Shake Shack Reports Officer Changes, Comp Arrangements

TL;DR

**Shake Shack just announced executive changes and new pay deals, watch for strategic shifts.**

AI Summary

Shake Shack Inc. filed an 8-K on January 26, 2024, to report the departure or election of directors or certain officers and changes to compensatory arrangements for certain officers. This filing also indicates the company's Class A Common Stock, with a par value of $0.001, is traded on the New York Stock Exchange under the symbol SHAK. This matters to investors because changes in leadership and executive compensation can signal shifts in company strategy, financial health, or governance, potentially impacting future stock performance.

Why It Matters

Changes in executive leadership and compensation can influence a company's strategic direction and operational efficiency, directly affecting its financial outlook and investor confidence.

Risk Assessment

Risk Level: medium — Changes in leadership and compensation can introduce uncertainty regarding future company performance and strategic direction, posing a moderate risk to investors.

Analyst Insight

A smart investor would monitor subsequent filings or press releases for details on the specific officers involved and the nature of the compensatory arrangements, as these details will provide clearer insight into the company's future direction and potential impact on its stock.

Key Numbers

• $0.001 — Par Value per Share (The par value of Shake Shack's Class A Common Stock.)

Key Players & Entities

• Shake Shack Inc. (company) — registrant
• New York Stock Exchange (company) — exchange where stock is registered
• $0.001 (dollar_amount) — par value of Class A Common Stock

Forward-Looking Statements

• Shake Shack's stock (SHAK) may experience short-term volatility due to investor reaction to leadership and compensation changes. (SHAK) — medium confidence, target: 2024-03-26

FAQ

Key Financial Figures

• $0.001 — tered Class A Common Stock, par value $0.001 SHAK New York Stock Exchange Indica

Filing Documents

• tm244149d1_8k.htm (8-K) — 36KB
• tm244149d1_ex10-1.htm (EX-10.1) — 46KB
• image_001.jpg (GRAPHIC) — 5KB
• 0001104659-24-007256.txt ( ) — 277KB
• shak-20240126.xsd (EX-101.SCH) — 3KB
• shak-20240126_lab.xml (EX-101.LAB) — 33KB
• shak-20240126_pre.xml (EX-101.PRE) — 22KB
• tm244149d1_8k_htm.xml (XML) — 3KB

02 Departure of Directors

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. On January 26, 2024, Shake Shack Inc. and SSE Holdings, LLC (collectively, the "Company") and Randall Garutti, the Company's Chief Executive Officer, entered into a Transition and Advisory Agreement (the "Transition and Advisory Agreement"). As previously disclosed, Mr. Garutti has informed the Company's Board of Directors that he will retire from the Company in 2024 as its Chief Executive Officer and as an executive Board member upon the selection of his successor, but that he will serve as an advisor following this time through the end of 2024 to ensure a proper transition. The terms of the Transition and Advisory Agreement supplement and, where noted, modify, the Amended and Restated Employment, entered into on October 23, 2018, between Mr. Garutti and the Company (the "Employment Agreement"). Pursuant to the Transition and Advisory Agreement, Mr. Garutti has agreed to serve as the Company's Chief Executive Officer and as an executive Board member until the earlier of the commencement of his successor's employment or May 24, 2024 (the "Resignation Date"). Mr. Garutti has also agreed in good faith not to resign without Good Reason (as defined in the Employment Agreement) prior to the Resignation Date. Through this time period, Mr. Garutti shall continue to receive all the rights and benefits set forth in Section 3 of the Employment Agreement, except that Mr. Garutti shall not be eligible for an Annual Equity Award for 2024, and notwithstanding anything in the Employment Agreement, Mr. Garutti shall receive a partial bonus for the first half of 2024 in an amount equal to the product of (A) the actual bonus that he would otherwise have been entitled to receive absent his termination of employment on the Resignation Date and (B) the ratio of (x) the number of days elapsed during the first half of 2024 through

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Shake Shack Inc. (Registrant) Dated: January 26, 2024 By: /s/ Ronald Palmese, Jr. Ronald Palmese, Jr. Chief Legal Officer

View Full Filing

View this 8-K filing on SEC EDGAR