WW INTERNATIONAL, INC. Stock Compensation Disclosure
Incentive Compensation Plans - Predecessor
On May 6, 2014, the Company’s shareholders approved the 2014 Stock Incentive Plan (as amended and restated, the “2014 Plan”). The Company’s long-term equity incentive compensation program has historically included awards of time-vesting non-qualified stock options and/or restricted stock units (“RSUs”) (including performance-based stock units (“PSUs”) with both time- and performance-vesting criteria. From time to time, the Company has granted fully-vested shares of its common stock to individuals in connection with special circumstances.
Under the 2014 Plan, grants could take the following forms at the Compensation Committee’s discretion: non-qualified stock options, incentive stock options, stock appreciation rights, RSUs, restricted stock and other stock-based awards. As of June 24, 2025 (Predecessor), the maximum number of shares of common stock available for grant under the 2014 Plan was 12,500, subject to increase and adjustment as set forth in the 2014 Plan.
The Company issued common stock for share-based compensation awards from treasury stock. The total compensation cost that was charged against income for share-based compensation awards was $4,018, $7,583 and $10,715 for the period from December 29, 2024 through June 24, 2025 (Predecessor) and the fiscal years ended December 28, 2024 (Predecessor) and December 30, 2023 (Predecessor), respectively. The total income tax benefit recognized in the Company’s consolidated statements of operations for all share-based compensation awards was $0, $1,197 and $1,850 for the period from December 29, 2024 through June 24, 2025 (Predecessor) and the fiscal years ended December 28, 2024 (Predecessor) and December 30, 2023 (Predecessor), respectively. The tax benefits realized from options exercised and RSUs and PSUs vested totaled $0, $658 and $1,287 for the period from December 29, 2024 through June 24, 2025 (Predecessor) and the fiscal years ended December 28, 2024 (Predecessor) and December 30, 2023 (Predecessor), respectively. No compensation costs were capitalized. As of June 24, 2025 (Predecessor), there was no total unrecognized compensation cost related to stock options and RSUs granted under the 2014 Plan. Additionally, during the fiscal year ended December 30, 2023 (Predecessor), the Company charged $3,882 of compensation costs against income for share-based compensation expense attributable to post combination vesting in relation to the Sequence acquisition. See Note 6 for additional information on the Company’s acquisitions. Such amounts were included as a component of selling, general and administrative expenses.
Option Activity
A summary of all option activity for the period from December 29, 2024 through June 24, 2025 (Predecessor) is presented below.
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Weighted |
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Weighted |
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Average |
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Average |
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Remaining |
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Aggregate |
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Exercise |
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Contractual |
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Intrinsic |
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Shares |
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Price |
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Life (Yrs.) |
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Value |
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Outstanding at December 28, 2024 (Predecessor) |
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5,032 |
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$ |
33.12 |
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Granted |
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— |
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$ |
— |
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Exercised |
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— |
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$ |
— |
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Cancelled |
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(5,032 |
) |
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$ |
33.12 |
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Outstanding at June 24, 2025 (Predecessor) |
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— |
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$ |
— |
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— |
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$ |
— |
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Exercisable at June 24, 2025 (Predecessor) |
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— |
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$ |
— |
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— |
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$ |
— |
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The total intrinsic value of all options exercised was $0, $0 and $248 for the period from December 29, 2024 through June 24, 2025 (Predecessor) and the fiscal years ended December 28, 2024 (Predecessor) and December 30, 2023 (Predecessor), respectively.
Cash received from stock options exercised during the period from December 29, 2024 through June 24, 2025 (Predecessor) and the fiscal years ended December 28, 2024 (Predecessor) and December 30, 2023 (Predecessor) was $0, $0 and $718, respectively.
Restricted Stock Unit Awards with Time-Vesting Criteria
RSUs were exercisable based on the terms outlined in the applicable award agreement. The RSUs generally vested over a period of to three years. The fair value of RSUs was determined using the closing market price of the Company’s common stock on the date of grant.
A summary of RSU activity under the 2014 Plan for the period from December 29, 2024 through June 24, 2025 (Predecessor) is presented below.
