Toast, Inc DEF 14A, filed Apr 23, 2026
Toast, Inc. (TOST)
DEF 14A
2026-04-23
For: 2026-06-12
View Original
Added on
June 12, 2026
About this DEF 14A
Toast, Inc filed this DEF 14A on April 23, 2026.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________________
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the
Securities Exchange Act of 1934 (Amendment No. )
___________________________________________
Filed by the Registrant ☒ Filed by a Party other than the Registrant ☐
Check the appropriate box:
| ☐ | Preliminary Proxy Statement | ||||
| ☐ | Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) | ||||
| ☒ | Definitive Proxy Statement | ||||
| ☐ | Definitive Additional Materials | ||||
| ☐ | Soliciting Material under §240.14a-12 | ||||
(Name of Registrant as Specified in Its Charter)
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check all boxes that apply):
| ☒ | No fee required. | ||||
| ☐ | Fee paid previously with preliminary materials. | ||||
| ☐ | Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11 | ||||
Toast, Inc.
333 Summer Street
Boston, MA 02210
NOTICE OF 2026 ANNUAL MEETING OF STOCKHOLDERS TO BE HELD ON JUNE 12, 2026
Dear Toast Stockholder:
We are pleased to invite you to attend the 2026 Annual Meeting of Stockholders (the “Annual Meeting”) of Toast, Inc. (“Toast”, or the “Company”) to be held on June 12, 2026 at 11:30 a.m. Eastern Time, virtually, via a live audio webcast. You will be able to attend and participate in the Annual Meeting online by visiting http://www.virtualshareholdermeeting.com/TOST2026, where you will be able to vote electronically and submit questions. You will need the 16-digit control number on your proxy card to attend the Annual Meeting. You will not be able to attend the Annual Meeting in person.
We are holding the Annual Meeting for stockholders to consider and vote on the following matters, which are more fully described in the accompanying proxy statement:
1. To elect Kent Bennett, Susan Chapman-Hughes, and Mark Hawkins as Class II Directors to serve until the 2029 annual meeting of stockholders, and until their respective successors are duly elected and qualified, subject to their earlier resignation or removal;
2. To ratify the appointment of Ernst & Young LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2026;
3. To approve, on an advisory (non-binding) basis, the compensation of our named executive officers; and
4. To transact any other business that properly comes before the Annual Meeting (including any adjournments, continuations and postponements thereof).
Our board of directors recommends that you vote “FOR” the director nominees named in Proposal One, “FOR” the ratification of the appointment of Ernst & Young LLP as our independent registered public accounting firm as described in Proposal Two, and “FOR” the approval, on an advisory basis, of the compensation of our named executive officers as described in Proposal Three.
We have elected to provide access to our Annual Meeting materials, which include the proxy statement for our Annual Meeting (the “Proxy Statement”) accompanying this notice, in lieu of mailing printed copies.
On or about April 23, 2026, we expect to mail to our stockholders a Notice of Internet Availability of Proxy Materials (the “Notice”) containing instructions on how to access the Proxy Statement and our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (the “2025 Annual Report”). The Notice provides instructions on how to vote online or by telephone and includes instructions on how to receive a paper copy of proxy materials by mail. This Proxy Statement and our 2025 Annual Report can be accessed directly at the Internet address www.proxyvote.com using the control number located on the Notice, on your proxy card or in the instructions that accompanied your proxy materials.
Only stockholders of record at the close of business on April 14, 2026 are entitled to notice of and to vote at the Annual Meeting as set forth in the Proxy Statement.
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Your vote is important. Whether or not you plan to attend the Annual Meeting online, please ensure that your shares are voted at the Annual Meeting by signing and returning a proxy card or by using our Internet or toll-free telephonic voting system, or, if you request to receive paper copies of these materials by mail, by returning your completed proxy card in the pre-addressed, postage-paid return envelope. If you attend the Annual Meeting online, you may vote during the meeting even if you have previously returned a proxy. If, for any reason, you desire to revoke or change your proxy, you may do so at any time before it is exercised, such that submitting your proxy now will not prevent you from voting your shares at the Annual Meeting. The proxy is solicited by the board of directors of Toast, Inc.
Thank you for your ongoing support of and continued interest in Toast.
Sincerely,
Aman Narang
Chief Executive Officer
April 23, 2026
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TABLE OF CONTENTS
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Toast, Inc.
333 Summer Street
Boston, MA 02210
PROXY STATEMENT
FOR THE 2026 ANNUAL MEETING OF STOCKHOLDERS TO BE HELD ON JUNE 12, 2026
PROCEDURAL MATTERS
Our board of directors (the “Board”) solicits your proxy on our behalf for the 2026 Annual Meeting of Stockholders (the “Annual Meeting”) and at any adjournment, continuation or postponement of the Annual Meeting for the purposes set forth in this proxy statement for our Annual Meeting (this “Proxy Statement”) and the accompanying notice of Annual Meeting. The Annual Meeting will be held on June 12, 2026 at 11:30 a.m. Eastern Time, virtually, via a live audio webcast. You will be able to attend the Annual Meeting, submit questions and vote online by visiting http://www.virtualshareholdermeeting.com/TOST2026. On or about April 23, 2026, a Notice of Internet Availability of Proxy Materials (the “Notice”) containing instructions on how to access this Proxy Statement and our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (the “2025 Annual Report,” together with the Notice, the “proxy materials”) is being mailed to our stockholders that held shares of our Class A common stock or Class B common stock as of April 14, 2026.
In this Proxy Statement, the terms “Toast,” “the Company,” “we,” “us” and “our” refer to Toast, Inc. The mailing address of our principal executive offices is Toast, Inc., 333 Summer Street, Boston, MA 02210.
QUESTIONS AND ANSWERS
The information provided in the “question and answer” format below is for your convenience only and is merely a summary of the information contained in this Proxy Statement. You should read this entire Proxy Statement carefully. Information contained on, or that can be accessed through, our website is not intended to be incorporated by reference into this Proxy Statement, and references to our website address in this Proxy Statement are inactive textual references only.
What matters are being voted on at the Annual Meeting?
You will be voting on:
•The election of three Class II directors to serve until the 2029 annual meeting of stockholders or until their successors are duly elected and qualified;
•A proposal to ratify the appointment of Ernst & Young LLP as our independent registered public accounting firm for our fiscal year ending December 31, 2026;
•A proposal to approve, on an advisory basis, the compensation of our named executive officers; and
•Any other business as may properly come before the Annual Meeting.
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How does the Board recommend I vote on these proposals?
Our Board recommends a vote:
•“FOR” the election of Kent Bennett, Susan Chapman-Hughes, and Mark Hawkins as Class II directors;
•“FOR” the ratification of the appointment of Ernst & Young LLP as our independent registered public accounting firm for our fiscal year ending December 31, 2026; and
•“FOR” the approval, on an advisory basis, of the compensation of our named executive officers.
Why are you holding a virtual meeting and how can stockholders participate?
We have held a virtual meeting for several years to provide ease of access, real-time communication and cost savings for our stockholders and our company. We believe hosting a virtual meeting provides expanded access for our stockholders and facilitates participation because stockholders can participate from any location around the world.
To participate in our Annual Meeting, visit http://www.virtualshareholdermeeting.com/TOST2026 with your 16-digit control number included in the Notice, on your proxy card, or in the instructions that accompanied your proxy materials. We have structured our virtual meeting to provide stockholders the same rights as if the meeting were held in person, including the ability to vote shares electronically during the meeting and ask questions in accordance with the Rules of Conduct for the meeting.
Only stockholders with a valid control number will be allowed to ask questions. Questions relevant to the proposals being voted at the Annual Meeting will be taken live via the webcast and answered during the meeting as time allows, to emulate an in-person question and answer session. Our virtual meeting will be governed by our Rules of Conduct, which will be available on the virtual meeting platform in advance of the Annual Meeting. The Rules of Conduct will address the ability of stockholders to ask questions during the meeting, including rules on permissible topics, and rules for how questions and comments will be recognized and disclosed to meeting participants. If you have any technical difficulties or any questions regarding the virtual meeting website, please call the support team at the numbers listed on the log-in screen at the meeting website.
Who is entitled to vote?
Holders of our Class A common stock and Class B common stock as of the close of business on April 14, 2026, the record date for the Annual Meeting (the “Record Date”), may vote at the Annual Meeting. As of the Record Date, there were 515,264,051 shares of our Class A common stock outstanding and 64,434,924 shares of our Class B common stock outstanding. Stockholders are not permitted to cumulate votes with respect to the election of directors. Each share of Class A common stock is entitled to one vote on each proposal and each share of Class B common stock is entitled to 10 votes on each proposal. Our Class A common stock and Class B common stock are collectively referred to in this Proxy Statement as our “common stock.”
Registered Stockholders. If shares of our common stock are registered directly in your name with our transfer agent, you are considered the stockholder of record with respect to those shares and the Notice was provided to you directly by us. As the stockholder of record, you have the right to grant your voting proxy directly to the individuals listed on the proxy card or to vote live at the Annual Meeting. Throughout this Proxy Statement, we refer to these registered stockholders as “stockholders of record.”
Street Name Stockholders. If shares of our common stock are held on your behalf in a brokerage account or by a bank or other nominee, you are considered to be the beneficial owner of shares that are held in “street name,” and the Notice was forwarded to you by your broker or nominee, who is considered the stockholder of record with respect to those shares. As the beneficial owner, you have the right to direct your broker, bank or other nominee as to how to vote your shares. Beneficial owners are also invited to attend the Annual Meeting. However, since a beneficial owner is not the stockholder of record, you may not vote your shares of our common stock live at the Annual Meeting unless you follow your broker’s procedures for obtaining a legal proxy. If you request a printed copy of our proxy materials by
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mail, your broker, bank or other nominee will provide a voting instruction form for you to use. Throughout this Proxy Statement, we refer to stockholders who hold their shares through a broker, bank or other nominee as “street name stockholders.”
What do I need to be able to attend the Annual Meeting?
We will be hosting our Annual Meeting via live webcast only. Any stockholder can attend the Annual Meeting live online at http://www.virtualshareholdermeeting.com/TOST2026. The webcast will start at 11:30 a.m. Eastern Time on June 12, 2026. Stockholders may vote and ask questions while attending the Annual Meeting online. In order to be able to attend the Annual Meeting, you will need the 16-digit control number, which is located on your Notice or proxy card (if you received a printed copy of the proxy materials). Instructions on how to participate in the Annual Meeting are also posted online at www.proxyvote.com.
How many votes are needed for approval of each proposal?
Proposal One: The election of directors requires a plurality of the votes properly cast for the applicable nominee to be elected. “Plurality” means that the nominees who receive the largest number of votes cast “FOR” are elected as directors. You may vote “For” or “Withhold” on each of the nominees for election as a director. Shares voting “withheld” and broker non-votes will have no effect on this proposal.
Proposal Two: The ratification of the appointment of Ernst & Young LLP as our independent registered public accounting firm for our fiscal year ending December 31, 2026 requires the affirmative vote of a majority of the votes properly cast on this proposal. Proposal No. 2 is considered to be a discretionary item, and a brokerage firm will be able to vote on this proposal even if it does not receive instructions from stockholders. Abstentions and broker non-votes will have no effect on the outcome of the vote on this proposal.
Proposal Three: The approval, on an advisory basis, of the compensation of our named executive officers requires the affirmative vote of a majority of the votes properly cast on this proposal. Because this proposal is an advisory vote, the result will not be binding on our Board, our compensation committee, or us. Our Board and our compensation committee will consider the outcome of the vote when determining the compensation of our named executive officers. Abstentions and broker non-votes will have no effect on the outcome of the vote on this proposal.
What is the quorum requirement?
A quorum is the minimum number of shares required to be present at the Annual Meeting to properly hold an annual meeting of stockholders and conduct business under our Third Amended and Restated Bylaws (our “Bylaws”) and Delaware law.
As of the Record Date, there were 515,264,051 shares of our Class A common stock outstanding and 64,434,924 shares of our Class B common stock outstanding. Each share of Class A common stock is entitled to one vote on each proposal and each share of Class B common stock is entitled to 10 votes on each proposal. The presence, in person or by remote communication, if applicable, or represented by proxy, of a majority of the voting power of all issued and outstanding shares of our common stock entitled to vote will constitute a quorum at the Annual Meeting. Shares present virtually during the Annual Meeting will be considered shares of common stock represented in person at the meeting. Abstentions, withheld votes and broker non-votes are counted as shares present and entitled to vote for purposes of determining a quorum.
How do I vote?
If you are a stockholder of record, there are four ways to vote:
(1) By Internet (Before the Annual Meeting): You may vote over the Internet at www.proxyvote.com, 24 hours a day, seven days a week, until 11:59 p.m. Eastern Time on June 11, 2026.
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You will need the 16-digit control number included on your Notice or proxy card (if you received a printed copy of the proxy materials);
(2) By Telephone: You may vote by toll-free telephone at 1-800-690-6903, until 11:59 p.m. Eastern Time on June 11, 2026. You will need the 16-digit control number included on your Notice or proxy card (if you received a printed copy of the proxy materials);
(3) By Mail: If you received printed proxy materials, you may submit your vote by completing, signing and dating each proxy card received and returning it promptly in the postage-paid envelope we have provided or return it to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717. Proxies submitted by U.S. mail must be received before the start of the Annual Meeting; or
(4) By Internet (During the Annual Meeting): You may vote during the Annual Meeting by going to http://www.virtualshareholdermeeting.com/TOST2026. You will need the 16-digit control number included on your Notice or proxy card (if you received a printed copy of the proxy materials). If you previously voted via the Internet (or by telephone or mail), you will not limit your right to vote online at the Annual Meeting.
If you are a street name stockholder, please follow the instructions from your broker, bank or other nominee to vote by Internet, telephone or mail. Street name stockholders may not vote via the Internet at the Annual Meeting unless they receive a legal proxy from their respective brokers, banks or other nominees.
Can I change my vote?
Yes. If you are a stockholder of record, you can change your vote or revoke your proxy any time before the Annual Meeting by:
•notifying our Corporate Secretary, in writing, at Toast, Inc., 333 Summer Street, Boston, MA 02210 before the vote is counted;
•voting again using the telephone or Internet before 11:59 p.m. Eastern Time on June 11, 2026 (your latest telephone or Internet proxy is the one that will be counted); or
•attending the Annual Meeting online and voting virtually during the meeting. Simply logging into the Annual Meeting online will not, by itself, revoke your proxy.
If you are a street name stockholder, your broker, bank or nominee can provide you with instructions on how to change your vote.
What is the effect of giving a proxy?
Proxies are solicited by and on behalf of our Board. Aman Narang, Elena Gomez and Brian Elworthy have been designated as proxy holders by our Board. When proxies are properly dated, executed and returned, the shares represented by such proxies will be voted at the Annual Meeting in accordance with the instructions of the stockholder. If no specific instructions are given, however, the shares will be voted in accordance with the recommendations of our Board as described above.
If any matters not described in this Proxy Statement are properly presented at the Annual Meeting, the proxy holders will use their own judgment to determine how to vote the shares. If the Annual Meeting is adjourned, the proxy holders can vote the shares on the new Annual Meeting date as well, unless you have properly revoked your proxy instructions, as described above.
What is the effect of votes withheld, abstentions and broker non-votes?
Votes withheld from any nominee, abstentions and “broker non-votes” (as defined below) are counted as present for purposes of determining the presence of a quorum.
Shares voting “withheld” have no effect on Proposal One (the election of directors). Abstentions have no effect on Proposal Two (the ratification of the appointment of Ernst & Young LLP as our independent
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registered public accounting firm for the fiscal year ending December 31, 2026), or Proposal Three (the advisory vote on the compensation of our named executive officers).
Brokerage firms and other intermediaries holding shares of our common stock in street name for their customers are required to vote such shares in the manner directed by their customers. If you are a beneficial owner of shares held in a brokerage account and you do not instruct your broker, bank or other agent how to vote your shares, your broker, bank or other agent may still be able to vote your shares in its discretion. Under the rules of the New York Stock Exchange, brokers, banks and other securities intermediaries that are subject to New York Stock Exchange rules may use their discretion to vote your “uninstructed” shares on matters considered to be “routine” under New York Stock Exchange rules but not with respect to “non-routine” matters. A broker non-vote occurs when a broker, bank or other agent has not received voting instructions from the beneficial owner of the shares and the broker, bank or other agent cannot vote the shares because the matter is considered “non-routine” under New York Stock Exchange rules. The proposal to ratify the appointment of Ernst & Young LLP as our independent registered public accounting firm for our fiscal year ending December 31, 2026 is considered a “routine” matter, such that, absent direction from you, your broker may vote your shares in its discretion on Proposal Two. Your broker will not have discretion to vote on Proposals One or Three, which are “non-routine” matters. For “non-routine” matters, broker non-votes will not be considered to have been voted “For” or “Against” a particular proposal, and therefore will have no effect on Proposals One or Three.
Why did I receive a Notice of Internet Availability of Proxy Materials instead of a full set of proxy materials?
In accordance with the rules of the U.S. Securities and Exchange Commission (the “SEC”), we have elected to furnish our proxy materials, including this Proxy Statement and our 2025 Annual Report, primarily via the Internet. On or about April 23, 2026, the proxy materials are being mailed to our stockholders. Stockholders may request to receive all future proxy materials in printed form by mail or electronically by e-mail by following the instructions contained in the Notice. We encourage stockholders to take advantage of the availability of our proxy materials on the Internet to help reduce the environmental impact and cost of our annual meetings of stockholders.
Where can I find the voting results of the Annual Meeting?
We will announce preliminary voting results at the Annual Meeting. We will also disclose voting results on a Current Report on Form 8-K that we will file with the SEC within four business days after the Annual Meeting. If final voting results are not available to us in time to file a Current Report on Form 8-K within four business days after the Annual Meeting, we will provide preliminary voting results in the Current Report on Form 8-K and will provide the final results in an amendment to the Current Report on Form 8-K as soon as they become available.
How are proxies solicited for the Annual Meeting?
Our Board is soliciting proxies for use at the Annual Meeting. All expenses associated with this solicitation will be borne by us. We will reimburse brokers or other nominees for reasonable expenses that they incur in sending our proxy materials to you if a broker, bank or other nominee holds shares of our common stock on your behalf. In addition, our directors and employees may also solicit proxies in person, by telephone or by other means of communication. Our directors and employees will not be paid any additional compensation for soliciting proxies.
I share an address with another stockholder and we received only one paper copy of the proxy materials. How may I obtain an additional copy of the proxy materials?
We have adopted a procedure called “householding,” which is permitted by SEC rules. Under this procedure, we deliver a single copy of the Notice and, if applicable, our proxy materials to multiple stockholders who share the same address, unless we have received contrary instructions from one or more of such stockholders. This procedure reduces our printing costs, mailing costs and fees. Stockholders who participate in householding will continue to be able to access and receive separate proxy cards. Upon written or oral request, we will promptly deliver a separate copy of the Notice and, if
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applicable, our proxy materials to any stockholder at a shared address to which we delivered a single copy of any of these materials. To receive a separate copy, or, if a stockholder is receiving multiple copies, to request that we only send a single copy of the Notice and, if applicable, our proxy materials, such stockholder may contact us at ir@toasttab.com or:
Toast, Inc.
Attention: Investor Relations
333 Summer Street
Boston, MA 02210
Street name stockholders may contact their broker, bank or other nominee to request information about householding.
What is the deadline to propose actions for consideration at next year’s annual meeting of stockholders or to nominate individuals to serve as directors?
Matters for Inclusion in Proxy Materials. Stockholders may present proper proposals, including director nominations (subject to the additional requirements set forth in the section titled “Director Nomination” below), for inclusion in our proxy statement and for consideration at next year’s annual meeting of stockholders by submitting their proposals in writing to our Corporate Secretary in a timely manner. For a stockholder proposal to be considered for inclusion in our proxy statement for the 2027 annual meeting of stockholders, our Corporate Secretary must receive the written proposal at our principal executive offices not later than December 24, 2026. In addition, stockholder proposals must comply with the requirements of Rule 14a-8 regarding the inclusion of stockholder proposals in company-sponsored proxy materials.
Stockholder proposals should be addressed to:
Toast, Inc.
Attention: Corporate Secretary
333 Summer Street
Boston, MA 02210
or ir@toasttab.com
Matters for Consideration at the Annual Meeting but not for Inclusion in Proxy Materials: Our Bylaws also establish an advance notice procedure for stockholders who wish to present a proposal before an annual meeting of stockholders but do not intend for the proposal to be included in our proxy statement. Our Bylaws provide that the only business that may be conducted at an annual meeting of stockholders is business that is (i) specified in our proxy materials with respect to such annual meeting, (ii) otherwise properly brought before such annual meeting by or at the direction of our Board or (iii) properly brought before such meeting by a stockholder of record entitled to vote at such annual meeting who has delivered timely written notice to our Corporate Secretary, which notice must contain the information specified in our Bylaws. Any stockholder considering such a proposal should carefully review our Bylaws, which describe the timing, procedural and substantive requirements for such proposal.
To be timely for the 2027 annual meeting of stockholders, our Corporate Secretary must receive the written notice at our principal executive offices:
•not earlier than the close of business on February 12, 2027; and
•not later than the close of business on March 14, 2027.
In the event that we hold the 2027 annual meeting of stockholders more than 30 days before or more than 60 days after the one-year anniversary of the Annual Meeting, then, for notice by the stockholder to be timely, it must be received by our Corporate Secretary not later than the close of business on the later of the 90th day prior to the scheduled date of such annual meeting or the 10th day following the day on which public announcement of the date of such meeting is first made.
Information with respect to director nominations is included in the section below titled “Director Nomination.” As to proposals regarding other business, the notice must include a brief description of the
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business desired to be brought before the meeting, the reasons for conducting such business at the meeting, the text, if any, of any resolutions or bylaw amendment proposed for adoption, and any material interest of such stockholder (and the beneficial owner) in the proposal. The proposal must be a proper subject for stockholder action. In addition, to make a nomination or proposal, the stockholder must be of record at the time the notice is made and must provide certain information regarding itself (and the beneficial owner), including the name and address, as they appear on our books, of the stockholder proposing such business or nomination, the class and number of shares of our capital stock and/or synthetic equity interest (as defined in the bylaws) which are, directly or indirectly, owned beneficially or of record by the stockholder proposing such business or nomination, or its affiliates or associates (as defined in Rule 12b-2 promulgated under the Exchange Act) and certain additional information.
If a stockholder who has notified us of his, her or its intention to present a proposal at an annual meeting of stockholders does not appear to present his, her or its proposal at such annual meeting, we are not required to present the proposal for a vote at such annual meeting.
