- Bumble went public Thursday at an opening price of $76 per share.
- At this price, CEO and founder Whitney Wolfe Herd’s stake in Bumble is worth $1.6 billion.
- The company was previously valued as high as $8 billion, according to Bloomberg.
- Visit the Business section of Insider for more stories.
Bumble went public on Thursday at an opening price of $76 per share, far above its target price of $43 per share. At this price, the company has a market cap of $8.3 billion.
Whitney Wolfe Herd, the CEO and founder of Bumble, now has a stake in the firm worth $1.6 billion.
Herd is a rarity in the world of startups — historically, only about 20 women have founded and led their companies through an IPO, according to an Insider analysis. In 2020, for example, more than 400 companies went public. Only a few of these were led by women.
When a company plans to go public, the SEC requires the firm to submit a filing called an S-1. This filing includes information about executive pay and how many shares they hold in the company. Let’s dig into what we know about Bumble’s executives.
More than 92% of each current executive’s compensation was made up of equity
In its S-1, the firm reported compensation for its CEO Herd, its CFO Anuradha Subramanian, and its president Tariq Shaukat, along with its former CFO Idan Wallichman.
On average, the current executives earned $12.3 million, a vast majority of which was in equity awards. For each current executive, more than 92% of total compensation consisted of equity.
The chart below shows compensation for Bumble’s executive officers listed in the S-1, split out by compensation element. Hold your cursor over the labels at the top to highlight the different parts of the executives’ compensation, and reference the bulleted list at the bottom of the page for more information on each compensation element.
Herd’s stake was worth $1.6 billion at the opening price of $76 per share
As of the latest filing, Herd owns 21,537,552 shares of common stock (called “common units” in the S-1), which will represent 16% of the voting power at Bumble if all goes to plan. This stake was worth $1.6 billion at its opening price.
Other large individual shareholders are Shaukat and Ann Mather, who is the chair of the board. Shaukat owns 73,532 shares and Mather owns 33,414 shares, which were worth $5.6 million and $2.5 million at the opening price, respectively.
What the terms in the table mean:
- Salary: The salary an executive earns in a given year.
- Stock awards: Equity awards based on achievement within a firm’s long-term incentive plan. Long-term incentives are also considered “at-risk” pay. Stock and option awards are two different types of equity awards — stocks are direct equity awards, while options give the executive the right to buy shares at a specific price.
- Bonus/NEIP: Typically cash grants for performance in the short term. Bonuses are typically one-off awards, while anything in the column titled “non-equity incentive plan” typically means the awards are granted as part of a firm’s short-term incentive plan and granted in cash (hence the “non-equity” label). Short-term incentives are thought of as part of “at-risk” pay, meaning that the executive must hit goals or benchmarks to receive the award.
- Other compensation: This number includes any value from the compensation data related to pension plans or non-qualified deferred-compensation earnings. It also includes any payments designated as “other compensation,” which can include payment for things like personal or home security, employees’ benefits plans, country-club fees, fees related to use of company aircraft, and even relocation expenses.
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