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Weighted Average |
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Grant Date Fair |
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Shares |
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Value |
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Outstanding at December 28, 2024 (Predecessor) |
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4,088 |
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$ |
2.06 |
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Granted |
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752 |
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$ |
0.17 |
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Vested |
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(3,843 |
) |
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$ |
1.58 |
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Forfeited |
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(997 |
) |
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$ |
2.51 |
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Outstanding at June 24, 2025 (Predecessor) |
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— |
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$ |
— |
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The weighted average grant date fair value of RSUs granted was $0.17, $1.32 and $7.43 for the period from December 29, 2024 through June 24, 2025 (Predecessor) and the fiscal years ended December 28, 2024 (Predecessor) and December 30, 2023 (Predecessor), respectively. The total fair value of RSUs vested during the period from December 29, 2024 through June 24, 2025 (Predecessor) and the fiscal years ended December 28, 2024 (Predecessor) and December 30, 2023 (Predecessor) was $6,063, $8,692 and $7,943, respectively.
Performance-Based Stock Unit Awards with Time- and Performance-Vesting Criteria
In the fiscal years ended December 28, 2024 (Predecessor) and December 30, 2023 (Predecessor), the Company granted 598 and 239 PSUs, respectively, having both time- and performance-vesting criteria. There were no grants under the 2014 Plan in the period from December 29, 2024 through June 24, 2025 (Predecessor).
A summary of PSU activity for the period from December 29, 2024 through June 24, 2025 (Predecessor) is presented below.
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Weighted Average |
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Grant Date Fair |
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Shares |
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Value |
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Outstanding at December 28, 2024 (Predecessor) |
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158 |
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$ |
1.86 |
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Granted |
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— |
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$ |
— |
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Vested |
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— |
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$ |
— |
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Forfeited |
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(158 |
) |
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$ |
1.86 |
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Outstanding at June 24, 2025 (Predecessor) |
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— |
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$ |
— |
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The weighted average grant date fair value of PSUs granted was $0.00, $1.86 and $13.80 during the period from December 29, 2024 through June 24, 2025 (Predecessor) and the fiscal years ended December 28, 2024 (Predecessor) and December 30, 2023 (Predecessor), respectively. There were no PSUs vested during the period from December 29, 2024 through June 24, 2025 (Predecessor) and the fiscal years ended December 28, 2024 (Predecessor) and December 30, 2023 (Predecessor).
Incentive Compensation Plans – Successor
On June 24, 2025, the Company’s Board approved the 2025 Stock Incentive Plan pursuant to the Plan approved by the Court. All awards granted by the Successor were made under the 2025 Stock Incentive Plan.
Under the 2025 Stock Incentive Plan, grants may take the following forms at the discretion of the Board’s Compensation Committee: option, stock appreciation rights, restricted stock, RSUs and other stock-based and cash awards (including performance-based awards) subject to the terms, conditions, and restrictions set forth in the 2025 Stock Incentive Plan and the respective award agreements issued to eligible participants. As of December 31, 2025, the maximum number of shares of common stock available for grant under the 2025 Stock Incentive Plan was 1,000, subject to increase and adjustment as set forth in the 2025 Stock Incentive Plan.
The RSUs and PSUs may provide participants with a right to receive dividend equivalent rights with respect to their restricted stock units. Such dividend equivalent rights may be paid in cash or in shares of our common stock and may be subject to the same vesting conditions applicable to the applicable award as described below.
The total compensation cost that has been charged against income for share-based compensation awards was $185 for the period from June 25, 2025 through December 31, 2025 (Successor). The total income tax benefit recognized in the Company’s consolidated statements of operations for all share-based compensation awards was $0 for the period from June 25, 2025 through December 31, 2025 (Successor). No compensation costs were capitalized. As of December 31, 2025 (Successor), there was $15,430 of total unrecognized compensation cost related to RSUs, PSUs and performance cash awards (“Performance Cash”) granted under the 2025 Stock Incentive Plan. That cost is expected to be recognized over a weighted average period of approximately 2.5 years.
Restricted Stock Unit Awards with Time-Vesting Criteria
The RSUs will be vested upon the satisfaction of continuous service to the Company based on the terms outlined in the applicable award agreement. The RSUs generally vest over a period of three years. The fair value of RSUs is determined using the closing market price of the Company’s common stock on the date of grant. The Company will recognize the compensation cost over the requisite service period on a straight-line basis.
A summary of RSU activity for the period from June 25, 2025 through December 31, 2025 (Successor) is presented below.