Director Nomination. Holders of our common stock may propose director candidates for consideration by our nominating and corporate governance committee. Any stockholder considering such a nomination should carefully review our Bylaws, which describe the timing, procedural and substantive requirements for such nomination. The nominating and corporate governance committee must receive any such recommendation for nomination within the time periods described above under the section titled “Matters for Consideration at the Annual Meeting but not for Inclusion in Proxy Materials.” For additional information regarding stockholder recommendations for director candidates, see the section titled “Corporate Governance—Stockholder Recommendations for Director Candidates.”
In addition to satisfying the requirements under our Bylaws, to comply with the universal proxy rules, stockholders who intend to solicit proxies in support of director nominees other than our nominees must provide notice by the same deadline noted herein to submit a notice of nomination at an annual meeting of stockholders. Such notice must comply with the additional requirements of Rule 14a-19(b), including the timely provision of notices to us required thereunder. If any stockholder that provides notice subsequently fails to comply with the requirements of Rule 14a-19(a)(2) or Rule 14a-19(a)(3) promulgated under the Exchange Act, including the timely provision of notices to us required thereunder, and no other proposing person has provided notice in compliance with Rule 14a-19 under the Exchange Act that it intends to solicit proxies in support of the election of such proposed nominee in accordance with Rule 14a-19(b) under the Exchange Act, then such proposed nominee will be disqualified. No stockholder may solicit proxies in support of director nominees other than our nominees unless the stockholder has complied with Rule 14a-19 promulgated under the Exchange Act.
In connection with the 2027 annual meeting of stockholders, we intend to file a proxy statement and a WHITE proxy card with the SEC in connection with our solicitation of proxies for that meeting.
Availability of Bylaws. A copy of our Bylaws is available via the SEC’s website at http://www.sec.gov. You may also contact our Corporate Secretary at the address set forth above for a copy of the relevant bylaw provisions regarding the requirements for making stockholder proposals and nominating director candidates.
Who pays for the cost of this proxy solicitation?
We pay the entire cost of preparing and distributing these proxy materials. In addition, we may reimburse banks, brokers and other custodians, nominees and fiduciaries representing beneficial owners of shares for their expenses in forwarding solicitation materials to such beneficial owners. Proxies may be solicited by certain of our directors, officers and employees, personally or by mail, telephone, facsimile, email or other means of communication (electronic or otherwise). No additional compensation will be paid for such services.
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PROPOSAL ONE:
ELECTION OF DIRECTORS
Number of Directors; Board Structure
Our Board is divided into three staggered classes of directors. One class is elected each year at the annual meeting of stockholders for a term of three years. The term of the Class II directors expires at the Annual Meeting. The term of the Class III directors expires at the 2027 annual meeting and the term of the Class I directors expires at the 2028 annual meeting. After the expiration of their terms, directors are expected to be elected to hold office for a three-year term or until the election and qualification of their successors in office.
Nominees
Our Board has nominated Kent Bennett, Susan Chapman-Hughes, and Mark Hawkins for re-election as Class II directors to hold office until the 2029 annual meeting of stockholders or until their successors are duly elected and qualified, subject to their earlier resignation or removal. Each of the nominees is a current Class II director and member of our Board.
Unless you direct otherwise through your proxy voting instructions, the persons named as proxies will vote all proxies received “FOR” the election of each nominee. If any nominee is unable or unwilling to serve at the time of the Annual Meeting, the persons named as proxies may vote for a substitute nominee chosen by our present Board. Alternatively, the proxies may vote only for the remaining nominees, leaving a vacancy on our Board. Our Board may fill a vacancy at a later date or reduce the size of our Board. We have no reason to believe that any of the nominees will be unwilling or unable to serve if elected as a director.
Vote Required
The election of directors requires a plurality of the votes properly cast for the applicable nominee to be elected. Shares voting “withheld” and broker non-votes will have no effect on the election of directors.
Recommendation of our Board
OUR BOARD RECOMMENDS THAT YOU VOTE “FOR” THE ELECTION OF EACH OF THE NOMINEES.
The biographies of each of the nominees and continuing directors below contain information regarding each such person’s service as a director, business experience, other director positions held currently or at any time during the last five years and the experiences, qualifications, attributes or skills that caused our Board to determine that the person should serve as a director of our company. In addition to the information presented below regarding each nominee’s and continuing director’s specific experience, qualifications, attributes and skills that led our Board to the conclusion that he or she should serve as a director, we also believe that each of our directors has a reputation for integrity, honesty and adherence to high ethical standards. Each of our directors has demonstrated business acumen and an ability to exercise sound judgment, as well as a commitment of service to our company and our Board. Finally, we value our directors’ experience in relevant areas of business management and on other boards of directors and board committees.
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Directors
The following table sets forth information regarding our directors, including their ages, as of March 31, 2026:
| Class | Age | Position(s) | Current Term Expires | Expiration of Term for which Nominated | Audit Committee | Compensation Committee | Nominating and Corporate Governance Committee | |||||||||||||||||||
Nominees for Director | ||||||||||||||||||||||||||
Kent Bennett | II | 48 | Director | 2026 | 2029 | M | M | |||||||||||||||||||
Susan Chapman-Hughes | II | 57 | Director | 2026 | 2029 | C | M | |||||||||||||||||||
Mark Hawkins | II | 66 | Board Chairperson | 2026 | 2029 | C | M | |||||||||||||||||||
Continuing Directors | ||||||||||||||||||||||||||
| Stephen Fredette | III | 42 | President, Co-Founder, and Director | 2027 | N/A | |||||||||||||||||||||
| Aman Narang | III | 43 | CEO, Co-Founder, and Director | 2027 | N/A | |||||||||||||||||||||
Deval L. Patrick | III | 69 | Director | 2027 | N/A | C | ||||||||||||||||||||
Paul Bell | I | 65 | Director | 2028 | N/A | M | ||||||||||||||||||||
| Anu Bharadwaj | I | 43 | Director | 2028 | N/A | M | ||||||||||||||||||||
Hilarie Koplow-McAdams | I | 62 | Director | 2028 | N/A | M | ||||||||||||||||||||
Legend:
M = Member
C = Chairperson
Nominees for Election to a Three-Year Term Ending at the 2029 Annual Meeting
Kent Bennett. Mr. Bennett has been a member of our Board since December 2015. Mr. Bennett has served as an investment professional at Bessemer Venture Partners, a global venture capital and private equity firm, since 2008 and has been a Partner since 2013. Mr. Bennett currently serves on the boards of directors of various privately held companies. Mr. Bennett holds an M.B.A. from Harvard Business School and a B.S. in Systems Engineering from the University of Virginia. Mr. Bennett’s qualifications to sit on our Board include his extensive experience in the venture capital industry and serving as a director of various privately held companies, and his knowledge of technology companies.
Susan E. Chapman-Hughes. Ms. Chapman-Hughes has been a member of our Board since February 2021. Ms. Chapman-Hughes currently serves as Founder and Managing Partner of Acumentus, a management consulting firm. She was the Executive Vice President, Global Head of Digital Capabilities, Transformation and Operations of The American Express Company (“American Express”) from February 2018 to February 2021. Previously at American Express, Ms. Chapman-Hughes served as Senior Vice President, U.S. Large Market, Global Corporate Payments from December 2014 to February 2018 and in various other roles since 2010. Ms. Chapman-Hughes has served on the board of directors of The J.M. Smucker Company since August 2020 and previously served on the board of directors of Potbelly Corporation from May 2014 to June 2020. Ms. Chapman-Hughes holds an M.B.A. from the University of Wisconsin-Madison, a Master’s Degree in Regional Planning from the University of Massachusetts, Amherst and a B.S. in Engineering from Vanderbilt University. Ms. Chapman-Hughes’s qualifications to sit on our Board include her extensive experience as a director of public companies and her leadership, executive, managerial and business experience with technology companies.
Mark Hawkins. Mr. Hawkins has been a member of our Board since April 2020, Chairperson of the Board since January 2024, and the Lead Independent Director of our Board between November 2021 and December 2023. Mr. Hawkins served as the President and Chief Financial Officer Emeritus Advisor at Salesforce between February 2021 and November 2021, the President and Chief Financial Officer from
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August 2017 to February 2021, and the Executive Vice President and Chief Financial Officer at Salesforce between August 2014 and 2017. Prior to that, he served as Chief Financial Officer and Executive Vice President of Autodesk, Inc., Chief Financial Officer and Senior Vice President of Finance & IT at Logitech International S.A. and held various positions at Dell and Hewlett-Packard. Mr. Hawkins has served on the board of directors of Cloudflare, Inc. since June 2022, and Workday, Inc. since February 2023. He also served as a board member of SecureWorks Inc. from April 2016 until its acquisition by Sophos, Inc. in February 2025. In addition, he serves as a senior advisor and board member to a number of private companies. Mr. Hawkins holds an M.B.A. in Finance from the University of Colorado, a B.A. from Michigan State University and has completed the Advanced Management Program at Harvard Business School. Mr. Hawkins’s qualifications to sit on our Board include his extensive experience as a director of public companies and his leadership, executive, managerial, financial and business experience with technology companies.
Continuing Directors
Stephen Fredette. Mr. Fredette is a Co-Founder of our Company. He has been our President since January 2024 and a member of our Board since August 2021. Prior to that, Mr. Fredette was our Co-President since December 2015 and our Chief Executive Officer from December 2011 to February 2015. Mr. Fredette also served as a member of our Board from December 2011 to June 2017 and from February 2020 to January 2021. Previously, Mr. Fredette served in various roles at Oracle Corporation (“Oracle”). Mr. Fredette holds a B.S. in Chemistry from the Massachusetts Institute of Technology. Mr. Fredette is qualified to serve on our Board because of his management experience and business expertise, including his perspective and experience he brings as our President and as a Co-Founder.
Aman Narang. Mr. Narang is a Co-Founder of our Company. He has been our Chief Executive Officer since January 2024 and a member of our Board since January 2021. Prior to that, Mr. Narang was our Co-President between December 2012 and December 2023, and Chief Operating Officer between June 2021 and December 2023. Mr. Narang also served as a member of our Board from December 2011 to December 2015 and from June 2017 to June 2018. Previously, Mr. Narang worked in Product Management at Oracle. Mr. Narang holds a B.S. and M.S. in Computer Science from the Massachusetts Institute of Technology. Mr. Narang is qualified to serve on our Board because of his management experience and business expertise, including his perspective and experience he brings as our Chief Executive Officer and as a Co-Founder.
Deval L. Patrick. Mr. Patrick has been a member of our Board since February 2021. Mr. Patrick is a Senior Partner of The Vistria Group, a private impact investment firm, having served as a Senior Advisor to the firm from January 2024 to November 2024. Between February 2022 and June 2025, Mr. Patrick served as a professor of the practice of public leadership at the Harvard Kennedy School, where he also served as co-director of the Center for Public Leadership from 2022 until 2024. From March 2021 to December 2023, Mr. Patrick was a Senior Advisor at Bain Capital LLC, where he previously founded and, from April 2015 to December 2019, served as Managing Partner of the Double Impact Fund, an investment fund focused on delivering competitive financial returns and positive social impact. Previously, from January 2007 to January 2015, Mr. Patrick served as Governor of the Commonwealth of Massachusetts. Mr. Patrick has served on the boards of directors of Twilio Inc., a cloud communications developer platform, since January 2021. He previously served on the board of directors of American Well Corp., a telemedicine technology company, from June 2015 to December 2019, and from April 2020 to June 2024; Cerevel Therapeutics Holdings, Inc., a biopharmaceutical company focused on neuroscience, from January 2021 until its acquisition by AbbVie Inc. in July 2024; Environmental Impact Acquisition Corp., a special purpose acquisition company focused on sustainability companies, from January 2021 to February 2022; and Global Blood Therapeutics, Inc., a biotech company focused on therapies to address sickle cell disease, from April 2015 to November 2019, and from May 2020 until its acquisition by Pfizer Inc. in October 2022. In addition, Mr. Patrick serves as a member of several charitable boards. Mr. Patrick holds a B.A. in English and American Literature from Harvard College and a J.D. from Harvard Law School. Mr. Patrick’s qualifications to sit on our Board include his extensive executive and business leadership experience with companies, investment firms and government, combined with his dedication and commitment to public interest through corporate social impact and civil rights.
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Paul Bell. Mr. Bell has been a member of our Board since June 2017. Mr. Bell has been an Operating Partner at Lead Edge Capital since July 2013. Previously, Mr. Bell worked for Dell Inc. (“Dell”), serving as President of various business units. Mr. Bell currently serves on the boards of directors of several private companies. Mr. Bell holds an M.B.A. from Yale University and a B.S. and B.A. from Pennsylvania State University. Mr. Bell’s qualifications to serve on our Board include his extensive leadership, executive, managerial, and business experience with technology companies and knowledge of the venture capital industry.
Anu Bharadwaj. Ms. Bharadwaj has been a member of our Board since October 2025. She has been a Partner at ICONIQ Capital since April 2026. Previously, she served as the President of Atlassian Corporation (“Atlassian”) between February 2023 and December 2025 and as an advisor of Atlassian between January 2026 and March 2026. She was the Chief Operating Officer from August 2021 to February 2023 and in multiple other roles at Atlassian from January 2014 to July 2021. Prior to joining Atlassian, Ms. Bharadwaj served in various leadership positions at Microsoft. Ms. Bharadwaj holds a B.Eng. in Computer Science from R.V. College of Engineering. Ms. Bharadwaj’s qualifications to serve on our Board include her extensive experience in the enterprise software industry, with a proven track record of scaling businesses and leading product innovation at public companies.
Hilarie Koplow-McAdams. Ms. Koplow-McAdams has been a member of our Board since November 2021. Ms. Koplow-McAdams has been a Venture Partner at New Enterprise Associates since December 2017. Previously, Ms. Koplow-McAdams worked at New Relic, Inc., where she served as President from October 2015 to April 2017, and prior to that as Chief Revenue Officer from December 2013 to September 2015. Ms. Koplow-McAdams has served on the board of directors of Zendesk, Inc. since September 2017 and continues to serve as a director following its acquisition in November 2022. Previously, she served on the board of directors of Tableau Software, Inc. from December 2016 until it was acquired by Salesforce.com, Inc. (“Salesforce”) in August 2019. Ms. Koplow-McAdams has been a Trustee of the University of Chicago since May 2020. Ms. Koplow-McAdams also serves on the boards of directors of various privately held companies. Ms. Koplow-McAdams holds a B.A. in sociology from Mills College and an M.A. in public policy from the University of Chicago. Ms. Koplow-McAdams’ qualifications to sit on our Board include her extensive leadership, executive, and business experience with technology companies and knowledge of the venture capital industry.
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CORPORATE GOVERNANCE
Our business and affairs are managed under the direction of our Board, which is elected by our stockholders. Our Board currently consists of nine (9) directors, all of whom, other than Mr. Fredette and Mr. Narang, qualify as “independent” under the listing standards of the New York Stock Exchange (the “NYSE”).
Director Independence
Our Class A common stock is listed on the NYSE. Under the listing standards of the NYSE, independent directors must comprise a majority of a listed company’s board of directors. In addition, the listing standards of the NYSE require that, subject to specified exceptions, each member of a listed company’s audit, compensation and nominating and corporate governance committees be independent. Under the listing standards of the NYSE, a director will only qualify as an “independent director” if, in the opinion of that listed company’s board of directors, that director does not have a relationship that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director.
Audit committee members must also satisfy the additional independence criteria set forth in Rule 10A-3 under the Exchange Act, and the listing standards of the NYSE. Compensation committee members must also satisfy the additional independence criteria set forth in Rule 10C-1 under the Exchange Act and the listing standards of the NYSE.
Our Board has undertaken a review of the independence of each director. Based on information provided by each director concerning his or her background, employment and affiliations, our Board has determined that each of Mr. Bell, Mr. Bennett, Ms. Bharadwaj, Ms. Chapman-Hughes, Mr. Hawkins, Ms. Koplow-McAdams, and Mr. Patrick is “independent” as that term is defined under the listing standards of the NYSE, as they do not have relationships that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director. In making these determinations, our Board considered the current and prior relationships that each non-employee director has with our company and all other facts and circumstances our Board deemed relevant in determining their independence, including the beneficial ownership of our capital stock by each non-employee director, and the transactions involving them described in the section titled “Certain Relationships and Related Party Transactions.”
Board Leadership Structure
Our corporate governance guidelines do not provide a formal policy on whether the roles of Chairperson of our Board and Chief Executive Officer (“CEO”) of the Company should be separate or combined and, therefore, the Board has the flexibility to decide which structure is in the best interests of our stockholders and the Company.
The Board believes at this time that our stockholders are best served by separate Chairperson and CEO roles. Mr. Narang serves as the CEO and Mr. Hawkins currently serves as the Chairperson of the Board.
A number of factors support the separate leadership structure chosen by the Board. Separate Chairperson and CEO roles promotes balance between the Board’s independent authority to oversee the Company’s business and the CEO’s management team, which manages our operations on a day-to-day basis, allows Mr. Narang to focus on operating and managing the Company, leverages Mr. Hawkins’ wealth of public company experience, and fosters accountability and effectiveness of the Board operation. Our Board believes that its independence and oversight of management is maintained effectively through this leadership structure, the composition of our Board, and sound corporate governance policies and practices.
Our Board recognizes that depending on future circumstances, other leadership models may become more suitable in addressing the interests of our Company and our stockholders. Accordingly, our Board may periodically review its leadership structure and adjust such structure from time to time.
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Board’s Role in Risk Oversight
One of the key functions of our Board is informed oversight of our risk management process. Our Board does not have a standing risk management committee, but rather administers this oversight function directly through our Board as a whole, as well as through its standing committees that address risks inherent in their respective areas of oversight. In particular, our Board is responsible for monitoring and assessing strategic risk exposure. Our audit committee is responsible for reviewing and discussing our major financial risk exposures and the steps our management has taken to monitor and control these exposures, including guidelines and policies with respect to risk assessment and risk management. Our audit committee also monitors compliance with legal and regulatory requirements, in addition to oversight of the performance of our external and internal audit function. Our nominating and corporate governance committee monitors the effectiveness of our corporate governance guidelines and evaluates our Board and committees’ composition. Our compensation committee reviews and discusses the risks arising from our compensation philosophy and practices applicable to all employees that are reasonably likely to have a material adverse effect on us.
Risks Related to Compensation Policies and Practices
When determining our compensation policies and practices, the Board considers various matters relevant to the development of a reasonable and prudent compensation program, including whether the policies and practices are reasonably likely to have a material adverse effect on us. Our compensation committee is responsible for conducting and reviewing compensation risk assessments regularly. We believe that the mix and design of our employee compensation plans and policies do not encourage assumption of excessive risks and are not reasonably likely to have a material adverse effect on us for the following reasons: we offer a balance of short and long-term incentives and fixed and variable amounts and our variable compensation provides enhanced incentives for employees to outperform and strong disincentives for employees to underperform against our Company goals and is based on a balanced mix of Company performance criteria.
Anti-Hedging and Anti-Pledging Policies
Certain transactions in our securities (such as purchases and sales of publicly traded put and call options, and short sales) create a heightened compliance risk or could create the appearance of misalignment between management and stockholders. In addition, securities held in a margin account or pledged as collateral may be sold without consent if the owner fails to meet a margin call or defaults on the loan, thus creating the risk that a sale may occur at a time when an officer or director is aware of material, non-public information or otherwise is not permitted to trade in company securities. Our Toast, Inc. Stock Trading Policy applies to all transactions in our Company securities by our employees, officers and directors and prohibits the following transactions in our Company securities: short sales (unless the sale is part of a permitted “cashless” exercise of stock options), the purchase or sale of derivative securities or hedging transactions, the use of Toast securities as collateral subject to margin calls and the pledge of Toast securities as collateral for loans unless prior pre-clearance is obtained in writing by the Company’s General Counsel or their designee, and reported to the Company’s Audit Committee of the Board.
Stock Trading Policy
We maintain a stock trading policy governing the purchase, sale and other dispositions of our securities that applies to all of our directors, officers, and employees and to the Company itself. We believe our stock trading policy and procedures are reasonably designed to promote compliance with insider trading laws, rules and regulations, and listing standards applicable to the Company. A copy of our stock trading policy is filed as Exhibit 19.1 to our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
Board Meetings and Committees; Annual Meeting Attendance
Our Board may establish the authorized number of directors from time to time by resolution. Our Board currently consists of nine (9) directors.
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During our fiscal year ended December 31, 2025, our Board held five meetings, and each director attended at least 75% of the aggregate of (i) the total number of meetings of our Board held during the period for which he or she had been a director and (ii) the total number of meetings held by all committees of our Board on which he or she served during the periods that he or she served. Under our Corporate Governance Guidelines, directors are expected to spend the time needed and meet as frequently as our Board deems necessary or appropriate to discharge their responsibilities. Directors are also expected to make efforts to attend all meetings of our Board and all meetings of the committees on which they serve.
Our Board has established an audit committee, a compensation committee and a nominating and corporate governance committee. The composition and responsibilities of each of the committees of our Board is described below. Members serve on these committees until their resignation or until as otherwise determined by our Board.
Directors are responsible for attending the annual meeting of stockholders to the extent practicable. All members of our Board attended our 2025 annual meeting of stockholders.
Audit Committee
Our audit committee currently consists of Mr. Bell, Mr. Hawkins, and Ms. Koplow-McAdams, with Mr. Hawkins serving as Chairperson. Each member of our audit committee meets the requirements for independence under the listing standards of the NYSE and SEC rules and regulations. Each member of our audit committee also meets the financial literacy and sophistication requirements of the listing standards of the NYSE. In addition, our Board has determined that Mr. Hawkins is an audit committee financial expert within the meaning of Item 407(d) of Regulation S-K under the Securities Act of 1933, as amended (the “Securities Act”). Our audit committee’s responsibilities include, among other things:
1.selecting a qualified firm to serve as the independent registered public accounting firm to audit our financial statements;
2.ensuring the independence and overseeing the performance of the independent registered public accounting firm, including oversight on regular rotations of audit partners;
3.discussing the scope and results of the audit with the independent registered public accounting firm, and reviewing, with management and the independent registered public accounting firm, our interim and year-end results of operations;
4.developing procedures for employees to submit concerns anonymously about questionable financial reporting, accounting or audit matters;
5.reviewing our policies on risk assessment relating to financial, accounting, and financial statement risks and our enterprise risk management framework, which includes regular risk assessments on climate and cybersecurity matters;
6.reviewing related party transactions;
7.reviewing major issues as to the adequacy of our internal controls and any special audit steps adopted in light of material control deficiencies; and
8.approving (or, as permitted, pre-approving) all audit and all permissible non-audit services, other than de minimis non-audit services, to be performed by the independent registered public accounting firm.
