Monitor the upcoming proxy vote for stockholder approval — if denied, the option is forfeited entirely. The stock price must reach $21.00 (3x current) for the first tranche to vest, making this a long-term alignment mechanism with no near-term catalyst.
Price Chart
Executive Summary
Yext granted CEO Michael Walrath a 10-year, 11-million-share nonstatutory stock option with an exercise price of $7.00 per share, a premium to the $6.93 closing price on October 9, 2026. The option is entirely performance-based across 14 tranches with target prices ranging from $21.00 to $88.08, requiring sustained stock price appreciation over 180 consecutive days plus a 30-day confirmation period. The grant is contingent on stockholder approval within 12 months and is intended to serve as Walrath's sole equity compensation for the decade.
Key Facts
- Grant of 11,000,000 nonstatutory stock options to CEO Michael Walrath on October 11, 2026
- Exercise price of $7.00 per share (premium to $6.93 closing price on October 9, 2026)
- Total exercise price of $77,000,000
- 14 tranches with target prices from $21.00 to $88.08 per share
- Performance requires average stock price ≥ target over 180 consecutive days plus 30-day confirmation period
- Option is subject to stockholder approval within 12 months; forfeited if not approved
- No time-based vesting — all vesting is performance-based
- Intended as Walrath's sole equity compensation for the 10-year period
- Granted outside the 2016 Equity Incentive Plan
Financial Impact
Maximum potential dilution of 11,000,000 shares (approximately 8.5% of current shares outstanding based on ~130M shares) if all tranches are earned and exercised at $7.00 per share
Risk Factors
- Stockholder disapproval within 12 months would forfeit the entire option
- Extremely high performance hurdles — first tranche requires 203% stock price appreciation from grant date
- Potential dilution of up to 11 million shares if all tranches are earned
- Option is entirely performance-based with no time-based vesting — zero value if targets not met
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-065872 |
| Document: yext-20261011.htm | 0001628280-26-065872 |
| Document: 0001628280-26-065872-index-headers.html | 0001628280-26-065872 |
| Document: 0001628280-26-065872-index.html | 0001628280-26-065872 |
| Document: 0001628280-26-065872.txt | 0001628280-26-065872 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 14, 2026 13d ago | 8-K | $7.13 | awaiting T+20 | — | $7.22 (+1.26%) |
Sep 1, 2026 8w ago | 8-K | $6.53 $6.61 | ▲ +1.15% | ▼ −0.03% | $7.22 (+10.57%) |
Jul 13, 2026 15w ago | Insider Buy | $5.43 $5.71 | ▲ +5.16% | ▲ +2.67% | $7.22 (+32.97%) |
Jun 11, 2026 19w ago | 8-K | $4.06 $5.09 | ▲ +25.37% | ▲ +23.59% | $7.22 (+77.83%) |
Jun 2, 2026 21w ago | 8-K | $3.83 $4.95 | ▲ +29.24% | ▲ +30.24% | $7.22 (+88.51%) |
Apr 27, 2026 26w ago | DEFA14A | $3.93 $3.80 | ▼ −3.31% | ▼ −8.78% | $7.22 (+83.72%) |
Feb 24, 2026 35w ago | 8-K | $5.55 $4.38 | ▼ −21.08% | ▼ −15.85% | $7.22 (+30.09%) |
US Market Status
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