Similarweb Unveils Incoming CEO Michael Ackerman's Compensation Package

Or Ofer, founder and CEO of Similarweb, announced last May his intention to step down after nearly 20 years. About two weeks ago, Similarweb announced the appointment of his successor, Michael Ackerman, who will assume the role in November. Last week, the company published the compensation package for Ackerman, pending shareholder approval.

Similarweb has developed a platform for analyzing online user behavior, providing clients with data to identify business opportunities and competitive threats. In his most recent role, Ackerman served as Chief Business Officer at ad-tech firm Digital Turbine, and previously held senior positions at companies including Uber and Pinterest. Similarweb noted that at the beginning of his career, he served as a sales and strategy manager at the Israeli startup Kenshoo (now Skai).

Compensation Package and Equity

The company is asking shareholders to approve an annual base salary of $550,000 for Ackerman, an annual bonus that may reach up to $550,000 subject to meeting targets, and a one-time signing bonus of $500,000—totaling $1.6 million in cash.

In addition, Ackerman will receive an equity compensation package divided into three parts with a maximum value of $10 million:

• Restricted stock units (RSUs) valued at $3 million, 50% of which will vest after one year and the rest quarterly thereafter, provided he remains in office.

• Performance-based RSUs valued at $5 million.

• Stock price-dependent RSUs valued at $2 million, with half vesting when the stock reaches $15 and the other half at $20 (compared to $9.05 today). In cases where the stock reaches $13-$30, he will receive 150%-200% of the amount.

Similarweb's board of directors believes that Ackerman possesses the skills, experience, and strategic vision required to lead the company into its next growth phase. They noted that, according to an external comparative analysis, the proposed compensation terms place him in the 25th-50th percentile compared to peer companies.

Transition and Founder Share Sales

Founder Or Ofer will step down next month from the CEO position he held since founding the company, guiding it through its New York IPO in 2021, the subsequent drop in valuation with the cooling of the tech hype, the recovery, and recent concerns over AI that again impacted software stocks.

Last April, the stock hit a low before rebounding and soaring by 288% to a current market capitalization of about $800 million. Ofer and other company directors expressed confidence at the time by purchasing shares, ultimately enjoying a handsome profit, mostly on paper.

"Ofer purchased shares in May-June at prices of $3.2 to $4.15 for a total of about $407,000, and in August-September sold shares for about $6.7 million at more than double the price of around $7.7 to $8.9, mostly under a blind sale program."