Our audit committee operates under a written charter that satisfies the applicable rules and regulations of the SEC and the listing standards of the NYSE. A copy of the charter of our audit committee is available on our website at investors.toasttab.com.
Our audit committee held five meetings during the fiscal year ended December 31, 2025.
Compensation Committee
Our compensation committee consists of Mr. Bennett, Ms. Bharadwaj, Ms. Chapman-Hughes, and
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Mr. Hawkins, with Ms. Chapman-Hughes serving as Chairperson. Each member of our compensation committee meets the requirements for independence under the listing standards of the NYSE and SEC rules and regulations. Each member of our compensation committee is also a non-employee director, as defined pursuant to Rule 16b-3 promulgated under the Exchange Act. Our compensation committee’s responsibilities include, among other things:
1.reviewing and making recommendations to our Board regarding, the compensation of our CEO and non-employee directors;
2.administering our equity incentive plans and clawback policy;
3.overseeing compliance of the stock ownership guidelines;
4.reviewing and assessing the results of the most recent stockholder advisory vote on executive compensation;
5.reviewing, determining, and approving the compensation of our executive officers (except the CEO), including grants and awards under incentive-based compensation plans and equity-based plans;
6.reviewing risks associated with the Company’s compensation policies and practices;
7.reviewing and overseeing senior management compensation, key officer succession planning and talent development; and
8.establishing and reviewing general policies relating to compensation and benefits of our employees.
Our compensation committee operates under a written charter that satisfies the applicable rules and regulations of the SEC and the listing standards of the NYSE. A copy of the charter of our compensation committee is available on our website at investors.toasttab.com.
Our compensation committee held six meetings during the fiscal year ended December 31, 2025.
Nominating and Corporate Governance Committee
Our nominating and corporate governance committee consists of Mr. Bennett, Ms. Chapman-Hughes, and Mr. Patrick, with Mr. Patrick serving as Chairperson. Each member of our nominating and corporate governance committee meets the requirements for independence under the listing standards of the NYSE and SEC rules and regulations. Our nominating and corporate governance committee’s responsibilities include, among other things:
1.identifying, evaluating and selecting, or making recommendations to our Board regarding, nominees for election to our Board and its committees;
2.overseeing the evaluation of our Board, its committees and of individual directors;
3.considering and making recommendations to our Board regarding the composition of our Board and its committees;
4.reviewing developments in corporate governance practices;
5.overseeing our corporate social responsibility undertakings, including our corporate citizenship and sustainability initiatives and targets such as climate-related matters;
6.assisting our Board with CEO succession planning; and
7.reviewing and assessing the adequacy of the corporate governance guidelines and code of business conduct and ethics and recommend any changes to our Board for approval.
Our nominating and corporate governance committee operates under a written charter that satisfies the applicable listing standards of the NYSE. A copy of the charter of our nominating and corporate governance committee is available on our website at investors.toasttab.com.
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Our nominating and corporate governance committee held four meetings during the fiscal year ended December 31, 2025.
Compensation Committee Interlocks and Insider Participation
None of the members of our compensation committee is or has been an officer or employee of our company. None of our executive officers currently serves, or in the past year has served, as a member of the board or compensation committee (or other board committee performing equivalent functions) of any entity that has one or more of its executive officers serving on our Board or our compensation committee. See the section titled “Certain Relationships and Related Party Transactions” for information about related party transactions involving members of our compensation committee or their affiliates.
Identifying and Evaluating Director Nominees
The Board has delegated to the nominating and corporate governance committee the responsibility of identifying suitable candidates for nomination to the Board (including candidates to fill any vacancies that may occur) and assessing their qualifications in light of the policies and principles in these corporate governance guidelines and our compensation committee’s charter. The nominating and corporate governance committee may gather information about the candidates through interviews, detailed questionnaires, comprehensive background checks or any other means that the nominating and corporate governance committee deems to be appropriate in the evaluation process. The nominating and corporate governance committee then meets as a group to discuss and evaluate the qualities and skills of each candidate, both on an individual basis and taking into account the overall composition and needs of the Board. Based on the results of the evaluation process, the nominating and corporate governance committee recommends candidates for the Board’s approval as director nominees for election to the Board.
Diversity
Core to our success is our passionate and diverse team of Toasters, led by a skilled and experienced leadership team with a proven track record of scaling leading platforms and organizations. Although our Board does not maintain a formal policy with respect to board diversity, our nominating and corporate governance committee considers a broad range of backgrounds and experiences, including, but not limited to, race, gender and national origin in making determinations regarding nominations of directors.
We believe in the benefits of different viewpoints and value the many kinds of diversity reflected by our Board. Five of our directors are gender or ethnically diverse, including three female directors, two Black/African Americans, and two Asians, as self-reported by each director.
Qualifications
Qualifications
Our nominating and corporate governance committee uses a variety of methods for identifying and evaluating director nominees and will consider all facts and circumstances that it deems appropriate or advisable. In its identification and evaluation of director candidates, our nominating and corporate governance committee will consider the current size and composition of our Board and the needs of our Board and the respective committees of our Board. Some of the factors that our nominating and corporate governance committee considers include, without limitation, character, integrity, judgment, independence, skills, education, expertise, business acumen, business experience, length of service, diversity of background and experience, understanding of our business and industry, potential conflicts of interest and other commitments.
Nominees must also have proven achievement and competence in their field, the ability to offer advice and guidance to our management team, the ability to make significant contributions to our success and an understanding of the fiduciary responsibilities that are required of a director. Director candidates must have sufficient time available in the judgment of our nominating and corporate governance committee to perform all Board and committee responsibilities. Members of our Board are expected to prepare for, attend and participate in all Board and applicable committee meetings. Other than the foregoing, there are no stated minimum criteria for director nominees, although our nominating and
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corporate governance committee may also consider such other factors as it may deem, from time to time, are in our and our stockholders’ best interests.
Our nominating and corporate governance committee also considers results from our annual board and committee evaluations and its periodic review of our Board and committee compositions. After completing its review and evaluation of director candidates, our nominating and corporate governance committee recommends the director nominees for selection to our full Board.
Stockholder Recommendations for Director Candidates
The nominating and corporate governance committee will consider director nominee candidates who are recommended by our stockholders. All recommendations for director candidates must be submitted in writing to our Corporate Secretary at 333 Summer Street, Boston, MA 02210, and must include, in addition to all information required by our Bylaws, the following:
•name and address of the stockholder making the recommendation;
•a representation that the stockholder is a record holder of our securities, or if the stockholder is not a record holder, evidence of ownership;
•name, age, business and residential address, educational background, and current principal occupation or employment of the individual recommended for consideration as a director nominee;
•a description of the qualifications and background of the proposed director nominee that addresses the criteria for board membership approved by the Board from time to time and set forth in the policies and procedures for director candidates adopted by our nominating and corporate governance committee;
•a description of all arrangements or understandings between the stockholder and the proposed director nominee;
•the consent of the proposed director nominee (i) to be named in the proxy statement for the annual meeting and (ii) to serve as a director if elected at such annual meeting; and
•any other information regarding the proposed director nominee that is required to be included in the proxy statement.
Stockholder Communications
The Board provides to every stockholder the ability to communicate with the Board, as a whole, and with individual directors on the Board through an established process for stockholder communication as set forth in the Securityholder Communication Policy, a copy of which is available at investors.toasttab.com. For a stockholder communication directed to the Board as a whole, stockholders may send such communication to the Office of the General Counsel via U.S. Mail or Expedited Delivery Service to: Toast, Inc., 333 Summer Street, Boston, MA 02210, Attn: Board of Directors, c/o Office of the General Counsel.
For a stockholder or other interested party communication directed to an individual director in his or her capacity as a member of the Board, stockholders may send such communication to the attention of the individual director via U.S. Mail or Expedited Delivery Service to: Toast, Inc., 333 Summer Street, Boston, MA 02210, Attn: Name of Individual Director.
We will forward by U.S. Mail any such stockholder communication to each director to whom such communication is addressed and to the Chairperson of the Audit Committee of the Board, in his or her capacity as a representative of the Board, at the address specified by each such director and the Chairperson of the Audit Committee of the Board, provided that our Office of General Counsel may review these communications and reserves the right not to forward communications if they are deemed inappropriate, consist of individual grievances or other interests that are personal to the party submitting the communication and could not reasonably be construed to be of concern to stockholders or other constituencies of the company, solicitations, advertisements, surveys, “junk” mail, or mass mailings.
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Corporate Governance Guidelines and Code of Business Conduct and Ethics
Our Board has adopted Corporate Governance Guidelines that address items such as the qualifications and responsibilities of our directors and director candidates and corporate governance policies and standards applicable to us in general. In addition, our Board has adopted a Code of Business Conduct and Ethics that applies to all of our employees, directors and officers, including our CEO, Chief Financial Officer (“CFO”) and other executive and senior financial officers. A copy of our Corporate Governance Guidelines and Code of Business Conduct and Ethics is available on our Internet website at investors.toasttab.com and may also be obtained without charge by contacting our Corporate Secretary at Toast, Inc., 333 Summer Street, Boston, MA 02210. We intend to disclose any amendments to our Code of Business Conduct and Ethics, or waivers of its requirements, on our website or in filings under the Exchange Act, as required by the applicable rules and exchange requirements. During the fiscal year ended December 31, 2025, we have not granted any waivers from any provision of our Code of Business Conduct and Ethics.
Commitment to Environmental, Social, and Governance
At Toast, we are committed to sound environmental, social and governance (“ESG”) practices and to making our business a force for good in the world. Our ESG initiatives, discussed further below, enhance how we operate and develop long-term value, consistent with Toast’s purpose to “enrich the food experience for all.” We focus our ESG efforts on managing our impacts on a variety of stakeholders, including employees, customers, suppliers, the environment, and society.
ESG Governance and Disclosure
ESG matters, including our strategy and initiatives around corporate social responsibility, sustainability, and culture and belonging, are guided by our corporate social responsibility executive committee and overseen by the nominating and corporate governance committee of our Board. Our Board, through the audit committee, tracks rules and regulations on disclosure, including on ESG and climate-related matters.
Highlights of our ESG work include:
Sustainability and Climate. Our environmental efforts span our operations, platform, and products — including our workplaces, the full life cycle of our hardware and how we can help our customers and their guests reduce their impacts.
Toast incorporates climate change risks and low-carbon transition risks into its enterprise risk management process, in alignment with the Task Force on Climate-related Financial Disclosures framework. In 2025, Toast received limited assurance for our 2024 Greenhouse Gas (GHG) Inventory and net-zero Scope 2 emissions for electricity via renewable energy. We continued GHG inventory calculation (Scopes 1, 2, & relevant Scope 3) for fiscal year 2025 per the GHG Protocol and remain committed to net-zero Scope 2 emissions for electricity. Toast also offers a takeback recycling program for all hardware sold in the United States, Canada, Ireland, and the United Kingdom, and requires suppliers of Toast-branded hardware to adopt the Responsible Business Alliance (RBA) Code of Conduct or substantially equivalent supplier standards, enhancing sustainability and labor standards in our value chain.
Supporting Our Employees. At Toast, we believe the success of our business comes only with the success of our employees. We continue to maintain high employee engagement and satisfaction, as assessed by our annual internal culture surveys. We believe having a diverse and inclusive workforce is a strategic enabler to our business success. Our goal is to create a culture where all Toasters can thrive, forge meaningful impact, and raise the bar together. This strategy is rooted in four key principles: we believe great talent is everywhere; difference enables innovation; to reach our customers, we must understand them; and we want to be the best place to work for our Toasters.
Supporting Our Communities. At Toast, we are committed to enriching the food experience for all and harnessing our people, products, and philanthropy to maximize our positive impact on the world. Toast is a member of Pledge 1%, a global movement that encourages and empowers companies of all sizes and
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stages to donate 1% of their staff time, product, profit, and/or equity to the philanthropic pursuits of their choosing.
Toast.org, our social impact arm, is focused on solving critical issues in the food ecosystem that impact communities and the planet. In 2025, Toast.org commitments focused on addressing hunger and food insecurity, and supporting the next generation of industry leaders through culinary training programs.
In furtherance of Toast’s values and these goals, in 2025, Toast announced a $5 million, five-year commitment to address hunger and food insecurity globally, making grants to hunger-relief organizations as well as directly to U.S. restaurants fighting hunger in their local communities. Toast also builds tools that enable restaurants to support their communities directly. The Toast Fundraising tool, which allows restaurants to invite guests to contribute to causes they care about, has facilitated over $10 million guest contributions since its inception until the end of 2025.
Data Privacy and Cybersecurity. We are committed to responsibly handling the information of our employees, customers, their guests and employees, and other stakeholders in accordance with applicable data privacy laws and security best practices. Our cybersecurity program is informed by industry standards, including the NIST Cybersecurity Framework. We maintain a dedicated team of privacy and security professionals, along with comprehensive privacy and security programs. Toast is regularly audited by internal and third-party auditors that attest to PCI Compliance and multiple SOC 1 and SOC 2 reports across our platform and financial technology products.
Transparent Disclosure. We continue to issue our annual ESG report, including disclosures informed by the Task Force on Climate- Related Financial Disclosures and Sustainability Accounting Standards Board standards for our sector.
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NON-EMPLOYEE DIRECTOR COMPENSATION
Non-Employee Director Compensation Program
We maintain a Non-Employee Director Compensation Program, which is designed to provide a total compensation package that enables us to attract and retain, on a long-term basis, high caliber members of our Board. Under our Non-Employee Director Compensation Program, all directors who are not employees of the company or any of its subsidiaries, collectively referred to as our non-employee directors, are eligible to receive compensation for their service on our Board.
Non-Employee Director Compensation Policy
In November 2022, our Board approved the Toast, Inc. Non-Employee Director Compensation Policy (the “Director Compensation Policy”), which became effective on January 1, 2023. The Director Compensation Policy governs the administration of our Non-Employee Director Compensation Program.
We conduct a benchmarking review on an annual basis of non-employee director compensation levels and programs among our Peer Group (as described in the Compensation Discussion and Analysis section) in order to provide market-competitive compensation to our non-employee directors. Under our Director Compensation Policy, our non-employee directors were compensated for service during 2025 according to the director cash retainer table below. All cash retainers are paid quarterly in arrears and prorated for partial years of service.
| Cash Retainer | ||||||||
| Annual Retainer for Board Membership | ||||||||
| Annual service on the Board | $50,000 | |||||||
Annual service as the chairperson of the Board | $40,000 (1) | |||||||
| Additional Annual Retainer for Committee Membership | ||||||||
| Annual service as audit committee chairperson | $25,000 | |||||||
| Annual service as member of the audit committee (other than chair) | $10,000 (2) | |||||||
| Annual service as compensation committee chairperson | $20,000 | |||||||
| Annual service as member of the compensation committee (other than chair) | $10,000 | |||||||
| Annual service as nominating and governance committee chairperson | $10,000 (3) | |||||||
| Annual service as member of the nominating and governance committee (other than chair) | $5,000 (4) | |||||||
(1)Following a review by the compensation committee in October 2025, this cash retainer was updated to $75,000 for service during 2026.
(2)Following a review by the compensation committee in October 2025, this cash retainer was updated to $12,500 for service during 2026.
(3)Following a review by the compensation committee in October 2025, this cash retainer was updated to $12,000 for service during 2026.
(4)Following a review by the compensation committee in October 2025, this cash retainer was updated to $6,000 for service during 2026.
In addition, our Director Compensation Policy provides that, upon initial election or appointment to our Board, each new non-employee director will be granted a one-time grant of restricted stock units (“RSUs”) with a total value of $400,000 on the date of such director’s election or appointment (the “Director Initial Grant”), with the number of RSUs subject to the award determined as described below. The Director Initial Grant vests in substantially equal annual installments over three years, generally subject to continued service with us through each applicable vesting date. Each year thereafter, each non-employee director who continues as a non-employee director will be granted an annual award of RSUs with a total value of $225,000 on the date of grant (the “Director Annual Grant”), with the number of RSUs subject to the award determined as described below. The Director Annual Grant vests on the earlier of the one-year anniversary of the grant date or the next annual meeting of stockholders, generally subject to continued service with us through the applicable vesting date. In 2025, each continuing non-employee director
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received the Director Annual Grant on the date of our annual shareholder meeting in 2025. The number of RSUs granted to each non-employee director in 2025 was determined by dividing the total value by the average closing market price of one share of our Class A common stock over the trailing 10 trading days ending on the last trading day immediately prior to the grant date. All outstanding Director Initial Grants and Director Annual Grants awarded to our non-employee directors under the Director Compensation Policy will become fully vested and nonforfeitable upon a Sale Event (as defined in our 2021 Stock Option and Incentive Plan, as amended from time to time (the “2021 Plan”)), subject to such director’s continued service with us through the date of such Sale Event.
Employee directors receive no additional compensation for their service as a director beyond the compensation they receive for serving as our officers. We also reimburse all reasonable out-of-pocket expenses incurred by our non-employee directors for their attendance at meetings of our Board or any committee thereof.
The aggregate amount of compensation in any calendar year, including both equity compensation that may be granted in such year, as calculated based on the grant date fair value, and cash compensation paid, to any non-employee director for service as a non-employee director cannot exceed $1,200,000.
Non-Employee Director and Officer Stock Ownership Policy
Under the Toast, Inc. Non-Employee Director and Officer Stock Ownership Policy, Toast non-employee directors are required to own shares of Toast common stock equivalent in value to five (5) times the annual Board cash retainer then in effect. Non-employee directors will have until the later of 1) December 31, 2027, or 2) five (5) years from the date they joined the Board, to meet this requirement. There is a two-year grace period to meet the guidelines, should an individual fall out of compliance (i) solely as a result of a decline in the market price of Toast Class A common stock after having previously met the guidelines or (ii) if the guidelines are changed. Only shares directly owned by, or beneficially owned in a grantor trust or similar instrument for the benefit of, the non-employee director and/or direct family members and for which the non-employee director has voting and disposal rights and vested deferred stock units (“DSUs”) held by the non-employee director issued under our Deferred Compensation Program (as defined below) will count towards share ownership under this policy. See “Executive Compensation” below, for information about stock ownership requirements under this policy for our executive officers.
Deferred Compensation Program
In November 2023, our Board approved the Toast, Inc. Deferred Compensation Program (“the Deferred Compensation Program”). Under this nonqualified deferral program which went into effect on January 1, 2024, non-employee directors may elect to defer receipt of their annual cash retainers, their Director Annual Grant, or both. Deferral elections must be submitted in writing before the end of the calendar year preceding the calendar year in which the deferred compensation relates. The participant may direct the investment of deferred cash retainer amounts to select notional investment alternatives. Deferred restricted stock units will be converted to DSUs on a one-to-one basis upon vesting and will be credited to the participant’s account. The period of deferral will cease upon the earliest of (a) the date a non-employee director ceases to serve as a member of our Board and incurs a “separation from service” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”), (b) the consummation of a Sale Event (as defined in the 2021 Plan), so long as such Sale Event constitutes a “change in control event” within the meaning of Section 409A, (c) the death of the non-employee director, or (d) the date the non-employee director experiences a disability as defined pursuant to the Deferred Compensation Program. Upon the cessation of the deferral period, amounts credited to a participant’s cash account will be settled in a single lump sum in cash, while deferred stock units will be settled in a single lump sum in shares of our Class A common stock (with any fractional shares paid in cash).
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Non-Employee Director Compensation Table
The following table provides information regarding the total compensation that was earned by or paid to each of our non-employee directors in the fiscal year ended December 31, 2025. Mr. Narang and Mr. Fredette are members of our Board, but as employees of our company during 2025, they did not receive any compensation from us for their service on our Board. See the section titled “Executive Compensation” for more information on the compensation paid to or earned by Mr. Narang and Mr. Fredette as named executive officers for the fiscal year ended December 31, 2025.
| Name | Fees Earned or Paid in Cash ($) | Stock Awards ($) (1) | Total ($) | ||||||||
| Paul Bell (2) | 60,000 | 218,334 | 278,334 | ||||||||
| Kent Bennett (3) | 65,000 | 218,334 | 283,334 | ||||||||
| Susan Chapman-Hughes (4) | 75,000 | 218,334 | 293,334 | ||||||||
| Mark Hawkins (5) | 125,000 | 218,334 | 343,334 | ||||||||
| Deval Patrick (6) | 60,000 | 218,334 | 278,334 | ||||||||
| Hilarie Koplow-McAdams (7) | 60,000 | 218,334 | 278,334 | ||||||||
| Anu Bharadwaj (8) | 8,333 | 410,414 | 418,747 | ||||||||
| David Yuan (9) | 25,000 | — | 25,000 | ||||||||
| Christopher Comparato (10) | 20,833 | — | 20,833 | ||||||||
(1)The amounts reported represent the aggregate grant date fair value of the RSU awards granted to the non-employee directors (other than Mr. Yuan and Mr. Comparato, who did not receive an award because they ceased serving as a non-employee director) calculated in accordance with Financial Accounting Standards Board (“FASB”), Accounting Standards Codification (“ASC”) Topic 718. Such grant date fair value does not take into account any estimated forfeitures. The grant date fair value of the RSUs was calculated by multiplying the closing price of the underlying shares of Class A common stock on the date of grant by the number of RSUs granted. The amounts reported in this column reflect the accounting cost for the stock awards, and do not correspond to the actual economic value that may be received upon issuance of shares of Class A common stock, or any sale of any of the underlying shares of Class A common stock.
(2) Mr. Bell held 5,256 RSUs as of December 31, 2025.
(3) Mr. Bennett held 5,256 RSUs as of December 31, 2025.
(4) Ms. Chapman-Hughes held 5,256 RSUs as of December 31, 2025. Pursuant to the Deferred Compensation Program, Ms. Chapman-Hughes has elected to defer all 5,256 RSUs upon vesting.
(5) Mr. Hawkins held 5,256 RSUs as of December 31, 2025.
(6) Mr. Patrick held 5,256 RSUs as of December 31, 2025. Pursuant to the Deferred Compensation Program, Mr. Patrick has elected to defer all 5,256 RSUs upon vesting.
(7) Ms. Koplow-McAdams held 5,256 RSUs as of December 31, 2025.
(8) Ms. Bharadwaj held 10,699 RSUs as of December 31, 2025.
(9) Mr. Yuan held 0 RSUs as of December 31, 2025. Mr. Yuan departed from the Board on June 13, 2025. The amounts shown represent compensation for services through his departure date.
