Dive Brief:
- Newly-minted Planet Fitness CFO Sudhanshu Priyadarshi will receive a $3 million new hire equity award comprised of restricted stock units, the fitness company said in a Thursday securities filing detailing his appointment.
- Priyadarshi, who most recently served as finance chief for Keurig Dr. Pepper, will take the CFO reins as well as the role of president, international effective Thursday, according to the filing with the Securities and Exchange Commission. Tom Fitzgerald, a company alum who has served as interim CFO since March, will remain with the Hampton, N.H.-based fitness center operator until mid-September in an advisory capacity to ensure a smooth transition, according to a Thursday press release.
- Priyardarshi “brings a results-oriented mindset, analytical approach, and focus on building winning cultures, and I'm confident he will be an integral part of our team at this important time for our organization," CEO Colleen Keating said in a statement. "Sudhanshu's clear track record of driving growth will support Planet Fitness' focus on financial and operational execution and reinforce our position as the industry leader in accessible and high-value fitness.”
Dive Insight:
Priyadarshi’s compensation will also include an annual base salary of $900,000 and he will be eligible for an annual cash bonus with a target of 115% of his base, according to the filing. In addition, he will receive a 2026 long-term incentive award with a grant value of $4 million, comprised of 50% RSUs and 50% performance share units, according to the filing.
Priyadarshi succeeds Jay Stasz, who stepped down from the franchisee owner’s top financial seat effective Mar. 9, according to an SEC filing at the time. Fitzgerald — a former Planet Fitness CFO — took the interim role with an initial term up to six months, receiving a monthly salary of $250,000, according to the filing.
Prior to Planet Fitness, Priyadarshi served four years as CFO and President, International for beverage firm Keurig Dr. Pepper, according to his LinkedIn profile. His past experience includes two years as CFO for Vista Outdoor Inc., finance chief for Flexport and as VP of finance, Walmart U.S. eCommerce for the big box chain.
With Priyadarshi’s “breadth of experience in investor engagement, capital markets, international P&L management, and corporate development,” the CFO’s “skillset is closely aligned with the strategic imperatives of the Planet Fitness leadership team,” the company said in the release.
The fitness center operator is looking to lean on Priyadarshi’s expertise as it takes steps to boost net memberships after getting off to a “slower start than expected,” Fitzgerald said during the company’s first quarter earnings call in May.
Net membership growth was impacted by several factors, including Planet Fitness’ marketing not resonating with customers, higher than expected attribution for the quarter and competitive pressures across key markets, Fitzgerald said. Given those membership trends, the company decided to pause a planned national price hike for its Black Card membership tier, he said.
As of March 31, the end of its first quarter, Planet Fitness had approximately 21.5 million members, according to its earnings release. For the first quarter, the company reported net income of $51.6 million, compared to $41.9 million in the prior year period. Total revenues rose by nearly 22% to $337.2 million, according to its May 7 earnings release for the quarter ended Mar. 31.
