U.S. fitness chain operator Planet Fitness disclosed in a filing with the U.S. Securities and Exchange Commission (SEC) on Thursday that its new Chief Financial Officer (CFO), Sudhanshu Priyadarshi, will receive an equity award valued at $3 million upon joining, granted in the form of restricted stock units (RSUs). This arrangement marks the formal transition of the company's senior financial leadership team.

Executive Appointment and Transition Arrangements

According to the filing, Priyadarshi, who previously served as CFO of Keurig Dr. Pepper, officially assumed the role of CFO at Planet Fitness starting Thursday, while also taking on the position of President of International. Former CFO Jay Stasz stepped down on March 9, and company alumnus Tom Fitzgerald has served as interim CFO since March. To ensure a smooth transition, Fitzgerald will remain in an advisory capacity until mid-September, according to a press release issued by the company the same day.

Planet Fitness CEO Colleen Keating said in a statement: "Priyadarshi brings a results-oriented mindset, analytical capabilities, and a focus on building a winning culture, and I believe he will be an invaluable addition to our team during this important time. Sudhanshu's clear track record of driving growth will support Planet Fitness's focus on financial and operational execution and strengthen our position as an industry leader in affordable fitness."

Compensation Structure Details

The filing shows that Priyadarshi's annual base salary is $900,000, and he is eligible for an annual cash bonus with a target bonus of 115% of his base salary. In addition, he will receive a 2026 long-term incentive award with a grant value of $4 million, consisting of 50% restricted stock units (RSUs) and 50% performance stock units (PSUs).

Priyadarshi succeeds Jay Stasz, who resigned on March 9 from the top financial position at the franchise owner. According to SEC filings at the time, interim CFO Fitzgerald—who previously served as Planet Fitness's CFO—took over the interim role at a monthly compensation of $250,000, with an initial term of up to six months.

Professional Background and Experience

According to Priyadarshi's LinkedIn profile, before joining Planet Fitness, he served as CFO and President of International at beverage company Keurig Dr. Pepper for four years. His previous experience also includes serving as CFO at Vista Outdoor Inc. for two years, holding a finance leadership role at Flexport, and serving as Vice President of Finance for Walmart's U.S. e-commerce division at the large retail chain.

The company's press release noted that Priyadarshi "brings extensive experience in investor relations, capital markets, international P&L management, and M&A," and that his "skill set aligns closely with the strategic priorities of Planet Fitness's leadership team."

Business Context and Challenges

This executive change comes as the company works to improve net member growth. During the first-quarter earnings call in May, Fitzgerald stated that the company's membership growth "got off to a slower start than expected." He explained that net member growth was impacted by multiple factors, including marketing campaigns that failed to effectively reach customers, higher-than-expected member attrition during the quarter, and competitive pressures in key markets. Given these membership trends, the company decided to pause its planned nationwide price increase for the Black Card membership tier.

As of the end of the first quarter on March 31, Planet Fitness had approximately 21.5 million members. According to its earnings report released on May 7, first-quarter net income was $51.6 million, compared to $41.9 million in the same period last year; total revenue increased nearly 22% year-over-year to $337.2 million.

The company stated that it will rely on Priyadarshi's expertise to drive membership growth and financial execution, solidifying its leading position in the industry.