(10) Mr. Comparato held 0 RSUs as of December 31, 2025. Mr. Comparato departed from the Board on June 13, 2025. The amounts shown represent compensation for his services through his departure date.
The following table sets forth the aggregate number of DSUs accumulated in each director’s deferral account as of December 31, 2025 vested in 2025 or in prior years.
| Name | Accumulated DSUs | ||||
| Susan Chapman-Hughes | 9,712 | ||||
| Deval Patrick | 9,712 | ||||
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PROPOSAL TWO:
RATIFICATION OF APPOINTMENT OF
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Our audit committee has engaged Ernst & Young LLP (“EY”) as our independent registered public accounting firm to perform the audit of our financial statements for the fiscal year ending December 31, 2026, and we are asking you and other stockholders to ratify this appointment. During the fiscal year ended December 31, 2025, EY served as our independent registered public accounting firm.
Although ratification of the appointment of EY is not required by our Bylaws or otherwise, our Board is submitting the appointment of EY to stockholders for ratification as a matter of good corporate governance. In the event that a majority of the votes properly cast on this proposal do not ratify this appointment of EY, our audit committee will reconsider whether or not to retain EY. Even if the appointment is ratified, our audit committee in its discretion may direct the appointment of a different independent registered public accounting firm at any time during the year if they determine that such a change would be in the best interests of the stockholders.
We expect that a representative of EY will attend the Annual Meeting and the representative will have an opportunity to make a statement if he or she so chooses. The representative will also be available to respond to appropriate questions from stockholders.
Policy on Audit Committee Pre-Approval of Audit and Permissible Non-Audit Services of Independent Registered Public Accounting Firm
We have adopted a policy under which our audit committee must pre-approve all audit and permissible non-audit services to be provided by the independent registered public accounting firm. As part of its review, our audit committee also considers whether the categories of pre-approved services are consistent with the rules on accountant independence of the SEC and the Public Company Accounting Oversight Board. Our audit committee has pre-approved all services performed by the independent registered public accounting firm since the pre-approval policy was adopted prior to our initial public offering (“IPO”).
Audit Fees
The following table sets forth the fees billed or to be billed by EY and its affiliates for professional services rendered with respect to the fiscal years ended December 31, 2025 and 2024. All of these services were approved by our audit committee (in thousands).
| Fee Category | Fiscal 2025 | Fiscal 2024 | ||||||||||||
Audit Fees (1) | $ | 3,381 | $ | 3,390 | ||||||||||
| Audit-Related Fees (2) | 7 | 10 | ||||||||||||
| Tax Fees (3) | 451 | 243 | ||||||||||||
| All Other Fees (4) | — | — | ||||||||||||
| Total Fees | $ | 3,839 | $ | 3,643 | ||||||||||
(1)Audit Fees consist of fees for professional services provided in connection with the audit of our financial statements, reviews of our quarterly financial statements and accounting consultations billed as audit services.
(2)Audit-Related Fees consist of fees billed for assurance and related services that are reasonably related to the performance of the audit or review of our financial statements and not reported under “Audit Fees.”
(3)Tax Fees consist of fees for professional services for federal, state and international tax compliance, tax advice and tax planning.
(4)All Other Fees consist of aggregate fees billed for products and services provided by the independent registered public accounting firm other than those disclosed above.
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Vote Required
The ratification of the appointment of Ernst & Young LLP as our independent registered public accounting firm for our fiscal year ending December 31, 2026 requires the affirmative vote of a majority of the votes properly cast on this proposal. Abstentions and broker non-votes, if any, will have no effect on the outcome of this proposal.
Recommendation of our Board
OUR BOARD RECOMMENDS THAT YOU VOTE “FOR” RATIFICATION OF THE APPOINTMENT OF ERNST & YOUNG LLP AS OUR INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FOR THE FISCAL YEAR ENDING DECEMBER 31, 2026.
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REPORT OF THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS
The audit committee is a committee of the Board comprised solely of independent directors as required by the listing standards of the NYSE and rules and regulations of the SEC. The audit committee operates under a written charter approved by our Board, which is available on our website at investors.toasttab.com. The composition of the audit committee, the attributes of its members and the responsibilities of the audit committee, as reflected in its charter, are intended to be in accordance with applicable requirements for corporate audit committees. The audit committee reviews and assesses the adequacy of its charter and the audit committee’s performance on an annual basis.
With respect to our financial reporting process, our management is responsible for (1) establishing and maintaining internal controls and (2) preparing our financial statements. Our independent registered public accounting firm, EY, is responsible for performing an independent audit of our financial statements. It is the responsibility of the audit committee to oversee these activities. It is not the responsibility of the audit committee to prepare our financial statements. These are the fundamental responsibilities of management. In the performance of its oversight function, the audit committee has:
1.reviewed and discussed the audited financial statements with management and EY;
2.discussed with EY the matters required to be discussed by the statement on Auditing Standards No. 1301, as adopted by the Public Company Accounting Oversight Board (“PCAOB”) and those required by the SEC; and
3.received the written disclosures and the letter from EY required by applicable requirements of the PCAOB regarding the independent accountant’s communications with the audit committee concerning independence and has discussed with EY its independence.
Based on the audit committee’s review and discussions with management and EY, the audit committee recommended to the Board that the audited financial statements be included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2025 for filing with the SEC.
Respectfully submitted by the members of the audit committee of the Board:
Paul Bell
Mark Hawkins
Hilarie Koplow-McAdams
The information contained in this audit committee report shall not be deemed to be “soliciting material,” “filed” with the SEC, subject to Regulations 14A or 14C of the Exchange Act, or subject to the liabilities of Section 18 of the Exchange Act. No portion of this audit committee report shall be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act, through any general statement incorporating by reference in its entirety the proxy statement in which this report appears, except to the extent that we specifically incorporate this report or a portion of it by reference. In addition, this report shall not be deemed filed under either the Securities Act or the Exchange Act.
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PROPOSAL THREE:
ADVISORY VOTE ON NAMED EXECUTIVE OFFICER COMPENSATION
We are providing our stockholders the opportunity to vote to approve, on an advisory, non-binding basis, the compensation of our named executive officers as disclosed in this proxy statement in accordance with the SEC’s rules. This proposal, which is commonly referred to as “say-on-pay,” is required by the Dodd-Frank Act, which added Section 14A to the Exchange Act.
The section of this proxy statement titled “Executive Compensation” beginning on page 32, including “Compensation Discussion and Analysis,” describes in detail our executive compensation programs and the decisions made by our compensation committee. Our executive compensation programs are designed to reward value creation for stockholders and to attract, motivate, and retain our executive officers, who are critical to our success. Under these programs, our named executive officers are rewarded for the achievement of our short- and long-term strategic and financial goals, which we believe serves to enhance short- and long-term value creation for our stockholders. Our compensation programs contain elements of cash and equity-based compensation and are designed to align the interests of our executives with those of our stockholders and to pay for performance. We have adopted best practices to ensure our executive compensation programs are appropriately managed and well-governed. Accordingly, we ask our stockholders to approve, on a non-binding, advisory basis, the following resolution at the Annual Meeting:
RESOLVED, that the compensation paid to the Company’s named executive officers as disclosed pursuant to Item 402 of Regulation S-K, including the Compensation Discussion and Analysis, compensation tables and accompanying narrative discussion, is hereby APPROVED.
Vote Required
The approval, on an advisory basis, of the compensation of our named executive officers requires the affirmative vote of a majority of the votes properly cast on this proposal. Abstentions and broker non-votes will have no effect on the outcome of this proposal.
As an advisory vote, this proposal will not be binding on the Company, our Board or our compensation committee in any way. As such, the results of the vote will not be construed to create or imply any change to the fiduciary duties of our Board. Notwithstanding the advisory (non-binding) nature of this vote, our Board values the opinions of our stockholders, and will consider the outcome of the vote when making future compensation decisions for our named executive officers.
Recommendation of our Board
OUR BOARD RECOMMENDS THAT YOU VOTE “FOR” THE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS.
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EXECUTIVE OFFICERS
The following table identifies certain information about our executive officers, including their ages, as of March 31, 2026:
| Name | Age | Position | ||||||||||||
| Aman Narang | 43 | CEO, Co-Founder, and Director | ||||||||||||
| Elena Gomez | 56 | President, CFO | ||||||||||||
Stephen Fredette | 42 | President, Co-Founder, and Director | ||||||||||||
| Jonathan Vassil | 49 | Chief Revenue Officer | ||||||||||||
Brian Elworthy | 45 | General Counsel and Corporate Secretary | ||||||||||||
Executive Officers
Please refer to “Continuing Directors” for Mr. Fredette’s and Mr. Narang’s biographies.
Elena Gomez. Ms. Gomez has been our Chief Financial Officer since May 2021 and our President since February 2025. Previously, Ms. Gomez served as the Chief Financial Officer of Zendesk, Inc., a global customer service software company, from May 2016 to May 2021. From July 2010 to April 2016, Ms. Gomez served in senior finance roles at Salesforce, a provider of customer relationship management services, including as Senior Vice President of Finance and Strategy and Senior Vice President of Go-to-Market Distribution. Ms. Gomez has served on the boards of directors of Smartsheet Inc., a software as a service (“SaaS”) collaboration and work management platform provider, from October 2017 until June 2024 and PagerDuty, Inc., a SaaS incident response platform provider, since October 2018. Ms. Gomez holds a B.S. in Business Administration from the Haas School of Business, University of California, Berkeley.
Jonathan Vassil. Mr. Vassil has been our Chief Revenue Officer since January 2022. Previously, he led the Company’s Sales and Onboarding organizations from August 2017 until January 2022. Mr. Vassil has extensive experience in growth businesses and offers a deep background in small-to-medium business sales, operations, and marketplace development. Mr. Vassil has served on the board of several early-stage startup companies. Prior to joining the Company, Mr. Vassil held several senior leadership roles at GolfNow, a subsidiary of Comcast Corporation, Orderup, and Groupon, Inc. Mr. Vassil holds a B.S. in Behavioral Sciences from the University of Maryland and an M.B.A. from the University of Virginia’s Darden School of Business.
Brian Elworthy. Mr. Elworthy has been our General Counsel since November 2016 and our Secretary since August 2021, and oversees the legal, compliance, and government affairs functions at our Company. Previously, Mr. Elworthy was Assistant General Counsel at inVentiv Health Inc., now Syneos Health, Inc., from July 2014 to November 2016 and an Associate at Ropes & Gray LLP from September 2008 to June 2014. Mr. Elworthy holds a J.D. from Georgetown University and a B.A. from Middlebury College.
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EXECUTIVE COMPENSATION
COMPENSATION DISCUSSION AND ANALYSIS
Named Executive Officers
The compensation provided to our named executive officers for the year ended December 31, 2025 is detailed in the 2025 Summary Compensation Table and this Compensation Discussion and Analysis (“CD&A”). Our named executive officers are:
•Aman Narang, our CEO and Co-Founder;
•Elena Gomez, our President and CFO;
•Stephen Fredette, our President and Co-Founder;
•Jonathan Vassil, our Chief Revenue Officer; and
•Brian Elworthy, our General Counsel and Corporate Secretary.
The following discussion contains forward-looking statements that are based on our current plans, considerations, expectations, and determinations regarding existing and future compensation programs. The actual amount and form of compensation and the compensation policies and practices that we adopt in the future may differ materially from currently planned programs as summarized in this discussion.
Executive Summary
2025 Financial and Operational Performance Highlights
Toast delivered strong performance in 2025. The following business highlights provide context for the executive compensation decisions that were made with respect to 2025 and which reflected our performance in the fiscal year ended December 31, 2025.
We delivered strong growth and financial results: In 2025, our GAAP subscription services and financial technology solutions gross profit was up 33% year over year to $1,818 million, and our Non-GAAP subscription services and financial technology solutions gross profit1 (“RGP”) increased 33% year over year to $1,887 million. Our GAAP net income increased to $342 million in full year 2025 from $19 million for the full year 2024. Adjusted EBITDA2 in 2025 was $633 million compared to Adjusted EBITDA of $373 million in 2024.
We increased our market share among US restaurants and expanded our presence in newer areas: We added a record 30,000 net new locations in 2025, ending the year with approximately 164,000 locations using Toast to power their businesses. These results reflect increased market share among our core US restaurant customers and growing traction in our newer growth areas across enterprise, international, and retail. Across these new growth areas, we crossed 10,000 live locations in the second quarter of 2025, announced marquee enterprise wins, such as Applebee’s, and entered into Australia, our fourth international market. We announced new partnerships with American Express and Uber Technologies to continue expanding our ecosystem and value we provide to our customers.
We continued to innovate our platform and product offerings, aiming to drive differentiation through data and artificial intelligence (“AI”): Throughout 2025, we launched over 500 new features and enhancements including Toast IQ, our conversational AI assistant. Toast IQ is built into our platform and uses real-time and historical data from our customers’ operations to help surface actionable business insights, enable operators to ask questions in natural language, and take actions directly within the Toast
1 Non-GAAP subscription services and financial technology solutions gross profit is a non-GAAP financial measure. Please refer to Appendix A for a description and reconciliation of this non-GAAP financial measure.
2 Adjusted EBITDA is a non-GAAP financial measure. Please refer to Appendix A for a description and reconciliation of this non-GAAP financial measure.
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system. Other notable releases include Toast Go 3, the latest evolution of our handheld device designed to help restaurants deliver faster, smarter service, and Toast Advertising, which is designed to help customers drive efficiency and guest demand.
Executive Compensation Philosophy and Guiding Principles
Our compensation philosophy and guiding principles provide a framework for the development and management of our executive compensation programs and practices.
Competitive: Our compensation programs should be market-competitive, enabling Toast to attract and retain top talent in a highly-competitive technology market.
Long-Term Orientation: Equity plays an important role in our executive compensation programs because it is an incentive for long-term value creation and aligns the interests of our leadership team with those of our stockholders.
Fair and Fact-Based: We believe compensation decisions should be made based on objective and relevant information and support internal pay equity and we take into account industry trends and market data when making executive compensation decisions.
Pay-for-Performance: Our incentive programs align short- and long-term realizable compensation with company and stock price performance. We also believe in differentiating compensation based on individual performance in recognition of innovation, excellence in delivery and outsized impact.
Outcome-Oriented: We align compensation with measurable outcomes that drive Toast’s success. Our programs are designed to reward impact, accountability, and results-recognizing employees for delivering against individual, team, and company objectives.
NEO Compensation Program Elements
Consistent with the executive compensation philosophy and guiding principles described above, Toast’s executive compensation program is designed to deliver competitive compensation opportunities while emphasizing performance-based and long-term incentives that align the interests of our executives with those of our stockholders.
Total direct compensation for our named executive officers (“NEOs”) consists of three primary elements: base salary, short-term incentive payments under our annual bonus plan and long-term equity-based incentives in the form of stock options and RSUs. Each element serves a distinct purpose within the overall compensation framework and together supports Toast’s objectives of attracting and retaining high-performing leaders, rewarding execution against annual operating priorities, and promoting sustained long-term value creation.
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| Compensation Element | Objective | Key Features | ||||||
Base Salary | Provide competitive fixed compensation reflecting scope of role, experience, and leadership responsibilities | •Rewards ongoing leadership and execution •Provides stable compensation for day-to-day performance •Reviewed periodically considering market data and individual contributions | ||||||
Short-Term Incentive Bonus Plan | Reward achievement of annual Company and individual performance objectives | •Performance-based cash incentive •Funded based on Recurring Gross Profit (RGP) and Adjusted EBITDA performance •Individual performance modifier applied •Incentivizes execution against annual operating and profitability goals | ||||||
Long-Term Equity-Based Incentive Compensation - Stock Options | Align executives’ interests with long-term stockholder value creation | •Value realized only through stock price appreciation •Encourages ownership mindset and long-term decision-making •Multi-year vesting promotes retention | ||||||
Long-Term Equity-Based Incentive Compensation - RSUs | Support retention and sustained long-term performance alignment | •Service-based vesting over four years •Value tied directly to stock price performance •Recognizes ongoing and future leadership contributions | ||||||
The charts below reflect the target total direct compensation mix of our CEO and NEOs, a significant majority of which is variable or equity-based, reinforcing alignment among executive pay outcomes, Company performance, and long-term stockholder value creation. Percentages are based on annualized base salary, target short-term incentive opportunity, and the grant date fair value of long-term incentive awards, as reflected in the Grants of Plan-Based Awards table.
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Pay Practices and Governance
Our compensation committee has adopted the following best practices to ensure our executive compensation programs are appropriately managed and well-governed.
WHAT WE DO | ||
☑ Pay-for-Performance Philosophy: The majority of our executive officers’ compensation is directly linked to corporate performance, differentiated for individual performance or stock performance. | ||
☑ Compensation At-Risk: The majority of our executive officers’ compensation is “at-risk” based on our corporate performance, as well as equity-based, to align the interests of our executives and stockholders. | ||
☑ Multi-Year Vesting on Equity Awards: Our executive officers’ long-term equity incentives vest over multiple years to encourage long-term value creation to align the interests of our executives and stockholders. | ||
☑ Annual Compensation Peer Group Review: We conduct an external peer group review each year with our compensation committee’s independent, third-party compensation consultant to align compensation decisions with market based practices. | ||
☑ Independent Compensation Consultant: Our compensation committee retains the services of an independent, third-party compensation consultant to provide advice on executive compensation pay and practices. | ||
☑ Committee Independence: Our compensation committee is composed entirely of independent directors as defined under the rules of the NYSE. | ||
☑ Annual Say-On-Pay Vote: We put our executive compensation to an advisory vote of stockholders annually. | ||
☑ 10b5-1 Plans: We require our executive officers to plan any stock sales in advance through the use of 10b5-1 plans. | ||
☑ Stock Ownership Guidelines: Our directors and executive officers are subject to ownership guidelines. | ||
☑ Clawback Policy: We have adopted a compensation recovery policy applicable to all of our executive officers. | ||
WHAT WE DON’T DO | ||
☒ No Single-trigger Equity Vesting: Under our equity plan and severance and change in control policies, in a change in control where equity awards are assumed, continued or substituted by a successor entity, such awards will vest only if the individual has a qualifying termination of employment within a specified period of time following the change in control. | ||
☒ No 280G Excise Tax or Gross-up Payments: Our severance and change in control policy does not include payment for 280G excise taxes or tax gross-ups. | ||
☒ No Special Health and Welfare Benefits. Our executive officers participate in our health and welfare benefits programs on the same basis as our other employees. | ||
☒ No Single-Year Vesting: To encourage long-term value creation, our equity awards vest over multiple years. | ||
☒ No Discounting of Stock Options or Repricing of Underwater Options: We do not permit discounting of stock options or repricing of underwater options. | ||
☒ No Minimum Guaranteed Annual Cash Incentives: Our annual short term incentive program does not guarantee any minimum level of payments. | ||
☒ No Hedging or Pledging our Equity Securities: Our Stock Trading Policy generally prohibits our directors and employees, including our executive officers, from hedging or pledging our securities. | ||
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Say-on-Pay Vote on Executive Compensation
At our 2025 Annual Meeting, we conducted a non-binding, advisory vote on the compensation of our named executive officers (a “Say-on-Pay vote”). Approximately 99% of the votes cast on this proposal expressed support for the compensation program offered to our named executive officers as disclosed in last year’s proxy statement. We appreciate our stockholders’ support and viewpoint expressed by the voting results on our current executive compensation structure and policies. As such, we did not introduce any changes to our 2025 executive compensation arrangements as a result of the Say-on-Pay vote.
Consistent with the recommendation of our Board and the preference of our stockholders as reflected in the non-binding, advisory vote on the frequency of future Say-on-Pay votes held at our 2022 Annual Meeting, we intend to hold an annual Say-on-Pay vote. Because we value the opinions of our stockholders, the Board and our compensation committee will consider the outcome of the Say-on-Pay vote, as described in Proposal No. 3 of this proxy statement, as well as feedback received throughout the year, when making compensation decisions for our named executive officers in the future.
Our Executive Compensation Components and Pay Decisions
The compensation of our named executive officers is composed primarily of a combination of base salary, short-term incentive payments, and long-term incentive compensation in the form of stock options and RSUs. The following describes our executive compensation programs for the fiscal year ended December 31, 2025.
Cash Compensation
Our compensation committee reviewed compensation for our executives, including our named executive officers, during 2025 and approved changes to cash compensation informed by our compensation philosophy and based on its review of relevant factors noted in “Oversight for Our Executive Compensation Programs” below, including job responsibilities, scope and impact, market data for comparable roles, individual performance, and internal pay parity considerations.
Base Salary
In the first quarter of 2025, based on its evaluation, our compensation committee approved the following changes to base salaries.
| Named Executive Officer | 2024 Base Salary | 2025 Base Salary (1) | Percentage Change | ||||||||
Aman Narang (2) | $400,000 | $500,000 | 25% | ||||||||
| Elena Gomez | $454,425 | $468,058 | 3% | ||||||||
Stephen Fredette (3) | $20,000 | $450,000 | N/M | ||||||||
| Jonathan Vassil | $394,769 | $406,612 | 3% | ||||||||
| Brian Elworthy | $394,769 | $406,612 | 3% | ||||||||
(1)2025 base salary changes (where applicable) became effective April 1, 2025 unless otherwise noted.
(2)In February 2025, our compensation committee approved a change in Mr. Narang’s 2025 annual base salary to $500,000 after a review of market data, as described in more detail in the Use of Market Data section below.
(3)Mr. Fredette’s year-over-year increase is not directly comparable due to the limited salary provided in 2024, which was intended to cover employee payroll benefit plan contributions and payroll taxes with minimal resulting net pay after applicable withholding. In February 2025, our compensation committee approved a change in Mr. Fredette’s 2025 annual base salary to $450,000 after a review of market data, as described in more detail in the Use of Market Data section below.
Short-Term Incentive Bonus Plan
Our short-term incentive bonus plan is funded based upon, and designed to incentivize and reward the attainment of, company-wide financial or strategic goals, ensuring consistent and aligned focus across the Company. In addition, performance against individual business objectives serves as a multiplier, creating an incentive and reward for the achievement of strategic, financial and operational goals important to a given function in driving the growth, development and operation of our business. During
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2025, all of our NEOs were eligible for and received an annual bonus award based upon company performance and the achievement of business objectives, as approved by our compensation committee and further described below. Our bonus period is on an annual basis, which aligns the bonus performance period with our annual financial and operating plans.
Our short-term incentive bonus plan is administered under the Toast, Inc. Senior Executive Cash Incentive Bonus Plan (the “Incentive Plan”), which is our executive short-term incentive plan governing bonus payments to eligible executives, including our named executive officers. Our compensation committee has the sole discretion and authority to determine, approve and administer bonus payments to eligible executives under the Incentive Plan. Our compensation committee will establish a target annual bonus opportunity for each eligible executive for each performance period, which is expressed as a percentage of annual base salary.
