The post-termination vesting rights for the PSUs granted to Mr. Bailey in connection with his transition to Chief Financial Officer are substantially the same as the rights that apply to PSUs previously granted to other NEOs as part of the 2025 annual awards described above. Post-termination vesting for PSUs are described further below under the heading “Executive Compensation Tables—Potential Payments Upon Termination or Change in Control—Equity Awards.”
Fiscal 2026 Executive Compensation
In February 2026, the Compensation Committee determined the salary and incentive compensation opportunities for our NEOs for 2026. The Compensation Committee considered data regarding compensation for the Company’s peer group for 2026 and third-party survey data. The Compensation Committee also considered the Company’s business strategy and prior feedback from stockholders related to the Company’s executive compensation program, as well as input from Meridian, and with respect to NEOs other than himself, Mr. Cobb.
The Compensation Committee approved increases of $25,000, $25,000, $15,000 and $10,000 to the salaries for Messrs. Cobb, Bailey, Fiarman and Iverson, respectively, effective in April 2026. The Compensation Committee also approved an increase to 75% (from 70%) for Mr. Fiarman’s annual incentive plan opportunity for fiscal 2026, as well as long-term equity incentive awards, consisting of 50% PSUs and 50% RSUs, having aggregate grant date fair values of $6,600,000, $1,500,000, $1,500,000, $1,600,000 and $1,500,000 for Mr. Cobb, Mr. Bailey, Dr. Ganesh, Mr. Fiarman and Mr. Iverson, respectively, to be granted in March 2026. The terms and conditions of the PSUs are tied to pre-set 3-year financial goals relating to revenue (relating to 50% of the total PSU award) and Adjusted EBITDA (relating to 50% of the total PSU award), with a minimum achievement level of 0% and a maximum achievement level of 200%.
Additional Information About Our Compensation Practices
Sign-On, Retention and Discretionary Bonuses
From time to time, we may award sign-on, retention and discretionary bonuses, in the form of cash, RSUs or stock options, to attract or retain executive talent. Generally, sign-on bonuses are used to incentivize candidates to leave their current employers or may be used to offset the loss of unvested compensation they may forfeit as a result of leaving their current employers.
Employment-Related Agreements
Other than Mr. Cobb, none of our NEOs have employment agreements relating to their employment with the Company. Mr. Cobb was hired to serve as our CEO pursuant to an employment agreement with us dated May 19, 2022 and commenced employment on June 1, 2022. From time to time, we may extend offer letters to our NEOs in connection with their recruitment or promotion. For 2025, Dr. Ganesh was offered the position of Senior Vice President and Chief Technology Officer pursuant to an offer letter dated May 21, 2025 and commenced employment on July 14, 2025. The material terms of Mr. Cobb’s employment agreement and Dr. Ganesh’s offer letter are described below under “Executive Compensation Tables—Grants of Plan-Based Awards for Fiscal 2025—Narrative Disclosure to Summary Compensation Table and Grants of Plan-Based Awards Table—Employment Agreement.”
Retirement Benefits
Our employees, including the NEOs, are generally eligible to participate in the Frontdoor, Inc. 401(k) Plan (the “Frontdoor 401(k) Plan”), as it may be amended from time to time. The Frontdoor 401(k) Plan is a tax qualified 401(k) defined contribution plan. We made a “safe harbor” matching contribution for our employees who contributed during the 2025 plan year.
Employee Benefits and Executive Perquisites
We offer a variety of health and welfare programs to all eligible employees, including the NEOs. The NEOs are eligible for the same health and welfare benefit programs on the same basis as the rest of our employees, including medical, dental and vision care coverage; life insurance coverage; short- and long-term disability; accidental death and dismemberment; and legal services. In addition, pursuant to our 2019 Employee Stock Purchase Plan (the “ESPP”), eligible employees, including the NEOs, may purchase Common Stock, subject to Internal Revenue Service limits, during specified offering periods at a purchase price equal to 85% of the closing price per share on the day preceding the last day of the applicable offering period.