Monday.com Proposes 20% Workforce Reduction and Co-CEO Compensation Vote

Monday.com plans to reduce its global workforce by approximately 20% as part of a reorganization centered around AI, and will present a proposal to increase compensation for its co-CEOs at the upcoming shareholder meeting. According to a Form 6-K filed on July 22, the restructuring aims to align the organizational structure with the 'AI Work Platform' strategy. The estimated net costs related to the restructuring are between $45 million and $55 million, which includes severance and employee benefits. The co-CEO compensation proposal is set to be voted on at the shareholder meeting on August 7. If approved, the total target compensation for Roy Mann and Eran Jinman will gradually increase to $10.4 million in 2027, $13.9 million in 2028, and $14.6 million in 2029. The compensation is designed to be stock-based, with annual stock compensation limits set at $9.5 million for 2027, $13 million for 2028, and $13.65 million for 2029. The board argued that the existing total compensation for the two co-CEOs is below the 25th percentile of comparable companies, necessitating adjustments. The AI transition plan was formalized on May 6, and the revenue growth forecast remains at 19-20%.

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