For 2025, our compensation committee established a target performance-based cash bonus opportunity for each of our named executive officers that was based on a percentage of each executive officer’s base salary. The target performance-based cash bonus opportunity was determined based on the compensation committee’s review of relevant factors noted in “Oversight for Our Executive Compensation Programs” below.
| Named Executive Officer | 2024 Target Bonus Percentage | 2025 Target Bonus Percentage (1) | Percentage Change | ||||||||
Aman Narang | 100% | 100% | —% | ||||||||
| Elena Gomez | 75% | 75% | —% | ||||||||
| Stephen Fredette (2) | — | 60% | N/A | ||||||||
| Jonathan Vassil | 100% | 100% | —% | ||||||||
| Brian Elworthy | 60% | 60% | —% | ||||||||
(1)2025 target bonus percent changes (where applicable) became effective January 1, 2025.
(2)Mr. Fredette did not have an established target bonus in 2024. In February 2025, our compensation committee set Mr. Fredette’s 2025 annual target bonus at 60% of annual base salary, which it determined was a market competitive opportunity relative to his experience, role, and responsibility.
2025 Bonus Funding Goals and MBOs (as defined below):
In February 2025, our compensation committee selected RGP and Adjusted EBITDA as the bonus funding goals for the 2025 bonus performance period, which began on January 1, 2025 and ended on December 31, 2025.
Our compensation committee selected these metrics because they were key measures of our top line growth and the profitability and efficiency of our business, and their use in our compensation program incentivizes our NEOs to increase the value of our enterprise for our shareholders. The RGP goal was weighted 70% because it is an indicator of the Company’s growth and scale. Adjusted EBITDA was weighted 30% and selected because it measures profitability. Performance against each goal was measured independently. Achievement against the goals for each applicable metric governs the funding for the portion of the bonus associated with that metric. When approving the goals, our compensation committee determined that financial results from acquisitions during the bonus period would not be taken into account when determining performance against bonus funding goals for such period to ensure we reward the management only for the performance they directly influenced.
Our compensation committee set rigorous bonus incentive plan targets for the RGP and Adjusted EBITDA goals that are challenging to attain and require significant effort by our executive officers to achieve. The RGP and Adjusted EBITDA goals were more ambitious in 2025 than 2024 at all levels (threshold, target, and maximum). In order for the portion of bonus associated with each applicable metric to be funded at 100%, the target financial goal for that metric must be met. For each metric, our compensation committee also approved threshold goals below target which, if met, would result in 50% bonus funding for the RGP metric and 75% funding for the Adjusted EBITDA metric. Performance below the threshold goal would result in no funding for the portion of bonus associated with that metric. Our compensation committee also approved above-target stretch goals, which if met or exceeded would result
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in maximum funding of 160% for the RGP portion of the bonus and 125% for the Adjusted EBITDA portion of the bonus. Funding for performance falling between the threshold and target or target and maximum goals would be interpolated in a straight-line fashion to determine funding for the portion of bonus associated with that metric.
| Bonus Metric | Threshold | Target | Maximum | ||||||||
| RGP | 50% | 100% | 160% | ||||||||
| Adjusted EBITDA | 75% | 100% | 125% | ||||||||
Each executive officer, including our named executive officers, also had established individual business objectives (“MBOs”) for the first half of the year (“H1”) and the second half of the year (“H2”). Some of the MBOs were shared objectives, either across the entire executive team or shared by certain functions, and some were individual objectives. Performance against the H1 and H2 MBOs was evaluated at the end of each applicable period, resulting in an MBO achievement percentage (“MBO %”) for the period. The average of the H1 and H2 MBO % was then calculated to determine each executive’s blended MBO % for 2025. The blended MBO % for 2025 was applied as a multiplier to the funded bonus amount to determine the executive’s final approved bonus payment for the applicable bonus period. Since MBO % is used as a multiplier, no bonus can be earned if the RGP and Adjusted EBITDA funding goals are not met.
Annual Funded Bonus * Blended MBO % for 2025 = Individual Bonus Payment
2025 Bonus Achievement:
Actual 2025 RGP and Adjusted EBITDA results fell between the target and maximum goals. Based upon the combination of performance between the two metrics, our compensation committee approved 140% funding for executive bonuses for the 2025 bonus period with no adjustment made.
2025 Bonus Funding Goal Achievement:
| Metric* | Goal Achievement | Bonus Achievement | Metric Weighting | Bonus Funding | ||||||||||||||||
RGP | Between Target and Maximum | 149% | * | 70% | = | 104% | ||||||||||||||
| Adjusted EBITDA | Target Goal Exceeded | 121% | * | 30% | = | 36% | ||||||||||||||
| Total | 100% | 140% | ||||||||||||||||||
* We are not disclosing the specific numbers for the bonus funding metrics or the actual goal achievement because we believe disclosure would cause substantial competitive harm (for example, by providing competitors insight into our sales strategy and business operations) without adding to a meaningful understanding of our business. However, like performance targets for all metrics, our compensation committee has set performance goals at definitive, rigorous, and objective levels so as to require significant effort and achievement by our executive team to be attained.
Our compensation committee also evaluated the performance of each executive against their individual MBOs for H1 and H2 and approved the blended 2025 MBO % for each executive. The MBOs for our named executive officers included challenging goals related to the growth of booked and live locations, the expansion of our business into new customer segments, developing strategic partnerships, product development, and initiatives relating to operational efficiency and cost management. Most of the individual MBOs were met, resulting in a blended MBO % as reflected in the table below, which reduced bonus payouts relative to the funding percentage achieved based on corporate performance.
For each eligible executive, the annual funded bonus was multiplied by the executive’s blended 2025 MBO % to determine the executive’s 2025 bonus payment as shown below.
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2025 Bonus Payments:
| Name | 2025 Target Bonus* | 2025 Funded Bonus Based on 140% Financial Goal Achievement | Individual Blended 2025 MBO % | 2025 Approved Bonus Payment** | 2025 Approved Bonus as % of Target Bonus | ||||||||||||
| Aman Narang | $475,342 | $665,479 | 92% | $612,241 | 129% | ||||||||||||
| Elena Gomez | $348,522 | $487,931 | 92% | $448,897 | 129% | ||||||||||||
| Stephen Fredette | $206,384 | $288,938 | 82% | $236,928 | 115% | ||||||||||||
| Jonathan Vassil | $403,692 | $565,169 | 96% | $542,562 | 134% | ||||||||||||
| Brian Elworthy | $242,215 | $339,101 | 94% | $318,755 | 132% | ||||||||||||
*As adjusted for changes in compensation during 2025.
**Numbers may not tie due to rounding.
Long-Term Equity-Based Incentive Compensation
We grant equity awards to our executive officers because they provide our executives with a strong link to our long-term performance, create an ownership culture, and align the interests of our executives and stockholders. Accordingly, although we do not have a formal policy specifically for our executive officers with respect to equity incentive award grants, the compensation committee considers the long-term equity incentive compensation awarded to our named executive officers to be a critical component of their total compensation.
For 2025, our compensation committee approved an equity grant value for each executive officer that was determined based on the relative scope and impact of the executive officer’s role at Toast, the executive officer’s contribution, performance and future growth potential, and a review of market-competitive equity grant values for similar roles at peer companies. Awards were granted in an equal mix of stock options and RSUs. The compensation committee determined to shift the mix for 2025 compared to the mix in 2024, which was 60% options and 40% RSUs, to improve the dilutive impact of our equity compensation, as well as the resiliency and retention profile of our program in volatile market conditions. The compensation committee believes that both stock options and RSUs directly link executives’ pay outcomes to performance and shareholder interests. Stock options deliver value to the executive if the price of our stock rises higher than the option exercise price and the award vests and is exercised by the executive. RSUs also provide an incentive to increase enterprise value over the long-term but also serve as a retention tool through business and market changes.
To encourage long-term performance focus, the stock options and RSUs granted to our executive officers in 2025 vest in equal quarterly increments over a four-year period, generally subject to continuous service with us through each applicable vesting date.
Our compensation committee approved grants of stock options and RSUs to our named executive officers during 2025 as summarized below. These grants were issued on March 10, 2025 pursuant to our 2021 Plan.
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| Name | Approved Grant Value ($) | Grant Value for Stock Options (1) | Grant Value for RSUs (2) | ||||||||
| Aman Narang (3) | $10,000,000 | $5,000,000 | $5,000,000 | ||||||||
| Elena Gomez | $5,500,000 | $2,750,000 | $2,750,000 | ||||||||
| Stephen Fredette | $4,500,000 | $2,250,000 | $2,250,000 | ||||||||
| Jonathan Vassil | $4,000,000 | $2,000,000 | $2,000,000 | ||||||||
| Brian Elworthy | $3,000,000 | $1,500,000 | $1,500,000 | ||||||||
(1)The number of stock options granted to our executive officers in 2025 was determined on the grant date as governed by our Equity Award Grant Policy, described below. The number of stock options granted was determined by dividing the portion of the approved grant value allocated to stock options by the fair value of the award on the date of grant calculated under ASC Topic 718. Stock options granted to our executive officers provide an option to purchase shares of our common stock subject to vesting and have a ten-year term. The exercise price per share ($33.49) is equal to the closing price of our Class A common stock on the date of grant.
(2)The number of RSUs granted was determined by dividing the portion of the approved grant value allocated to RSUs by the average closing market price of one share of our common stock over the trailing 10 trading days ending on the last trading day immediately prior to the grant date. Each RSU provides the holder with the right to receive one share of our Class A common stock when the RSU vests.
(3)The CEO expressed a preference for a reduced equity award for 2025 in light of the Company’s focus on financial discipline and managing equity dilution. The Board, in consultation with the compensation committee, reviewed and approved a reduced award in alignment with these considerations.
Oversight for Our Executive Compensation Programs
Our compensation committee oversees the design and operation of our executive compensation programs. A description of our compensation committee’s structure, roles and responsibilities can be found above under the heading “Corporate Governance—Board Meetings and Committees; Annual Meeting Attendance.”
Working with its compensation consultant, our compensation committee reviews and approves the compensation of our executive officers, except for our CEO. Our compensation committee recommends to our Board our CEO’s short-term incentive plan pay-out based on performance against our corporate goals for the prior fiscal year, as well as the other elements of his compensation package, including the base salary, short-term incentive plan opportunity and equity grant for the current fiscal year. Our CEO’s annual performance and compensation package is then evaluated and approved by our full Board.
In making decisions about the compensation of our executive officers, the compensation committee takes a broad-based approach and may consider a number of factors, such as:
•our executive compensation objectives;
•corporate growth and financial performance;
•the individual performance of each executive officer, and their expected future contributions in furthering our financial and operational success;
•relevant competitive market data and analyses as discussed below;
•the cost of replacing an executive officer;
•the current outlook of the market for executive talent generally;
•the current value, vesting schedule, and structure of historical compensation awards made to our executive officers; and
•internal pay equity, taking into consideration each individual’s impact on our business and performance.
Role of the Independent Compensation Consultant: Our compensation committee has the authority under its charter to directly retain, review fees for, and terminate advisors and consultants as it deems
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necessary to assist in the fulfillment of its responsibilities. Our compensation committee has retained an independent compensation consultant (“the compensation consultant”) who provides information and analyses that serve as a reference point for setting executive and director compensation levels and advises our compensation committee on compensation decisions. The compensation consultant also advises our compensation committee on the structure of executive and director compensation programs, including the design of incentive plans, the forms and mix of compensation, allocation of equity compensation, regulatory requirements and other topics relevant to executive and director compensation. During the fiscal year ended December 31, 2025, our compensation committee retained Compensia as its compensation consultant. Our compensation committee reviews the independence of its compensation consultant annually and found no conflict of interest with Compensia during its 2025 independence review.
Compensia did not provide any additional services beyond providing advice on the amount and form of compensation for our directors and management during the fiscal year ended December 31, 2025. Our compensation committee has adopted protocols governing if and when its compensation consultant’s advice to our compensation committee can be shared with management, recognizing that, in advising our compensation committee, it is necessary for the compensation consultant to interact with management to gather information. Our compensation committee also determines the appropriate forum for receiving guidance from its compensation consultant. Where appropriate, our compensation committee invites management to provide context that may inform its decision-making. In other cases, our compensation committee receives the compensation consultant’s advice in executive sessions where management is not present. Our compensation committee also engages directly with its compensation consultant between meetings, as deemed necessary by our compensation committee. This approach further allows our compensation committee to receive objective advice from the compensation consultant and establishes a forum for independent decisions about executive pay.
Role of the CEO: The CEO regularly attends a portion of each compensation committee meeting. He provides our compensation committee with his assessment of the performance of the other executive officers and provides recommendations for their compensation, which the compensation committee considers and may approve or modify. The CEO does not make recommendations to the compensation committee or participate in committee decision-making regarding his own compensation. Our compensation committee has delegated authority to our CEO to grant options and RSUs to certain employees who are not executive officers under specified guidelines.
Use of Market Data
Market Data and Reference Points: Our compensation committee reviews competitive market compensation for our executive roles provided by the compensation consultant and uses the information as a reference point in making decisions on compensation levels, the mix of base salary, target short-term and long-term incentives, and other executive pay practices. Our compensation committee uses the 25th to 75th percentiles of benchmarking data from our compensation peer group as reference points and the selection of a specific market reference point may vary for each pay element. Market data is only one factor considered in the compensation-setting process, and an individual named executive officer’s total compensation (or an element of compensation) in any given year may be set above or below market reference points, depending on a holistic consideration of relevant factors as outlined above. Our compensation committee has not adopted a practice of setting executive compensation solely aligned with a particular market reference point.
External Market Analysis and Peer Companies: Our compensation committee reviews market compensation levels at least annually to understand how our executive compensation program compares with the competitive market for executive talent. This assessment includes evaluation of base salary, and short- and long-term incentive opportunities against the executive compensation levels reported by a peer group of companies selected by our compensation committee as comparable to Toast. The compensation committee also considers market compensation information collected from survey sources. The compensation consultant supports our compensation committee in the selection of the peer company
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group and also provides the compensation committee with analyses of the peer company and survey executive compensation information.
Our compensation committee selected a group of peer companies (the “Peer Group”) in July 2024, which it used as a reference group in making executive compensation decisions for 2025, along with third party survey data where applicable. Criteria considered to determine the peer company group included industry (primarily targeted application software companies), gross profit over the preceding four quarters (between 0.25x and 4x our 2024 RGP); and market capitalization (between 0.25x and 4x our market capitalization as reported at the time of assessment). In addition, the compensation committee considered revenue growth, total shareholder return, business model similarity, and duration of time in operation as a public company. Based on its review of the peer companies against these criteria in July 2024, in consultation with the compensation consultant, the compensation committee did not make any changes to the peer group used as a reference group for making executive compensation decisions for 2024.
The group of peer companies our compensation committee selected in July 2024 as a reference group for making executive compensation decisions for 2025 is shown below:
Affirm Holdings, Inc. | HubSpot, Inc. | Smartsheet Inc. | ||||||
AppLovin Corporation | MongoDB Inc. | The Trade Desk, Inc. | ||||||
BILL Holdings Inc. | Paycom Software, Inc. | Twilio Inc. | ||||||
Datadog, Inc. | Paylocity Holding Corporation | Unity Software Inc. | ||||||
| DoorDash, Inc. | Procore Technologies, Inc. | ZoomInfo Technologies Inc. | ||||||
Dynatrace, Inc. | PTC Inc. | |||||||
Etsy, Inc. | Shift4 Payments, Inc. | |||||||
Our compensation committee, in consultation with the compensation consultant, reevaluated the peer company group in July 2025 in order to ensure all companies in the Peer Group continued to be appropriate comparators based on similar types of criteria used in the July 2024 evaluation. Based on the reevaluation, the compensation committee removed Smartsheet Inc., Etsy, Inc., PTC Inc., Unity Software Inc., and ZoomInfo Technologies Inc. and added Block, Inc., GoDaddy Inc., Klaviyo, Inc., PayPal Holdings Inc, Samsara Inc., and Workday, Inc. These changes were made to align the peer group more closely to our gross profit, market capitalization, and talent pools. The peer company group approved by our compensation committee in July 2025 was not used as a reference in the evaluation of executive compensation decisions for 2025 but was used for evaluating executive compensation decisions for 2026.
Other Compensation Practices and Policies
Severance and Change in Control Policy and CEO Severance Letter
Severance Policy
In June 2021, we adopted the Toast, Inc. Severance and Change in Control Policy (the “Severance Policy”), which provides certain severance benefits and accelerated vesting of equity awards to certain executives, including the named executive officers, each a “covered employee,” in the event of a qualified termination, including a qualified termination in connection with a change in control. We believe the Severance Policy supports the attraction and retention of senior leaders in a competitive market. We also believe that appropriately structured change in control benefits serve to minimize potential distraction caused by a transaction and reduce the risk that leaders will leave the organization before the transaction closes. The severance payments and benefits under the Severance Policy (and CEO Severance Letter, as applicable and as defined below) superseded any severance payments and benefits for which the covered employees were eligible under existing employment agreements or other agreements, plans, policies, or arrangements.
Pursuant to the Severance Policy, in the event of a termination by us for any reason other than due to “cause” (as defined in the Severance Policy), death, or disability that occurs outside of the period
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beginning three months prior to and ending 12 months following a “change in control,” as defined in the Severance Policy, (a “Change in Control Period”), subject to the covered employee’s execution and non-revocation of a release of claims in favor of Toast and our affiliates and continued compliance with all applicable restrictive covenants, we will pay the covered employee (i) 12 months of continued base salary, (ii) a lump sum cash payment equal to the covered employee’s target bonus for the year in which the termination date occurs to the extent not already paid and pro-rated to reflect the number of days of service provided in the year of termination, or a prorated target bonus, and (iii) if the covered employee was participating in our group health plan immediately prior to termination and elects COBRA health continuation, monthly cash payments for 12 months in an amount equal to the monthly employer contribution that we would have made to provide health insurance to the covered employee (and his or her eligible dependents) if the covered employee had remained employed by us. Additionally, notwithstanding anything in any applicable option agreement or stock-based award agreement, the unvested and outstanding time-based stock options and other time-based stock-based awards held by the covered employee immediately prior to termination that would have vested during the 12-month period following the termination date will accelerate and become fully vested. Awards that are solely performance-based and/or performance- and time-based will be governed by the terms of the applicable award agreement.
In the event of a (i) termination by us for any reason other than due to cause, death, or disability that occurs within a Change in Control Period or (ii) resignation by the covered employee for “good reason” (as defined in the Severance Policy) that occurs within 12 months following a change in control, in lieu of the foregoing benefits, and subject to the covered employee’s execution and non-revocation of a release of claims in favor of us and our affiliates and continued compliance with applicable restrictive covenants, we shall pay the covered employee: (i) an amount equal to 1.5 times the sum of (A) 12 months of base salary and (B) the covered employee’s target bonus, (ii) a prorated target bonus, and (iii) if the covered employee was participating in our group health plan immediately prior to termination and elects COBRA health continuation, monthly cash payments in an amount equal to the monthly employer contribution that we would have made to provide health insurance to the covered employee (and his or her eligible dependents) if the covered employee had remained employed by us until the earlier of 18 months following the date of termination or the date the covered employee becomes eligible for health benefits through another employer or otherwise becomes ineligible for COBRA. Additionally, notwithstanding anything in any applicable option agreement or stock-based award agreement, the covered employee will receive full accelerated vesting of any unvested and outstanding time-based stock options and other time-based stock-based awards held by the covered employee immediately prior to termination, and awards that are solely performance-based and/or performance- and time-based will be governed by the terms of the applicable award agreement.
For purposes of calculating the cash compensation payable under the Severance Policy to Mr. Fredette upon any termination event, the base salary input shall be an amount equal to the greater of his base salary immediately prior to the termination event and $250,000, and the target bonus input shall be an amount equal to the greater of his then-current target bonus and $150,000.
The payments and benefits provided under the Severance Policy in connection with a change in control may not be eligible for a federal income tax deduction by us pursuant to Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”). These payments and benefits may also subject a covered employee, including the named executive officers, to an excise tax under Section 4999 of the Code. If the payments or benefits payable to an eligible participant in connection with a change in control would be subject to the excise tax imposed under Section 4999 of the Code, then those payments or benefits will be reduced if such reduction would result in a greater net after-tax benefit to the applicable participant.
In August 2024, we adopted the Toast, Inc. 2024 Executive Severance and Change in Control Policy (the “2024 Severance Policy”). No named executive officer is currently a covered employee under the 2024 Severance Policy. For more details about the 2024 Severance Policy, please refer to Exhibit 10.1 to our Quarterly Report on Form 10-Q filed with the SEC on November 8, 2024.
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CEO Severance Letter
In conjunction with his promotion to CEO, we entered into a letter agreement with Mr. Narang on September 1, 2023 (the “CEO Severance Letter”), effective as of January 1, 2024, pursuant to which certain provisions of the Severance Policy were superseded solely with respect to Mr. Narang. These variations were determined following a review of competitive practice for severance and change in control benefits for the CEO role and based on evaluation of separation circumstances unique to our CEO position. The CEO Severance Letter provides for an amended definition of “good reason” for purposes of severance payments and benefits under the Severance Policy and provides that (i) upon a resignation by Mr. Narang for good reason outside of a Change in Control Period, he will be entitled to the same severance benefits as if he were terminated by us without cause outside of a Change in Control Period and (ii) upon a resignation by Mr. Narang for good reason within a Change in Control Period, he will be entitled to the same severance benefits as if he were terminated by us without cause during a Change in Control Period. In addition, the CEO Severance Letter provides that as long as Mr. Narang serves as our CEO, we will nominate him for re-election as a member of our Board and any payments or benefits due to Mr. Narang pursuant to the Severance Policy are subject to his resignation from our Board as of the effective date of the applicable termination event. Furthermore, the CEO Severance Letter provides that for purposes of calculating the cash compensation payable under the Severance Policy upon any termination event, the base salary input shall be an amount equal to the greater of Mr. Narang’s base salary immediately prior to the termination event and $250,000, and the target bonus input shall be an amount equal to the greater of his then current target bonus and $185,000.