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Weighted Average |
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Grant Date Fair |
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Shares |
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Value |
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Outstanding at June 25, 2025 (Successor) |
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— |
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$ |
— |
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Granted |
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293 |
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$ |
26.24 |
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Vested |
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— |
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$ |
— |
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Forfeited |
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— |
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$ |
— |
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Outstanding at December 31, 2025 (Successor) |
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293 |
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$ |
26.24 |
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The weighted average grant date fair value of RSUs granted was $26.24 for the period from June 25, 2025 through December 31, 2025 (Successor). There were no RSUs vested during the period from June 25, 2025 through December 31, 2025 (Successor).
Performance-Based Stock Unit Awards with Time- and Performance-Vesting Criteria
During the period from June 25, 2025 through December 31, 2025 (Successor), the Company granted PSUs and Performance Cash, where the specific vesting terms and conditions are outlined in the applicable award agreement.
The PSUs and Performance Cash will be vested upon both the satisfaction of the time-based performance period and performance-based vested terms and conditions. The time-vesting criteria for these PSUs will be satisfied upon continued employment (with limited exceptions) on the last day of the performance period. The performance-vesting criteria will be based on the achievement of share price goals based on the Volume Weighted Average Price of the Company during the performance period and on the final day of the performance period. The Company recognizes the compensation cost for the PSUs and Performance Cash ratably, such that each tranche of the award is attributed separately. Additionally, since the Performance Cash will be cash-settled only and are liability-classified, the Company will remeasure the fair value at each reporting period until the award is settled.
PSUs
The Company estimated the weighted average grant date fair value of the PSUs granted during the period from June 25, 2025 through December 31, 2025 (Successor) to be $13.98. The Company estimated this fair value using a Monte Carlo simulation that used various assumptions that included expected volatility of 62.6%, a risk-free rate of 3.50%, an expected term of 3.0 years and a dividend yield of 0.00%. Expected volatility was based on the historical volatility of the Company’s peer group with a similar financial leverage. The risk-free interest rate was based on the U.S. Treasury yield curve in effect on the date of grant which most closely corresponds to the performance measurement period. The expected term represents the performance measurement period.
A summary of PSU activity for the period from June 25, 2025 through December 31, 2025 (Successor) is presented below.
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Weighted Average |
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Grant Date Fair |
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Shares |
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Value |
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Outstanding at June 25, 2025 (Successor) |
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— |
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$ |
— |
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Granted |
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112 |
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$ |
13.98 |
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Vested |
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— |
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$ |
— |
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Forfeited |
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— |
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$ |
— |
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Outstanding at December 31, 2025 (Successor) |
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112 |
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$ |
13.98 |
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There were no PSUs vested during the period from June 25, 2025 through December 31, 2025 (Successor).
Performance Cash
The Company estimated the fair value of the Performance Cash granted during the period from June 25, 2025 through December 31, 2025 (Successor) to be $6,349. The Company estimated this fair value using a Monte Carlo simulation that used various assumptions that included expected volatility of 62.5%, a risk-free rate of 3.55%, an expected term of 3.0 years and a dividend yield of 0.00%. Expected volatility was based on the historical volatility of the Company’s peer group with a similar financial leverage. The risk-free interest rate was based on the U.S. Treasury yield curve in effect on the date of grant which most closely corresponds to the performance measurement period. The expected term represents the performance measurement period. The Company recorded total liabilities for cash-settled share-based compensation awards of $75 as of December 31, 2025 (Successor), of which the entire amount was classified as long-term.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 16, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Mar 1, 2022 | |
About Stock Compensation Disclosures
Stock-based compensation disclosures detail the equity awards granted to employees and executives — including stock options, restricted stock units (RSUs), and performance shares — along with the valuation methods and assumptions used to expense them. This section reveals the true cost of talent retention and the alignment between management incentives and shareholder interests.
Key signals: total unrecognized compensation expense and its expected recognition period signal future earnings headwinds from already-granted awards. For stock options, examine Black-Scholes assumptions — expected volatility, risk-free rate, and expected term — as understating any of these reduces reported compensation expense. Compare stock compensation expense as a percentage of revenue against peers to assess dilution cost. Watch vesting schedules for acceleration clauses tied to change-of-control events. Performance-based awards with undemanding targets may indicate weak governance. Add back stock compensation to operating cash flow to calculate a more conservative free cash flow figure.