This is why an underperforming company should not award an interim CEO with unjustified amounts of short term RSUs. Vesting RSUs simply reward mediocrity amidst a sharp shareholder value decline. Plus will also pressure the stock downward when immediately sold upon vesting for tax accounting.
Citrix stock is down 15% since the CEO transition announcement in just 3+ trading days.
Stock collapses from $160 to $90 and the interim CEO still has a deep in the money 200,000 RSU share grant per the 8K SEC filing. 200,000 shares at $95 = $19M and $80 still equals $16M.
Putting this into perspecitve, the RSU grant is nearly 0.2% (or 1/500th) of the entire float of Citrix stock as compensation for twelve months - or less time if a permanent CEO is named in the next twelve months.
There is high potential for massive reward with terrible shareholder performance. Citrix stock performance is in the bottom 1% of S&P 500 since March, 2020 yet vested RSUs have been worth tens of millions to the current and outgoing members of the executive team.
Elliott + other hedge funds can also short shares in the short term and manipulate the market price and float without greatly damaging the large exec RSU share compensation.
If exec comp was based largely on stock options there could potentially be more exec comp upside as the executive team is only rewarded for a job well done when the shareholders also benefit.