Compensation Recovery Policy
In November 2023, the Board approved a Compensation Recovery Policy (the “Clawback Policy”), effective October 2, 2023. The Clawback Policy complies with the SEC’s clawback rules as required under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd Frank Act”), and provides that in the event we are required to prepare a “financial restatement” (as defined in the Clawback Policy), we shall, subject to certain limited exceptions as described in the Clawback Policy, recover incentive based compensation received by a current or former executive officer during the three-year period prior to the “restatement date” (as defined in the Clawback Policy) that exceeds the amount that otherwise would have been received had such compensation been determined based on the restated amounts in the financial restatement. Under the Clawback Policy, “incentive based compensation” includes any cash or equity compensation that is granted, earned, or vested based, in whole or in part, upon the attainment of a financial reporting measure.
Employee Benefits and Other Policies
401(k) Plan
We maintain a tax-qualified retirement plan that provides all regular U.S. employees with an opportunity to save for retirement on a tax-advantaged basis. Under our 401(k) plan, participants may elect to defer a portion of their compensation on a pre-tax basis and have it contributed to the plan subject to applicable annual limits under the Code. Pre-tax contributions are allocated to each participant’s individual account and are then invested in selected investment alternatives according to the participants’ directions. Employee elective deferrals are 100% vested at all times. As a U.S. tax-qualified retirement plan, contributions to the 401(k) plan and earnings on those contributions are not taxable to the employees until distributed from the 401(k) plan and all contributions are deductible by us when made. Under our 401(k) plan, we will match 50% of the participant’s voluntary contributions up to a maximum of 6% of eligible compensation.
Employee Stock Purchase Plan
Pursuant to our employee stock purchase plan, employees have an opportunity to purchase our Class A common stock at a discount on a tax-qualified basis through payroll deductions. The employee stock purchase plan is designed to qualify as an “employee stock purchase plan” under Section 423 of the Code. The purpose of the employee stock purchase plan is to encourage our employees to become our stockholders and better align their interests with those of our other stockholders.
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Health and Welfare Benefits
Our named executive officers are eligible to participate in our employee benefit plans on the same basis as our other employees, including our health and welfare plans.
Perquisites
Perquisites or other personal benefits are not a significant component of our executive compensation programs. Accordingly, we do not provide significant perquisites or other personal benefits to our executive officers, including our named executive officers.
Nonqualified Deferred Compensation
Our named executive officers did not participate in, or earn any benefits under, a nonqualified deferred compensation plan sponsored by us during the fiscal year ended December 31, 2025.
In November 2023, our Board approved the Deferred Compensation Program. Under this nonqualified deferral program which went into effect on January 1, 2024, non-employee directors may elect to defer receipt of their annual cash retainers, their Director Annual Grant, or both. More information about the Deferred Compensation Program is provided in the “Non-Employee Director Compensation” section of this proxy statement.
Equity Award Grant Policy and Practices
We adopted our Equity Award Grant Policy (as amended from time to time, the “Equity Award Grant Policy”) in December 2021. The Equity Award Grant Policy establishes the process we follow when granting equity-based awards to an officer, employee, or other service provider (other than a non-employee director) of the Company. All equity grants must be approved in advance by our Board or our compensation committee. Our Board or the compensation committee may delegate to a committee comprised of one or more officer(s) of the Company all or part of the authority with respect to the granting of equity awards to employees or eligible service providers who are not subject to the reporting and other provisions of Section 16 of the Exchange Act. Our compensation committee has delegated authority to our CEO to grant options and RSUs to certain employees that are not executive officers under specified guidelines.
We do not do not time the disclosure of material non-public information for purposes of affecting the value of executive compensation. In addition, during 2025, we did not grant stock options to any named executive officer during the four business days prior to or the one business day following the filing of a periodic report on Form 10-Q or Form 10-K, or the filing or furnishing of a Form 8-K that discloses material non-public information.
Non-Employee Director and Officer Stock Ownership Policy
We believe our non-employee directors and executive officers should have a meaningful and direct ownership stake in the Company that will align their interests with those of the Company’s stockholders and promote a long-term perspective in managing the Company. In support of this objective, in November 2022, our Board approved the Toast, Inc. Non-Employee Director and Officer Stock Ownership Policy (as amended from time to time, the “Policy”) which established stock ownership requirements for Toast non-employee directors and executive officers. In February 2026, we amended the Policy to align with current market practices and to strengthen alignment between executive interests and stockholder value, including by replacing fixed share number thresholds with salary-multiple requirements to ensure ownership requirements increase with responsibility and compensation levels. The compensation committee believes these enhanced requirements further reinforce executive accountability and long-term perspective. The Policy, as amended, provides a five-year ramp period to enable covered executive officers to build their ownership of Toast shares to meet policy requirements. Starting on December 31, 2027, executive officers other than our CEO, will be required to hold an amount of shares equivalent to three (3) times their annual base salary then in effect. For our CEO, the ownership requirement will be an amount of shares equivalent to six (6) times the annual base salary then in effect. There is a two-year
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grace period to meet the guidelines, should an executive officer fall out of compliance (i) solely as a result of a decline in the market price of Toast Class A common stock after having previously met the guidelines or (ii) if the guidelines are changed. Only shares directly owned by, or beneficially owned in a grantor trust or similar instrument for the benefit of the executive officer and/or direct family members and for which the executive officer has voting and disposal rights and vested DSUs, if any, held by the executive officer, will count towards share ownership under this policy. See “Non-Employee Director Compensation” above, for information about stock ownership requirements under this policy for our non-employee directors.
Material Tax Implications of the Program
Deductibility of Executive Compensation
Generally, Section 162(m) of the Code, or Section 162(m), disallows a federal income tax deduction for public corporations of remuneration in excess of $1 million paid in any fiscal year to certain specified former or current executive officers, subject to certain limited exceptions.
To maintain flexibility to compensate our executive officers in a manner designed to promote our short- and long-term corporate goals, our compensation committee has not adopted a policy that all compensation must be deductible. Our compensation committee believes that our stockholders’ interests are best served if its discretion and flexibility in awarding compensation is not restricted in order to allow such compensation to be consistent with the goals of our executive compensation programs, even though some compensation awards may result in non-deductible compensation expense. Consequently, our compensation committee does not limit executive compensation to that which is or may be deductible under Section 162(m).
Accounting for Stock-Based Compensation
We follow FASB ASC Topic 718 for our stock-based compensation awards. FASB ASC Topic 718 requires us to measure the compensation expense for all share-based payment awards made to our employees and non-employee members of our Board, including stock options to purchase shares of our common stock and other stock awards, based on the grant date “fair value” of these awards. This calculation is performed for accounting purposes and reported in the executive compensation tables required by the federal securities laws, even though the recipient of the awards may never realize any value from their awards.
Compensation Committee Report
Our compensation committee has reviewed and discussed the Compensation Discussion and Analysis with management and, based on such review and discussions, we recommended to the Board that the Compensation Discussion and Analysis be included in this Proxy Statement.
By the compensation committee of the Board:
Susan Chapman-Hughes (Chair)
Kent Bennett
Anu Bharadwaj
Mark Hawkins
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EXECUTIVE COMPENSATION TABLES
2025 Summary Compensation Table
The following table sets forth information regarding total compensation awarded to, earned by and paid to each of our named executive officers during the fiscal year ended December 31, 2025, 2024 and 2023 and their positions as of December 31, 2025.
| Name and Principal Position | Year | Salary ($) | Stock Awards ($) (1) | Option Awards ($) (1) | Non-Equity Incentive Plan Compensation ($) (2) | All Other Compensation ($) (3) | Total ($) | ||||||||||||||||
| Aman Narang (4) CEO, Co-Founder | 2025 | 475,342 | 4,594,460 | 4,999,970 | 612,241 | — | 10,682,013 | ||||||||||||||||
| 2024 | 400,000 | 4,968,380 | 5,400,004 | 505,920 | — | 11,274,304 | |||||||||||||||||
| 2023 | 20,000 | 1,755,321 | 2,999,235 | — | — | 4,774,556 | |||||||||||||||||
| Elena Gomez (5) CFO, President | 2025 | 464,696 | 2,526,954 | 2,749,977 | 448,897 | 10,500 | 6,201,024 | ||||||||||||||||
| 2024 | 450,341 | 2,491,080 | 2,707,489 | 413,413 | 10,350 | 6,072,673 | |||||||||||||||||
| 2023 | 432,808 | 1,755,321 | 2,999,235 | 239,082 | 19,000 | 5,445,446 | |||||||||||||||||
| Stephen Fredette (6) Co-Founder, President | 2025 | 343,973 | 2,067,505 | 2,249,992 | 236,928 | — | 4,898,398 | ||||||||||||||||
| 2024 | 20,000 | 2,228,878 | 2,422,502 | — | — | 4,671,380 | |||||||||||||||||
| 2023 | 20,000 | 1,579,785 | 2,699,480 | — | — | 4,299,266 | |||||||||||||||||
| Jonathan Vassil (7) Chief Revenue Officer | 2025 | 403,692 | 1,837,764 | 1,999,980 | 542,562 | 10,547 | 4,794,545 | ||||||||||||||||
| 2024 | 391,221 | 1,966,651 | 2,137,501 | 521,420 | 10,090 | 5,026,883 | |||||||||||||||||
| Brian Elworthy (8) General Counsel | 2025 | 403,692 | 1,378,314 | 1,499,995 | 318,755 | 12,224 | 3,612,980 | ||||||||||||||||
| 2024 | 391,221 | 1,573,311 | 1,709,992 | 306,467 | 9,881 | 3,990,872 | |||||||||||||||||
| 2023 | 376,029 | 965,420 | 1,650,327 | 139,277 | 11,281 | 3,142,334 | |||||||||||||||||
* Numbers may not tie due to rounding.
(1)The amounts reported represent the aggregate grant date fair value of stock options and RSUs granted to the named executive officers during 2025, 2024, and 2023, as applicable, calculated in accordance with FASB ASC Topic 718. Such grant date fair values do not take into account any estimated forfeitures. The assumptions used in calculating the grant date fair values of the awards reported in this column are set forth in Note 9 of our consolidated financial statements of our 2025 Form 10-K. For RSUs, the grant date fair value was calculated by multiplying the closing price of the underlying shares of Class A common stock on the date of grant by the number of RSUs granted. The amounts reported in this column reflect the accounting cost for the stock options and stock awards, as applicable, and do not correspond to the actual economic value that may be received upon exercise of the stock option, issuance of shares of Class A common stock, or any sale of any of the underlying shares of Class A common stock.
(2)The amounts reported reflect actual cash bonus payments awarded based on the achievement of company and individual performance to our named executive officers under our Incentive Plan, which were approved by our compensation committee or our Board (in the case of Mr. Narang). More details can be found in the "Short-term Incentive Bonus Plan" section of the "Compensation Discussion & Analysis."
(3)The amounts reported include Toast’s contributions to our 401(k) plan and any 401(k) plan match true-ups for the prior year which were posted in the applicable fiscal year.
(4)Mr. Narang’s 2025 base salary was $400,000 until April 1, 2025 when it was increased to $500,000.
(5)Ms. Gomez’s 2025 base salary was $454,425 until April 1, 2025, when it was increased to $468,058.
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(6)Mr. Fredette's 2025 base salary was $20,000 until April 1, 2025, when it was increased to $450,000.
(7)Mr. Vassil’s 2025 base salary was $394,769 until April 1, 2025, when it was increased to $406,612.
(8)Mr. Elworthy’s 2025 base salary was $394,769 until April 1, 2025, when it was increased to $406,612.
Grants of Plan-Based Awards in 2025
The following table sets forth the individual awards made to each of our named executive officers during 2025. For a description of the types of awards indicated below, please see our “Compensation Discussion and Analysis” section above.
| Name | Grant Date | Estimated Future Payouts Under Non-Equity Incentive Plan Awards (1) | All Other Stock Awards: Number of Shares of Stock or Units (#)(2) | All Other Option Awards: Number of Securities Underlying Options (#)(3) | Exercise or Base Price of Option Awards ($/Sh) | Grant Date Fair Value of Stock and Option Awards ($)(4) | ||||||||||||||||||||
| Threshold ($) | Target ($) | Maximum ($) | ||||||||||||||||||||||||
| Aman Narang | ||||||||||||||||||||||||||
| 2025 Bonus Opportunity | 273,322 | 475,342 | 710,636 | |||||||||||||||||||||||
| Time-based Options | 3/10/2025 | ` | — | 252,246 | 33.49 | 4,999,970 | ||||||||||||||||||||
| Time-based RSUs | 3/10/2025 | 137,189 | — | 4,594,460 | ||||||||||||||||||||||
| Elena Gomez | ||||||||||||||||||||||||||
| 2025 Bonus Opportunity | 200,400 | 348,522 | 521,040 | |||||||||||||||||||||||
| Time-based Options | 3/10/2025 | — | 138,735 | 33.49 | 2,749,977 | |||||||||||||||||||||
| Time-based RSUs | 3/10/2025 | — | 75,454 | — | 2,526,954 | |||||||||||||||||||||
| Stephen Fredette | ||||||||||||||||||||||||||
| 2025 Bonus Opportunity | 118,671 | 206,384 | 308,544 | |||||||||||||||||||||||
| Time-based Options | 3/10/2025 | — | 113,511 | 33.49 | 2,249,992 | |||||||||||||||||||||
| Time-based RSUs | 3/10/2025 | — | 61,735 | 2,067,505 | ||||||||||||||||||||||
| Jonathan Vassil | ||||||||||||||||||||||||||
| 2025 Bonus Opportunity | 232,123 | 403,692 | 603,520 | |||||||||||||||||||||||
| Time-based Options | 3/10/2025 | ` | — | 100,898 | 33.49 | 1,999,980 | ||||||||||||||||||||
| Time-based RSUs | 3/10/2025 | 54,875 | — | 1,837,764 | ||||||||||||||||||||||
| Brian Elworthy | ||||||||||||||||||||||||||
| 2025 Bonus Opportunity | 139,274 | 242,215 | 362,111 | |||||||||||||||||||||||
| Time-based Options | 3/10/2025 | — | 75,674 | 33.49 | 1,499,995 | |||||||||||||||||||||
| Time-based RSUs | 3/10/2025 | — | 41,156 | 1,378,314 | ||||||||||||||||||||||
(1)The amounts listed under the Threshold, Target, and Maximum columns of this table reflect the sum of the threshold, target, and maximum amounts for the H1 and H2 measurement periods. The amounts listed also reflect any pro-ration of bonus targets due to compensation changes during the measurement periods. More details can be found in the ”Short-Term Incentive Bonus Plan” section of the “Compensation Discussion & Analysis.” Total amounts of non-equity incentive plan awards each named executive officer earned in 2025 are reported in the “Non-Equity Incentive Plan Compensation” column of the “Summary Compensation Table.”
(2)Consists of RSUs granted under the 2021 Plan. Each RSU award vests over four years in 16 equal quarterly installments following April 1, 2025, generally subject to the named executive officer’s continued employment through each vesting date. All shares referenced are Class A common stock, unless otherwise noted.
(3)Consists of options to purchase shares of our common stock granted under the 2021 Plan. Each stock option vests over four years in 16 equal quarterly installments following April 1, 2025, generally, subject to the named executive officer’s continued employment through each vesting date. All shares referenced are Class A common stock, unless otherwise noted.
(4)The amounts reported represent the aggregate grant date fair value of the awards granted to the named executive officers calculated in accordance with FASB ASC Topic 718. Such grant date fair value does not take into account any estimated forfeitures. The assumptions used in calculating the grant date fair value of the awards reported in this column are set forth in Note 9 of our consolidated financial statements of our 2025 Form 10-K. The amounts reported in this column reflect the accounting cost for the stock options and stock awards, as applicable, and do not correspond to the actual economic value that may be received upon exercise of the stock option issuance of shares of Class A common stock, or any sale of any of the underlying shares of Class A common stock. For RSUs, the grant date fair value was calculated by multiplying the closing price of the underlying shares of Class A common stock on the date of grant by the number of RSUs granted.
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Outstanding Equity Awards at 2025 Year-End Table
The following table sets forth certain information with respect to outstanding equity awards held by each of our named executive officers as of December 31, 2025.
| Name | Grant Date | Vesting Commencement Date (2) | Option Awards (1) | Stock Awards (1) | ||||||||||||||||||||||
| Number of Securities Underlying Unexercised Options (#) Exercisable | Number of Securities Underlying Unexercised Options (#) Unexercisable | Option Exercise Price ($) | Option Expiration Date | Number of Shares or Units of Stock That Have Not Vested (#) | Market Value of Shares or Units of Stock That Have Not Vested ($)(3) | |||||||||||||||||||||
| Aman Narang | 2/8/2019 | 2/8/2019 | 1,425,000 (4,5) | — | 1.51 | 2/8/2029 | ||||||||||||||||||||
| 2/8/2019 | 7/1/2018 | 1,662,500 (4,5) | — | 1.51 | 2/8/2029 | |||||||||||||||||||||
| 3/22/2021 | 3/22/2021 | 75,000 (5,6) | — | 15.26 | 3/22/2031 | |||||||||||||||||||||
| 3/15/2022 | 2/1/2022 | 287,210 (7) | 19,148 (7) | 17.38 | 3/15/2032 | |||||||||||||||||||||
| 3/15/2022 | 2/1/2022 | 3,521 (8) | 125,031 | |||||||||||||||||||||||
| 3/10/2023 | 4/1/2023 | 190,200 (7) | 114,121 (7) | 17.33 | 3/10/2033 | |||||||||||||||||||||
| 3/10/2023 | 4/1/2023 | 37,983 (8) | 1,348,776 | |||||||||||||||||||||||
| 3/11/2024 | 4/1/2024 | 138,886 (7) | 231,477 (7) | 24.65 | 3/11/2034 | |||||||||||||||||||||
| 3/11/2024 | 4/1/2024 | 125,974 (8) | 4,473,337 | |||||||||||||||||||||||
| 3/10/2025 | 4/1/2025 | 31,530 (7) | 220,716 (7) | 33.49 | 3/10/2035 | |||||||||||||||||||||
| 3/10/2025 | 4/1/2025 | 120,041 (8) | 4,262,656 | |||||||||||||||||||||||
| Elena Gomez | 3/22/2021 | 3/8/2021 | 1,875,000 (6) | — | 15.26 | 3/22/2031 | ||||||||||||||||||||
| 3/15/2022 | 2/1/2022 | 319,123 (7) | 21,275 (7) | 17.38 | 3/15/2032 | |||||||||||||||||||||
| 3/15/2022 | 2/1/2022 | 3,913 (8) | 138,951 | |||||||||||||||||||||||
| 3/10/2023 | 4/1/2023 | 190,200 (7) | 114,121 (7) | 17.33 | 3/10/2033 | |||||||||||||||||||||
| 3/10/2023 | 4/1/2023 | 37,983 (8) | 1,348,776 | |||||||||||||||||||||||
| 3/11/2024 | 4/1/2024 | 69,635 (7) | 116,060 (7) | 24.65 | 3/11/2034 | |||||||||||||||||||||
| 3/11/2024 | 4/1/2024 | 63,162 (8) | 2,242,883 | |||||||||||||||||||||||
| 3/10/2025 | 4/1/2025 | 17,341 (7) | 121,394 (7) | 33.49 | 3/10/2035 | |||||||||||||||||||||
| 3/10/2025 | 4/1/2025 | — | 66,023 (8) | 2,344,477 | ||||||||||||||||||||||
| Stephen Fredette | 3/22/2021 | 3/22/2021 | 75,000 (5,6) | — | 15.26 | 3/22/2031 | ||||||||||||||||||||
| 3/15/2022 | 2/1/2022 | 287,210 (7) | 19,148 (7) | 17.38 | 3/15/2032 | |||||||||||||||||||||
| 3/15/2022 | 2/1/2022 | 3,521 (8) | 125,031 | |||||||||||||||||||||||
| 3/10/2023 | 4/1/2023 | 171,180 (7) | 102,709 (7) | 17.33 | 3/10/2033 | |||||||||||||||||||||
| 3/10/2023 | 4/1/2023 | 34,185 (8) | 1,213,909 | |||||||||||||||||||||||
| 3/11/2024 | 4/1/2024 | 62,305 (7) | 103,844 (7) | 24.65 | 3/11/2034 | |||||||||||||||||||||
| 3/11/2024 | 4/1/2024 | 56,514 (8) | 2,006,812 | |||||||||||||||||||||||
| 3/10/2025 | 4/1/2025 | 14,188 (7) | 99,323 (7) | 33.49 | 3/10/2035 | |||||||||||||||||||||
| 3/10/2025 | 4/1/2025 | 54,019 (8) | 1,918,215 | |||||||||||||||||||||||
| Jonathan Vassil | 4/21/2020 | 4/21/2020 | 453,751 (4) | — | 2.21 | 4/21/2030 | ||||||||||||||||||||
| 3/15/2022 | 2/1/2022 | 239,341 (7) | 15,957 (7) | 17.38 | 3/15/2032 | |||||||||||||||||||||
| 3/15/2022 | 2/1/2022 | 2,935 (8) | 104,222 | |||||||||||||||||||||||
| 3/10/2023 | 4/1/2023 | 142,650 (7) | 85,591 (7) | 17.33 | 3/10/2033 | |||||||||||||||||||||
| 3/10/2023 | 4/1/2023 | 28,488 (8) | 1,011,609 | |||||||||||||||||||||||
| 3/11/2024 | 4/1/2024 | 54,975 (7) | 91,627 (7) | 24.65 | 3/11/2034 | |||||||||||||||||||||
| 3/11/2024 | 4/1/2024 | 49,865 (8) | 1,770,706 | |||||||||||||||||||||||
| 3/10/2025 | 4/1/2025 | 12,612 (7) | 88,286 (7) | 33.49 | 3/10/2035 | |||||||||||||||||||||
| 3/10/2025 | 4/1/2025 | 48,016 (8) | 1,705,048 | |||||||||||||||||||||||
| Brian Elworthy | 4/21/2020 | 4/21/2020 | 179,755 (4) | — | 2.21 | 4/21/2030 | ||||||||||||||||||||
| 6/2/2021 | 6/2/2021 | 60,000 (6) | — | 20.94 | 6/2/2031 | |||||||||||||||||||||
| 3/15/2022 | 2/1/2022 | 175,517 (7) | 11,702 (7) | 17.38 | 3/15/2032 | |||||||||||||||||||||
| 3/15/2022 | 2/1/2022 | 2,152 (8) | 76,418 | |||||||||||||||||||||||
| 3/10/2023 | 4/1/2023 | 104,610 (7) | 62,766 (7) | 17.33 | 3/10/2033 | |||||||||||||||||||||
| 3/10/2023 | 4/1/2023 | 20,891 (8) | 741,839 | |||||||||||||||||||||||
| 3/11/2024 | 4/1/2024 | 43,980 (7) | 73,301 (7) | 24.65 | 3/11/2034 | |||||||||||||||||||||
| 3/11/2024 | 4/1/2024 | 39,892 (8) | 1,416,565 | |||||||||||||||||||||||
| 3/10/2025 | 4/1/2025 | 9,459 (7) | 66,215 (7) | 33.49 | 3/10/2035 | |||||||||||||||||||||
| 3/10/2025 | 4/1/2025 | 36,012 (8) | 1,278,786 | |||||||||||||||||||||||
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(1)Each of the option grants made prior to the IPO were granted under our 2014 Plan and are subject to early exercise, which permits the holder to exercise the option at any time following the grant date. If the holder early exercises the option grants, he or she will hold restricted shares that will vest in accordance with the original stock option vesting schedule. Each of the option grants made following the IPO were granted under our 2021 Plan and are not subject to early exercise. Each of the grants vests based on the holder’s continuous service relationship with us. Each of the grants will also be subject to certain acceleration of vesting provisions as set forth in our Severance Policy and/or CEO Severance Letter, as applicable. All shares referenced are Class A common stock, unless otherwise noted.
