F45 To Pay New CEO Tom Dowd $1 Million, Mark Wahlberg $1
Total compensation for F45 CEO Tom Dowd could reach as high as $2.5 million per year; Mark Wahlberg will earn far less, at least in his role as chief brand ambassador
Functional fitness franchisor F45 Training will pay its new CEO Tom Dowd $1 million a year while actor Mark Wahlberg will limit himself to a salary of only $1 as chief brand ambassador.
F45 disclosed the salaries of its new executives in a filing it recently submitted to the Securities and Exchange Commission.
Dowd will also be eligible for a $750,000 annual bonus as well as $750,000 in annual “equity-based incentive awards,” according to the filing.
F45 named Dowd as its new CEO and Walhberg as its chief brand ambassador on March 30.
Dowd joined the fitness franchisor after 25 years of executive leadership experience at GNC Holdings and after having co-founded Performance Inspired, an active lifestyle nutrition company.
The health and wellness veteran was one of the early investors in F45, and said he believes he can get the company back to its glory days, which included going public to a $1.4 billion valuation in 2021 when its workout routines were taking the world by storm.
“The company is differentiated by its strong brand, dynamic and innovative programming and a robust franchisee network – all of which I am confident will remain the cornerstones of our future success,” Dowd said of his decision to take the job.
Wahlberg had been involved with F45 for several years as an investor, brand ambassador and board member. The actor-producer-entrepreneur could often be seen promoting the brand on social media by touting its workouts.
“I am confident in our ability to enhance what I believe is already the world’s best workout for studio operators and our more than 300,000 committed members across the globe,” Wahlberg said last month.
F45’s SEC filing doesn’t make any mention of bonuses Wahlberg would be entitled to receive as chief brand ambassador, but it does say he and the company are still bound by the terms of a promotional agreement they entered into in March 2019.
The appointments of Dowd and Wahlberg are part of F45’s plan to bounce back from a rocky 2022, which saw the once high-flying fitness franchisor’s stock drop precipitously amid layoffs, lowered revenue targets and the departure of then-CEO Adam Gilchrist.
The company is also facing a lawsuit from former athletes David Beckham and Greg Norman, who alleged that F45 failed to pay them on time for marketing campaigns.
In recent months, F45 has been hard at work trying to rebuild itself.
In February, the fitness franchisor announced the closing of a new $90 million subordinated debt facility provided by a group of existing investors led by affiliates of Kennedy Lewis Management LP. The financing transaction was meant to improve F45’s balance sheet and enhance liquidity for long-term growth, the company said.
F45 also recently refreshed its board, naming Gene Davis as chairman and appointing four new independent directors. The company also named Bob Madore as its interim chief Financial officer.