MarketWise CEO Porter Stansberry has announced a significant change in the company's compensation structure, as outlined in a recent press release. On July 1, employees will receive a substantial amount of stock in the form of Restricted Stock Units (RSUs), determined based on market prices relative to their existing salaries. This move is part of a larger plan to transform the company's marketing, branding, and pricing strategies, with the aim of creating a premium experience for customers and increasing shareholder value.
Stansberry emphasized the importance of this change, stating that the RSUs may not be worth much at present, but if employees help execute the new strategies, the company's stock price could see significant growth over time. He drew parallels to a previous equity grant in 2007, which ended up being worth more than three times the estimated value.
The press release also highlighted the company's historical performance, noting that MarketWise has demonstrated industry-leading results across various metrics, including growth and profitability, which ranked among the top Nasdaq-listed companies between 2017 and 2021. However, the CEO acknowledged that the company has not yet created a matching premium experience for most of its customers across all brands, which has contributed to current challenges.
Stansberry articulated a vision for the company to make its financial research and tools indispensable for investors while transforming the customer experience to create a passion for its products. To achieve this, he outlined a three-part test for all customer-facing elements, emphasizing the importance of inspiring trust, offering a premium experience, and encouraging repeat interactions with the brand.
Furthermore, Stansberry addressed the shift in the company's marketing strategy, moving away from a direct response approach focused solely on short-term returns on marketing spend. He highlighted the need to focus on the lifetime value of customers by attracting the right individuals with accurate investment research, at the right prices, and with the right products.
In light of these changes, the CEO emphasized the importance of intrinsic value and the company's commitment to not jeopardizing it for short-term gains. Stansberry drew from past experiences, particularly in building Stansberry Research, where a shift in strategy led to substantial improvements in the average lifetime value of subscribers, positioning the business as a leader in the industry.
Ultimately, the press release outlined MarketWise's new vision statement, which underscores the company's commitment to selling premium investment research, earning subscribers' trust, and building brand value through storytelling, customer service, and premium pricing. The CEO reiterated the company's dedication to its customers and emphasized the role of every employee in driving the company's success.
The market has reacted to these announcements by moving the company's shares -4.3% to a price of $1.55. For the full picture, make sure to review MarketWise's 8-K report.