(2)The vesting commencement date for each award is fixed by the Compensation Committee upon grant.
(3)Each of the stock awards made prior to the IPO were granted under our 2014 Plan and each stock award made following the IPO were made under our 2021 Plan. Each of the stock awards vests based on the holder’s continuous service relationship with us. Each of the stock awards will also be subject to certain acceleration of vesting provisions as set forth in our Severance Policy and/or CEO Severance Letter, as applicable. Market value is calculated by multiplying the number of RSUs or RSAs that have not vested by the closing price of our Class A common stock on NYSE on December 31, 2025, which was $35.51. All shares referenced are Class A common stock, unless otherwise noted.
(4)This award was fully vested as of December 31, 2025.
(5)The shares referenced are Class B common stock.
(6)The shares subject to this option vest in 20 equal quarterly installments over five years.
(7)The shares subject to this option vest in sixteen equal quarterly installments over four years.
(8)The shares subject to this RSU award vest in sixteen equal quarterly installments over four years.
Option Exercises and Stock Vested in 2025
The following table sets forth the number of shares acquired and the value realized upon exercises of stock options and vesting of restricted stock and RSUs during the fiscal year ended December 31, 2025, by each of our named executive officers.
| Name | Option Awards | Stock Awards | ||||||||||||
| Number of Shares Acquired on Exercise (#) | Value Realized on Exercise ($)(1) | Number of Shares Acquired on Vesting (#) | Value Realized on Vesting ($)(2) | |||||||||||
| Aman Narang | — | — | 110,068 | 4,217,226 | ||||||||||
| Elena Gomez | — | — | 122,541 | 4,546,751 | ||||||||||
| Stephen Fredette | — | — | 70,320 | 2,696,143 | ||||||||||
| Jonathan Vassil | 200,000 | 7,959,182 | 57,532 | 2,215,107 | ||||||||||
| Brian Elworthy | 300,000 | 12,168,083 | 47,384 | 1,821,418 | ||||||||||
(1)The amount in this column is computed by determining the difference between the market price of our Class A common stock on the date of exercise and the exercise price of the exercised stock option, multiplied by the number of shares acquired upon exercise of the option. The value listed represents the aggregate value of all option awards that were exercised by such named executive officer in 2025. All shares referenced are Class A common stock.
(2)The amount in this column is computed by multiplying the number of shares of Class A common stock underlying the vested restricted stock or RSUs, as applicable, by the market price of our Class A common stock on the applicable vesting date. The value listed represents the aggregate value of all shares that vested for such named executive officer in 2025. All shares referenced are Class A common stock.
Pension Benefits
We do not maintain any defined benefit pension plans.
Nonqualified Deferred Compensation
We did not maintain any nonqualified deferred compensation plans for our named executive officers during 2025.
Potential Payments Upon Termination or Change in Control
The Severance Policy (or CEO Severance Letter, as applicable) provides for certain payments and benefits to each of our named executive officers if the named executive officer’s employment is terminated by us or our acquirer or successor without Cause (as defined in the Severance Policy), both
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during and outside of a Change in Control Period, or terminated by the named executive officer for Good Reason (as defined in the Severance Policy or CEO Severance Letter, as applicable) in the 12 month period following a Change in Control (as defined in the Severance Policy) (or during or outside of the Change of Control Period, for our CEO), subject to the named executive officer’s execution and non-revocation of a separation agreement, including a general release of claims. More details can be found in the “Severance and Change in Control Policy and CEO Severance Letter” section of the “Compensation Discussion & Analysis.” The table below quantifies the potential payments and benefits that would have become due to our named executive officers assuming that one of the triggering events above occurred as of December 31, 2025 (assuming that all outstanding equity awards were assumed, continued or substituted by an acquirer or successor in such change in control). Equity award amounts set forth in the table are based on the market price of a share of our Class A common stock on December 31, 2025, which was $35.51 per share.
| Termination Without Cause or for Good Reason Not in Connection with a Change in Control (1) | Termination Without Cause or for Good Reason in Connection with a Change in Control (2) | |||||||||||||||||||
| Name | Cash Severance ($) (3) | Health Care Benefits ($) (4) | Acceleration of Vesting Equity Awards ($) (5) | Cash Severance ($) (6) | Health Care Benefits ($) (7) | Acceleration of Vesting Equity Awards ($) (8) | ||||||||||||||
| Aman Narang | 975,342 | 20,533 | 6,970,588 | 1,938,355 | 30,800 | 15,667,297 | ||||||||||||||
| Elena Gomez | 816,580 | 19,918 | 6,846,670 | 1,573,392 | 29,878 | 11,939,587 | ||||||||||||||
| Stephen Fredette | 656,384 | 18,904 | 4,461,442 | 1,190,960 | 28,356 | 8,882,686 | ||||||||||||||
| Jonathan Vassil | 810,304 | 18,995 | 3,749,705 | 1,619,148 | 28,492 | 7,610,337 | ||||||||||||||
| Brian Elworthy | 648,827 | — | 2,919,891 | 1,215,456 | — | 5,884,074 | ||||||||||||||
(1)Pursuant to the Severance Policy and the CEO Severance Letter, only Mr. Narang was eligible to receive severance benefits in the event that his employment was terminated for Good Reason outside of a Change in Control Period. All named executive officers were eligible to receive severance benefits if their employment was terminated without Cause outside of a Change in Control Period. The Change in Control Period is the period commencing three months prior to and ending 12 months following a Change in Control.
(2)Pursuant to the Severance Policy and the CEO Severance Letter, Mr. Narang was eligible to receive severance benefits in the event that his employment was terminated without Cause or for Good Reason during a Change in Control Period. Pursuant to the Severance Policy, all other named executive officers were only eligible to receive severance benefits in the event that his or her employment was terminated without Cause during a Change in Control Period or in the event that his or her employment is terminated for Good Reason during the 12-month period following a Change in Control.
(3)Represents 12 months of salary continuation payments, plus a lump sum in cash equal to the executive’s prorated target annual bonus opportunity. Pursuant to the CEO Severance Letter, Mr. Narang’s base salary for purposes of such severance payment was calculated based on the greater of his base salary immediately prior to termination or $250,000 and his bonus was calculated based on the greater of his bonus immediately prior to termination or $185,000; his base salary and bonus as of December 31, 2025 were greater than such amounts. For Mr. Fredette, the base salary for purposes of such payment was based on the greater of his salary immediately prior to termination or $250,000 and his bonus was calculated based on the greater of his bonus immediately prior to termination or $150,000; his base salary and bonus as of December 31, 2025 were greater than such amounts.
(4)The amounts in this column represent 12 months of the employer portion of health benefit continuation based on the actual cost of the named executive officer’s premiums under our group health and welfare plans as of December 31, 2025.
(5)The amounts in this column represent 12 months of acceleration of equity awards outstanding as of December 31, 2025, calculated based on $35.51 per share, which was the closing price of our Class A common stock on December 31, 2025.
(6)Represents (i) a lump sum cash payment equal to 1.5 times the sum of 12 months of base salary plus the named executive officer’s target annual bonus opportunity, plus (ii) a lump sum in cash equal to the executive’s prorated target annual bonus opportunity. For information on how Mr. Narang’s and Mr. Fredette’s base salary and bonus is calculated for purposes of his severance payment, see note (3) above.
(7)The amounts in this column represent 18 months of the employer portion of health benefit continuation based on the actual cost of the named executive officer’s premiums under our group health and welfare plans as of December 31, 2025.
(8)The amounts in this column represent full acceleration of equity awards outstanding as of December 31, 2025, calculated based on $35.51 per share, which was the closing price of our Class A common stock on December 31, 2025.
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CEO PAY RATIO
As required by Section 953(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, or the Dodd-Frank Act, and Item 402(u) of Regulation S-K, we are providing the following information about the relationship of the total annual compensation of our employees and the total annual compensation of Aman Narang, our CEO during 2025. The pay ratio included in this information is a reasonable estimate calculated in a manner consistent with Item 402(u) of Regulation S-K. The pay ratio reported by other companies may not be comparable to the pay ratio reported below, as other companies have different employee populations and compensation practices and may use different methodologies, exclusions, estimates and assumptions in calculating their own pay ratios.
Pay Ratio Disclosure
For 2025, our last completed fiscal year:
•the total annual compensation of our median employee was $136,770, as determined in accordance with Item 402 of Regulation S-K; and
•the total annual compensation of our CEO, as determined in accordance with Item 402 of Regulation S-K and reported in the “2025 Summary Compensation Table” included elsewhere in this proxy statement was $10,682,013.
Based on this information, for 2025, the ratio of the total annual compensation of Mr. Narang, who served as our CEO during 2025, to the total annual compensation of our median employee was approximately 78 to 1.
Methodology
To identify the median employee, as well as to determine the total annual compensation of our median employee and our CEO, we took the following steps:
•We determined that, as of December 31, 2025, our employee population consisted of 6,519 individuals. Our employee population consisted of all full-time, part-time and temporary employees as of such date, excluding our CEO during 2025.
•To identify the “median employee” from our employee population, we used the following compensation measures to derive an annual compensation amount for each employee:
◦Annual base salary for each employee. For hourly employees, a reasonable estimate of hours worked for 2025 was used. For newly hired employees (excluding any seasonal or temporary workers), an annualized amount was used. For our non-U.S. employees, amounts were converted to U.S. dollars using the foreign exchange rates in effect in our human resources systems as of December 31, 2025, and did not include any cost of living adjustments.
◦Target bonus, which was calculated for bonus eligible employees based on a percentage of their base salary. For our non-U.S. employees, amounts were converted to U.S. dollars using the foreign exchange rates in effect in our human resources systems as of December 31, 2025.
◦Total grant date fair value of equity awards made to eligible employees in 2025, which were calculated in accordance with FASB ASC Topic 718.
•We calculated the annual compensation amount for each of our employees, based on the above components, as of December 31, 2025, based on the 12-month period from January 1, 2025 to December 31, 2025. Based on this approach, we identified a U.S.-based employee as the median employee. We then calculated this employee’s annual total compensation in accordance with the requirements of the Summary Compensation Table, and determined that the employee’s annual compensation for 2025 was $136,770.
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PAY VERSUS PERFORMANCE
As required by Section 953(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, and Item 402(v) of Regulation S-K, we are providing the following information about the relationship between executive compensation actually paid and certain financial performance metrics of the Company. For further information concerning the Company’s variable pay-for-performance compensation programs and how the Company aligns executive compensation with the Company’s performance, refer to “Executive Compensation – Compensation Discussion and Analysis.”
Pay Versus Performance Table
| Year | Summary Compensation Table Total for PEO (1) ($) | Compensation Actually Paid to PEO (2) ($) | Average Summary Compensation Table Total for Non-PEO NEOs (3) ($) | Average Compensation Actually Paid to Non-PEO NEOs (4) ($) | Value of Initial Fixed $100 Investment Based on: (5) | Net Income (Loss) (7) ($MM) | Adjusted EBITDA (8) ($MM) | |||||||||||||||||||
| Total Shareholder Return ($) | Peer Group Total Shareholder Return (6) ($) | |||||||||||||||||||||||||
| 2025 | ||||||||||||||||||||||||||
| 2024 | ||||||||||||||||||||||||||
| 2023 | ( | |||||||||||||||||||||||||
| 2022 | ( | ( | ( | ( | ||||||||||||||||||||||
| 2021 | ( | ( | ||||||||||||||||||||||||
(1)Mr. Comparato was our principal executive officer (the “PEO”) in fiscal years 2021 through 2023. Mr. Narang was our PEO in fiscal year 2024 and 2025. The amounts listed are the amounts of total compensation listed for our PEO for the corresponding year in the “Total” column of the Summary Compensation Table.
(2)The amounts listed in this column represent the amount of “compensation actually paid” to our PEO in accordance with Item 402(v) of Regulation S-K. These amounts do not reflect the amount of actual compensation earned by or paid to our PEO in the applicable year. We did not report a change in pension value for any of the years reflected in this table; therefore, a deduction from the Summary Compensation Table total related to pension value is not applicable. The following adjustments were made to our PEO’s Summary Compensation Table total compensation for each year to determine the compensation actually paid:
| Year | Summary Compensation Table Total for PEO ($) | Subtract Summary Compensation Table Equity Total (a) ($) | Add Year over Year Change in Fair Value of Outstanding and Unvested Equity Awards ($) | Add Year End Fair Value of Equity Awards Granted During Year that are Outstanding and Unvested ($) | Add Fair Value as of Vesting Date of Equity Awards Granted and Vested in the Year ($) | Add Year over Year Change as of Vesting Date (from Year End) in Fair Value of Equity Awards Granted in Prior Years that Vested in the Year ($) | Total Equity Award Adjustment ($) | Compensation Actually Paid to PEO ($) | ||||||||||||||||||
| 2025 | ( | |||||||||||||||||||||||||
| 2024 | ||||||||||||||||||||||||||
| 2023 | ||||||||||||||||||||||||||
| 2022 | ( | ( | ( | ( | ||||||||||||||||||||||
| 2021 | ||||||||||||||||||||||||||
a.The grant date fair value of equity awards as reported in the “Stock Awards” and “Option Awards” columns in the Summary Compensation Table for the applicable year. The value in this column is subtracted from the “Summary Compensation Table Total for PEO” column of this table.
(3)The amounts listed represent the average amounts of total compensation listed for our non-PEO named executive officers (the “Non-PEO NEOs”) for each corresponding year in the “Total” column of the Summary Compensation Table. The individuals comprising the Non-PEO NEOs for each fiscal year presented are listed below.
FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | ||||||||||
Elena Gomez | Elena Gomez | Elena Gomez | Elena Gomez | Elena Gomez | ||||||||||
Jennifer DiRico | Brian Elworthy | Brian Elworthy | Brian Elworthy | Brian Elworthy | ||||||||||
Brian Elworthy | Stephen Fredette | Stephen Fredette | Stephen Fredette | Stephen Fredette | ||||||||||
Stephen Fredette | Aman Narang | Aman Narang | Jonathan Vassil | Jonathan Vassil | ||||||||||
Aman Narang | Jonathan Grimm | |||||||||||||
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(4)The amounts listed in this column represent the average amount of “compensation actually paid” to our Non-PEO NEOs for each corresponding year in accordance with Item 402(v) of Regulation S-K. These amounts do not reflect the actual average amount of compensation earned by or paid to our Non-PEO NEOs in the applicable year. We did not report a change in pension value for any of the years reflected in this table; therefore, a deduction from the Summary Compensation Table total related to pension value is not applicable. The following adjustments were made to our Non-PEO NEOs average Summary Compensation Table total compensation for each year to determine the average compensation actually paid:
| Year | Average Summary Compensation Table Total for Non-PEO NEOs ($) | Subtract Average Summary Compensation Table Equity Total (a) ($) | Add Average Year over Year Change in Fair Value of Outstanding and Unvested Equity Awards ($) | Add Average Year End Fair Value of Equity Awards Granted During Year that are Outstanding and Unvested ($) | Add Average Fair Value as of Vesting Date of Equity Awards Granted and Vested in the Year ($) | Add Average Year over Year Change as of Vesting Date (from Year End) in Fair Value of Equity Awards Granted in Prior Years that Vested in the Year ($) | Total Average Equity Award Adjustment ($) | Average Compensation Actually Paid to Non-PEO NEOs ($) | ||||||||||||||||||
| 2025 | ( | |||||||||||||||||||||||||
| 2024 | ||||||||||||||||||||||||||
| 2023 | ||||||||||||||||||||||||||
| 2022 | ( | ( | ( | ( | ||||||||||||||||||||||
| 2021 | ||||||||||||||||||||||||||
a.The average grant date fair value of equity awards as reported in the “Stock Awards” and “Option Awards” columns in the Summary Compensation Table for the applicable year. The value in this column is subtracted from the “Average Summary Compensation Table Total for Non-PEO NEOs” column of this table.
(5)The disclosed values in these columns represent the measurement period value of an investment of $100 as of September 22, 2021, the date our Class A common stock began trading on the New York Stock Exchange, and then valued on the last trading day of each of 2021, 2022, 2023, 2024, and 2025, as applicable.
(6)The peer group used is the S&P 500 Information Technology Industry Index, consistent with the peer group used for the stock performance graph in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
(7)The dollar amounts listed represent the total net income (loss) reported in the Company’s audited financial statements for the applicable year.
(8)Our company-selected measure is Adjusted EBITDA. Adjusted EBITDA is a non-GAAP financial measure. Please refer to Appendix A for a description and reconciliation of this non-GAAP financial measure.
Financial Performance Measures
As described in greater detail in “Executive Compensation – Compensation Discussion and Analysis,” our executive compensation programs reflect a variable pay-for-performance philosophy. The metrics that the Company uses for our short-term incentive bonus plan are selected based on an objective of incentivizing our eligible named executive officers to increase the value of our enterprise for our shareholders. The most important financial performance measures we used to link executive compensation actually paid to our executive officers, for the most recently completed fiscal year, to the Company’s performance include:
Analysis of the Information Presented in the Pay versus Performance Table
In accordance with Item 402(v) of Regulation S-K, the Company is providing the following descriptions of the relationships between information presented in the Pay versus Performance table.
Compensation Actually Paid and Cumulative TSR
As demonstrated by the following graph, the amount of compensation actually paid to our PEO and the average amount of compensation actually paid to our Non-PEO NEOs as a group is generally aligned with our cumulative TSR over the five years presented in the table. The general alignment of compensation actually paid with our cumulative TSR over the period presented is because a significant portion of the compensation actually paid to our PEO and to the Non-PEO NEOs is comprised of equity
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awards, the value of which is tied directly to our stock price. The decline in compensation actually paid to our PEO from fiscal year 2024 to fiscal year 2025, despite the company’s continued strong operational performance, reflects the significant impact of stock price movements on equity award valuations. This outcome demonstrates the alignment of our compensation program with stockholder experience, as executive realized pay is directly tied to stock price performance. Please refer to “Executive Compensation - Compensation Discussion and Analysis,” for information about our executive compensation programs.
Compensation Actually Paid and Net Income (loss)
As demonstrated by the following graph, the amount of compensation actually paid to our PEO and the average amount of compensation actually paid to our Non-PEO NEOs is not aligned with our net income (loss) results over the five years presented in the table. Our net income (loss) performance improved over the five-year period reported in the table while the compensation actually paid to our PEO and the other named executive officers declined over the first two years and in the fifth year of the same period. The lack of alignment of compensation actually paid with our net income (loss) over the period presented is because a significant portion of the compensation actually paid to our PEO and to the Non-PEO NEOs is comprised of equity awards, the value of which is tied directly to our stock price, and net income (loss) is not used as a metric in the Company’s compensation arrangements. Please refer to “Executive Compensation - Compensation Discussion and Analysis,” for information about our executive compensation programs.
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Compensation Actually Paid and Adjusted EBITDA
As demonstrated by the following graph, the amount of compensation actually paid to our PEO and the average amount of compensation actually paid to our Non-PEO NEOs as a group is directionally aligned with our Adjusted EBITDA results over the five years presented in the table. Our 2022 short-term incentive bonus plan included Adjusted EBITDA %, which is derived from Adjusted EBITDA, as a bonus financial funding metric. Our 2023, 2024, and 2025 short-term incentive bonus plan also included Adjusted EBITDA as a bonus financial funding metric. Although the graph below shows alignment between compensation actually paid and our Adjusted EBITDA results over the period presented, the primary reason for the decline between 2021 and 2022, the decline between 2024 and 2025, and the increase between 2022 and 2024 in compensation actually paid to our PEO and to the Non-PEO NEOs is because a significant portion of the compensation actually paid to our PEO and to the Non-PEO NEOs is comprised of equity awards, the value of which is tied directly to our stock price. Please refer to “Executive Compensation - Compensation Discussion and Analysis,” for information about our executive compensation programs.
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Cumulative TSR of the Company and Cumulative TSR of the Peer Group
As demonstrated by the following graph, the Company’s cumulative TSR over the period presented in the table was (43%), while the cumulative TSR of the peer group presented for this purpose, the S&P 500 Information Technology Index, was 109% over the same period. Our stock price performance was below that of the S&P 500 Information Technology Index. Following our initial public offering in September 2021, we believe our stock price was subject to greater market volatility than the stock prices for technology companies in the S&P 500 Information Technology Index since companies in the index had been in operation and trading publicly for longer periods of time.
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EQUITY COMPENSATION PLAN INFORMATION
The following table summarizes our equity compensation plan information as of December 31, 2025. Information is included for equity compensation plans approved by our stockholders. We do not have any equity compensation plans not approved by our stockholders.
| Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights (#) (a) | Weighted-average exercise price of outstanding options, warrants and rights ($) (b) | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (#) (c) | ||||||||
Equity compensation plans approved by security holders (1) | 36,339,408 (2) | 12.08 (3) | 149,984,843 (4) | ||||||||
Equity compensation plans not approved by security holders | — | — | — | ||||||||
Total | 36,339,408 | 12.08 | 149,984,843 | ||||||||
(1)Includes the 2014 Plan, the 2021 Plan and the 2021 ESPP.
(2)Includes 35,436,773 shares subject to options and RSUs that were outstanding as of December 31, 2025 that were issued under the 2014 Plan and the 2021 Plan.
(3)RSUs, which do not have an exercise price, are excluded from the calculation of weighted-average exercise price.
