership. No immediate successor has been named for Vrabeck, and the company has not disclosed further details regarding her replacement or the impact on operations.

In another update, Beachbody has amended its bylaws to comply with new SEC proxy rules, enhancing procedural requirements for stockholder meetings and clarifying proxy solicitation practices. The changes include the use of non-white proxy cards by stockholders soliciting proxies, reserving white cards for the Board of Directors. These amendments reflect Beachbody’s commitment to modernizing its corporate governance practices and ensuring transparency in its interactions with stockholders. The details of these bylaw changes are documented in the Second Amended and Restated Bylaws filed with the SEC.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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