(4)As of December 31, 2025, an aggregate of 149,984,843 shares of common stock were available for issuance under the 2021 Plan and 2021 ESPP. Our Board has determined not to make any further awards under the 2014 Plan following the closing of our IPO. The 2021 Plan provides that on the first day of each year beginning on January 1, 2022, the number of shares of Class A common stock available for issuance thereunder is automatically increased by a number equal to 5% of the outstanding shares of our Class A common stock and Class B common stock as of the last day of our immediately preceding fiscal year or such other lesser amount as our plan administrator may determine. On January 1, 2026, the number of shares of Class A common stock available for issuance under the 2021 Plan increased by 29,425,654 shares pursuant to this provision. Furthermore, the shares of Class A common stock underlying any awards under 2021 Plan and the shares of Class B common stock underlying any awards under the 2014 Plan that are forfeited, canceled, held back upon exercise of an option or settlement of an award to cover the exercise price or tax withholding, reacquired by the Company prior to vesting, satisfied without the issuance of stock or otherwise terminated (other than by exercise) shall be added back to the shares available for issuance under the 2021 Plan (provided, that any such shares of Class B common stock of the Company shall first be converted to shares of Class A common stock of the Company). The 2021 ESPP provides that on the first day of each year beginning on January 1, 2022, the number of shares of Class A common stock available for issuance thereunder is automatically increased by the lesser of (i) 11,638,189 shares of Class A common stock, (ii) a number equal to 1% of the outstanding shares of our Class A common stock and Class B common stock as of the last day of our immediately preceding fiscal year or (iii) such other lesser amount as our plan administrator may determine. On January 1, 2026, the number of shares of Class A common stock available for issuance under the 2021 ESPP increased by 5,885,130 shares pursuant to this provision. The 2026 increases are not reflected in the table above. This table above does not include purchase rights accruing under the 2021 ESPP as of December 31, 2025, since the purchase rights (and therefore the number shares to be purchased) were not determinable until the end of the purchase period (i.e., March 1, 2026).
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SECURITY OWNERSHIP OF
CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The following table sets forth certain information available to us with respect to the beneficial ownership of our capital stock as of March 31, 2026, except to the extent indicated otherwise in the footnotes, for:
1.each of our named executive officers for the fiscal year ended December 31, 2025;
2.each of our directors;
3.all of our current directors and executive officers as a group; and
4.each person known by us to be the beneficial owner of more than 5% of our Class A common stock or Class B common stock.
We have determined beneficial ownership in accordance with the rules of the SEC, and thus it represents sole or shared voting or investment power with respect to our securities. Unless otherwise indicated below, to our knowledge, the persons and entities named in the table have sole voting and sole investment power with respect to all shares that they beneficially owned, subject to community property laws where applicable. We have deemed shares of our capital stock subject to stock options that are currently exercisable or exercisable within 60 days of March 31, 2026 to be outstanding and to be beneficially owned by the person holding the stock option for the purpose of computing the percentage ownership of that person. We have deemed shares of our capital stock subject to RSUs for which the service condition has been satisfied or would be satisfied within 60 days of March 31, 2026 to be outstanding and to be beneficially owned by the person holding the RSUs for the purpose of computing the percentage ownership of that person. However, we did not deem these shares subject to stock options or RSUs outstanding for the purpose of computing the percentage ownership of any other person.
We have based our calculation of the percentage of beneficial ownership on 516,045,356 shares of our Class A common stock and 64,434,924 shares of our Class B common stock outstanding on March 31, 2026. Percentage of voting power represents voting power with respect to all shares of our Class A common stock and Class B common stock, as a single class. Each holder of our Class A common stock is entitled to one vote per share and each holder of our Class B common stock is entitled to ten votes per share on all matters submitted to a vote of the stockholders. The holders of our voting stock, consisting of Class A and Class B common stock, generally vote together as a single class on all matters submitted to a vote of our stockholders, unless otherwise required by Delaware law or our amended and restated certificate of incorporation. Each outstanding share of Class B common stock is convertible at any time at the option of the holder into one share of Class A common stock.
Unless otherwise indicated, the address of each beneficial owner listed in the table below is c/o Toast, Inc., 333 Summer Street, Boston, MA 02210.
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| Shares Beneficially Owned | ||||||||||||||||||||
| Class A | Class B (1) | % of Voting Power | ||||||||||||||||||
| Name | Shares | % | Shares | % | ||||||||||||||||
Executive Officers and Directors: | ||||||||||||||||||||
Aman Narang (2) | 1,451,066 | * | 21,775,340 | 32.2% | 18.4% | |||||||||||||||
Elena Gomez (3) | 2,753,161 | * | — | — | * | |||||||||||||||
Stephen Fredette (4) | 3,561,277 | * | 25,797,670 | 40.0% | 22.5% | |||||||||||||||
Jonathan Vassil (5) | 1,006,810 | * | — | — | * | |||||||||||||||
Brian Elworthy (6) | 916,738 | * | — | — | * | |||||||||||||||
| Paul Bell | 226,892 | * | — | — | * | |||||||||||||||
Kent Bennett | 534,167 | * | — | — | * | |||||||||||||||
Anu Bharadwaj | — | — | — | — | — | |||||||||||||||
Susan Chapman-Hughes (7) | 24,242 | * | — | — | * | |||||||||||||||
Mark Hawkins | 96,604 | * | — | — | * | |||||||||||||||
| Hilarie Koplow-McAdams | 42,891 | * | — | — | * | |||||||||||||||
Deval L. Patrick (7) | 21,305 | * | — | — | * | |||||||||||||||
All executive officers and directors as a group (12 persons) (8) | 10,635,153 | 2.0% | 47,573,010 | 70.3% | 40.6% | |||||||||||||||
| 5% Stockholders: | ||||||||||||||||||||
Technology Investment Dining Group, LLC (9) | 32,728,056 | 6.3% | — | — | 2.8% | |||||||||||||||
Capital International Investors (10) | 43,142,875 | 8.4% | — | — | 3.7% | |||||||||||||||
FMR LLC (11) | 30,595,784 | 5.9% | — | — | 2.6% | |||||||||||||||
BlackRock, Inc. (12) | 26,014,515 | 5.0% | — | — | 2.2% | |||||||||||||||
Jonathan Grimm (13) | 1,066,136 | * | 11,625,167 | 18.0% | 10.1% | |||||||||||||||
Chris Comparato (14) | 187,140 | * | 8,353,591 | 13.0% | 7.2% | |||||||||||||||
The Vanguard Group (15) | 36,677,371 | 7.1% | — | — | 3.2% | |||||||||||||||
* Represents less than one percent (1%).
(1)Shares of Class B common stock are convertible at any time by the holder into shares of Class A common stock on a share-for-share basis.
(2)Consists of (i) 39,973 shares of Class A common stock and 18,612,840 shares of Class B common stock held by Aman Narang, (ii) 300,000 shares of Class A common stock held by Starlight 2026 Charitable Remainder Trust, (iii) 200,000 shares of Class A common stock held by The Narang Family Trust, (iv) 100,750 shares of Class A common stock held by the Starlight 2026 Trust LLC, (v) 782,840 shares of Class A common stock and 3,162,500 shares of Class B common stock underlying outstanding stock options that are or will be immediately exercisable within 60 days of March 31, 2026, and (iv) 27,503 shares of Class A common stock issuable upon the settlement of RSUs releasable within 60 days of March 31, 2026.
(3)Consists of (i) 164,629 shares of Class A common stock held by Elena Gomez, (ii) 2,571,168 shares of Class A common stock underlying outstanding stock options that are or will be immediately exercisable within 60 days of March 31, 2026, and (iii) 17,364 shares of Class A common stock issuable upon the settlement of RSUs releasable within 60 days of March 31, 2026.
(4)Consists of (i) 913,067 shares of Class A common stock and 19,173,555 shares of Class B common stock held by Stephen Fredette, (ii) 224,853 shares of Class A common stock and 1,580,009 shares of Class B common stock held by the SHFA Family Trust, (iii) 1,718,029 shares of Class A common stock and 4,506,606 shares of Class B common stock held by the SHFA 2021 Nominee Trust, (iv) 66,896 shares of Class A common stock and 462,500 shares of Class B common stock held by the Fredette Family Nominee Trust, (v) 623,225 shares of Class A common stock and 75,000 shares of Class B common stock underlying outstanding stock options that are or will be immediately exercisable within 60 days of March 31, 2026, and (vi) 15,207 shares of Class A common stock issuable upon the settlement of RSUs releasable within 60 days of March 31, 2026.
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(5)Consists of (i) 139,893 shares of Class A common stock held by Jonathan Vassil, (ii) 853,754 shares of Class A common stock underlying outstanding stock options that are or will be immediately exercisable within 60 days of March 31, 2026, and (iii) 13,163 shares of Class A common stock issuable upon the settlement of RSUs releasable within 60 days of March 31, 2026.
(6)Consists of (i) 237,261 shares of Class A common stock held by Brian Elworthy, (ii) 39,368 shares of Class A common stock held by the Brian Elworthy Irrevocable Trust of 2019, (iii) 630,064 shares of Class A common stock underlying outstanding stock options that are or will be immediately exercisable within 60 days of March 31, 2026, and (iv) 10,045 shares of Class A common stock issuable upon the settlement of RSUs releasable within 60 days of March 31, 2026.
(7)Includes 9,712 shares of Class A common stock issuable pursuant to vested DSUs in accordance with our Deferred Compensation Program if the non-employee director departed the Board.
(8)Consists of (i) 5,071,396 shares of Class A common stock and 44,335,510 shares of Class B common stock held by our executive officers and directors, (ii) 5,461,051 shares of Class A common stock and 3,237,500 shares of Class B common stock underlying outstanding stock options that are or will be immediately exercisable within 60 days of March 31, 2026, (iii) 83,282 shares of Class A common stock issuable upon the settlement of RSUs releasable within 60 days of March 31, 2026, and (iv) 19,424 shares of Class A common stock issuable pursuant to vested DSUs in accordance with our Deferred Compensation Program as described above.
(9)Based solely on a Schedule 13G/A filed with the SEC on November 14, 2025. Steve Papa may be deemed to have the sole voting and dispositive power over the shares. The address of Technology Investment Dining Group, LLC is 36 College Hill, Hanover, New Hampshire 03755.
(10)Based solely on a Schedule 13G/A filed with the SEC by Capital International Investors on November 14, 2024, reporting sole voting power with respect to 43,108,038 shares and sole dispositive power with respect to 43,142,875 shares. In such Schedule 13G/A, Capital International Investors reports that it is a division of Capital Research and Management Company, as well as its investment management subsidiaries and affiliates Capital Bank and Trust Company, Capital International, Inc., Capital International Limited, Capital International Sarl, Capital International K.K., Capital Group Private Client Services, Inc., and Capital Group Investment Management Private Limited. Such Schedule 13G/A identifies Capital International Investors as the beneficial owner of greater than 5% of the outstanding shares of our common stock. The address for the Capital International Investors is 333 South Hope Street, 55th Floor, Los Angeles, CA 90071.
(11)Based solely on a Schedule 13G/A filed with the SEC on February 12, 2025 jointly by FMR LLC and Abigail P. Johnson (Ms. Johnson is a director, the chairman and chief executive officer of FMR LLC and may be deemed to have shared beneficial ownership of the shares held by FMR LLC). FMR LLC has sole power to vote or direct the vote of 30,530,018 shares, and sole power to dispose or direct the disposition of 30,595,784 shares. The principal address for FMR LLC is 245 Summer Street, Boston, Massachusetts 02210.
(12)Based solely on a Schedule 13G filed with the SEC on January 21, 2026 by BlackRock, Inc. This Schedule 13G reflects the securities beneficially owned, or deemed to be beneficially owned, by certain business units (collectively, the "Reporting Business Units") of BlackRock, Inc. and its subsidiaries and affiliates. Blackrock, Inc. has sole power to vote or direct the vote of 23,766,543 shares, and sole power to dispose or direct the disposition of 26,014,515 shares. The principal address for BlackRock, Inc. is 50 Hudson Yards New York, NY 10001.
(13)Class A holdings are based solely on a Schedule 13G/A filed with the SEC on October 25, 2024 and Class B holdings are based solely on Company record as retrieved from its transfer agent. Consists of (i) 60,264 shares of Class A common stock held by Jonathan Grimm, (ii) 73,352 shares of Class A common stock and 6,420,199 shares of Class B Common Stock held by trusts over which Mr. Grimm may be deemed to share voting and dispositive power and (iii) 932,520 shares of Class A common stock and 5,204,968 shares of Class B Common Stock held by a trust for which Mr. Grimm serves as co-trustee.
(14)Class A holdings are based solely on a Form 4 filed with the SEC on May 14, 2025 and Class B holdings are based solely on Company record as retrieved from its transfer agent. Consists of (i) 187,140 shares of Class A common stock and 1,951,390 shares of Class B common stock held by Christopher P. Comparato and (ii) 6,402,201 shares of Class B common stock held by trusts over which Mr. Comparato may be deemed to share voting and dispositive power.
(15)Based solely on a Schedule 13G/A filed with the SEC by The Vanguard Group, Inc. on February 13, 2024, reporting
shared voting power with respect to 210,059 shares, shared dispositive power with respect to 508,243 shares and sole
dispositive power with respect to 36,169,128 shares. The address for the Vanguard Group is 100 Vanguard Blvd, Malvern PA 19355. According to the most recent Schedule 13G/A filed by The Vanguard Group with the SEC on March 27, 2026, The Vanguard Group reported that it beneficially owns 0.0% as of March 13, 2026 following an internal reorganization pursuant to which The Vanguard Group’s beneficial ownership has been disaggregated. In the March 27, 2026 Schedule 13G/A, The Vanguard Group noted that certain subsidiaries or business divisions of subsidiaries of The Vanguard Group that formerly had, or were deemed to have, beneficial ownership with The Vanguard Group, will report beneficial ownership separately (on a disaggregated basis) from The Vanguard Group.
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CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
In addition to the compensation arrangements, including employment, termination of employment and our severance and change in control policy, discussed in the section titled “Compensation Discussion and Analysis,” specifically the compensation of our executives discussed in the section titled “Compensation Discussion and Analysis—Our Executive Compensation Programs,” the following is a description of each transaction since the beginning of our last fiscal year and each currently proposed transaction in which:
1.we have been or are to be a participant;
2.the amount involved exceeded or exceeds $120,000; and
3.any of our directors, executive officers, or holders of more than 5% of our capital stock, or any immediate family member of, or person sharing the household with, any of these individuals, had or will have a direct or indirect material interest.
Director and Executive Officer Compensation
See the sections titled “Executive Compensation” and “Non-Employee Director Compensation” for information regarding compensation of our directors and named executive officers.
Indemnification of Officers and Directors
We have entered into indemnification agreements with each of our current directors and officers. Our amended and restated certificate of incorporation and our Bylaws provide that we will indemnify our directors and officers to the fullest extent permitted by applicable law.
Policies and Procedures for Related Party Transactions
Our audit committee charter provides that our audit committee has the primary responsibility for reviewing and approving or disapproving “related party transactions,” which are transactions between us and related persons in which the aggregate amount involved exceeds or may be expected to exceed $120,000 and in which a related person has or will have a direct or indirect material interest. For purposes of this policy, a related person is defined as a director, executive officer, nominee for director, or greater than 5% beneficial owner of our common stock, in each case since the beginning of the most recently completed year, and any of their immediate family members.
Certain of the transactions described above were entered into prior to the adoption of this policy. Accordingly, such transactions were approved by disinterested members of our Board after making a determination that the transaction was executed on terms no less favorable than those that could have been obtained from an unrelated third party. Any related party transactions entered into after we adopted this policy were approved after making a determination that the transaction was executed on terms no less favorable than those that could have been obtained from an unrelated third party.
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OTHER MATTERS
Delinquent Section 16(a) Reports
Section 16(a) of the Exchange Act requires our directors and executive officers and persons who own more than 10% of our common stock, to file with the SEC initial reports of beneficial ownership and reports of changes in beneficial ownership. Officers, directors and greater than 10% stockholders are required by SEC regulations to furnish us with copies of all such reports.
To our knowledge, based solely on a review of the copies of such reports furnished to us and written representations that no other reports were required, we believe that for the fiscal year ended December 31, 2025, all required reports were filed on a timely basis under Section 16(a), except that, due to inadvertent administrative error, one report, covering one transaction, was filed late by Mr. Patrick.
Stockholders Sharing the Same Address
The rules promulgated by the SEC permit companies, brokers, banks or other intermediaries to deliver a single copy of proxy materials, or, where applicable, a Notice of Internet Availability of Proxy Materials, to households at which two or more stockholders reside. Each stockholder, however, still receives a separate proxy card if he or she receives paper copies. This practice, known as “householding,” is designed to reduce duplicate mailings and save significant printing and postage costs as well as natural resources. Stockholders sharing an address who have been previously notified by their broker, bank or other nominee and have consented to householding will receive only one copy of our proxy statement and annual report or Notice of Internet Availability of Proxy Materials. If you would like to opt out of this practice for future mailings and receive a separate proxy statement and annual report or Notice of Internet Availability of Proxy Materials for each stockholder sharing the same address, please contact your broker, bank or other nominee. You may also obtain a separate proxy statement or annual report or Notice of Internet Availability of Proxy Materials without charge by sending a written request to Toast, Inc., 333 Summer Street, Boston MA 02210 or by emailing a request to ir@toasttab.com. We will promptly send additional copies of the proxy statement or annual report or Notice of Internet Availability of Proxy Materials upon receipt of such request. Stockholders sharing an address that are receiving multiple copies of the proxy statement or annual report or Notice of Internet Availability of Proxy Materials can request delivery of a single copy of the proxy statement or annual report or Notice of Internet Availability of Proxy Materials by contacting their broker, bank or other nominee or sending a written request to Toast, Inc. at the address above or by emailing a request to ir@toasttab.com.
2025 Annual Report and SEC Filings
Our financial statements for the year ended December 31, 2025 are included in our 2025 Annual Report on Form 10-K (“Annual Report”), which we will make available to stockholders at the same time as this Proxy Statement. Our Annual Report and this Proxy Statement are posted on our website at investors.toasttab.com and are available from the SEC at its website at www.sec.gov. You may also obtain a copy of our Annual Report without charge by sending a written request to Investor Relations, Toast, Inc., 333 Summer Street, Boston, MA 02210.
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Our Board does not know of any other matters to be presented at the Annual Meeting. If any additional matters are properly presented at the Annual Meeting, the persons named in the enclosed proxy card will have discretion to vote the shares of our common stock they represent in accordance with their own judgment on such matters.
THE BOARD OF DIRECTORS
Boston, MA
April 23, 2026
Boston, MA
April 23, 2026
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APPENDIX A - NON-GAAP FINANCIAL MEASURES
In addition to financial information presented in accordance with U.S. generally accepted accounting principles (“GAAP”), this proxy statement includes certain non-GAAP financial measures described below. We use these non-GAAP financial measures to evaluate our ongoing operations, for internal planning and forecasting purposes, and to set targets for our compensation programs. These non-GAAP financial measures are presented for supplemental informational purposes only, should not be considered substitutes for, or superior to, the financial information prepared and presented in accordance with GAAP, and may be different from similarly-titled non-GAAP measures used by other companies. Please refer to pages 72-74 of Toast’s Annual Report on Form 10-K for the year ended December 31, 2025 for a description of why we believe the following non-GAAP measures are useful to investors.
Net Income (Loss) (GAAP) and Adjusted EBITDA (Non-GAAP)
Adjusted EBITDA is defined as net income (loss), adjusted to exclude stock-based compensation expense and related payroll tax expense, depreciation and amortization expense, interest income, net, income taxes and certain other items that are not considered to reflect our operating activities and performance within the ordinary course of business, such as restructuring and restructuring-related expenses, acquisition expenses, fair value adjustments on warrant liabilities, expenses related to early termination of leases (which includes associated asset impairments) and stock-based charitable contribution expense, as applicable. We have provided below a reconciliation of net income (loss), the most directly comparable GAAP financial measure, to Adjusted EBITDA. The following table reflects the reconciliation of net income to Adjusted EBITDA for each of the periods presented:
| Year Ended December 31, | |||||||||||
(in millions) | 2025 | 2024 | |||||||||
Net income | $ | 342 | $ | 19 | |||||||
| Stock-based compensation expense and related payroll tax | 255 | 256 | |||||||||
Depreciation and amortization | 67 | 46 | |||||||||
Interest income, net | (51) | (42) | |||||||||
| Gain on warrant extinguishment | — | (14) | |||||||||
Change in fair value of warrant liability | (3) | 49 | |||||||||
Termination of leases | 1 | 5 | |||||||||
| Stock-based charitable contribution expense | 6 | 5 | |||||||||
Restructuring and restructuring related expenses(1) | 12 | 46 | |||||||||
Income tax expense | 4 | 3 | |||||||||
| Adjusted EBITDA | $ | 633 | $ | 373 | |||||||
(1) Restructuring and restructuring-related expenses for the fiscal years ended December 31, 2025 and 2024 include $9 million and $32 million of severance benefits, $3 million and $12 million of stock-based compensation expense and $— million and $2 million of accelerated amortization related to facilities, respectively.
Subscription Services and Financial Technology Solutions Gross Profit (GAAP) and Non-GAAP Subscription Services and Financial Technology Solutions Gross Profit (Non-GAAP)
Non-GAAP Subscription Services and Financial Technology Solutions Gross Profit is defined as subscription services gross profit and financial technology solutions gross profit, adjusted to exclude stock-based compensation expense and related payroll tax expense, and depreciation and amortization expense. We have provided below a reconciliation of Subscription Services and Financial Technology Solutions Gross Profit, the most directly comparable GAAP financial measure, to Non-GAAP Subscription Services and Financial Technology Solutions Gross Profit.
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| Year Ended December 31, | |||||||||||||||||
(in millions) | 2025 | 2024 | 2023 | ||||||||||||||
Revenue: | |||||||||||||||||
| Subscription services | $ | 936 | $ | 706 | $ | 500 | |||||||||||
| Financial technology solutions | 5,037 | 4,053 | 3,189 | ||||||||||||||
| Costs of Revenue: | |||||||||||||||||
| Subscription services | 264 | 219 | 166 | ||||||||||||||
| Financial technology solutions | 3,891 | 3,175 | 2,503 | ||||||||||||||
Subscription services and financial technology solutions gross profit (GAAP) | $ | 1,818 | $ | 1,365 | $ | 1,020 | |||||||||||
| Year Ended December 31, | |||||||||||||||||
(in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Subscription services and financial technology solutions gross profit (GAAP) | $ | 1,818 | $ | 1,365 | $ | 1,020 | |||||||||||
| Stock-based compensation expense and related payroll tax | 16 | 20 | 20 | ||||||||||||||
Depreciation and amortization | 53 | 32 | 17 | ||||||||||||||
| Non-GAAP subscription services and financial technology solutions gross profit (Non-GAAP) | $ | 1,887 | $ | 1,417 | $ | 1,057 | |||||||||||
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