Pay vs Performance Disclosure - USD ($)
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Value of Initial Fixed $100 Investment Based On: | ||||||||
Year (1) | Summary Compensation Table Total for PEO ($)(2) | CAP to PEO ($)(2) | Average Summary Compensation Table Total for Non-PEO NEOs ($) | Average CAP to Non-PEO NEOs ($)(2) | Total Stockholder Return ($) | Peer Group Total Stockholder Return ($)(3) | Net Income (Loss) ($) (in millions) | Adjusted EBITDA ($)(4) (in millions) |
2025 | 8,163,348 | 14,113,264 | 4,159,731 | 6,852,767 | 25.54 | 86.52 | 40 | 132 |
2024 | 10,653,120 | 33,628,828 | 5,444,054 | 14,275,890 | 25.67 | 92.13 | 31 | 112 |
2023 | 8,687,806 | 9,709,825 | 3,720,868 | 4,355,570 | 3.71 | 61.20 | (147) | (43) |
2022 | 5,126,730 | (3,002,565) | 5,231,713 | 1,612,583 | 1.59 | 50.59 | (298) | (186) |
2021 | 5,784,695 | (25,185,719) | 9,760,351 | (5,961,079) | 19.73 | 82.94 | (521) | (446) |
columns above (or in prior years’ Summary Compensation Tables), adjusted as set forth in the table below, as determined by Item 402(v) of
Regulation S-K. Stock option grant date fair values are determined based on the Black-Scholes option pricing model as of the date of grant.
Adjustments have been made using stock option fair values based on the Black-Scholes option pricing model as of the measurement dates
as described in the table below. The Black-Scholes option pricing model uses a consistent set of valuation inputs (including Root’s stock
price, volatility, market risk-free rate, and the options’ strike price and term) which have been updated as of each measurement date, as
applicable. RSU and PSU grant date fair values are determined using the stock price on the date of grant. Adjustments have been made
using the stock price as of the measurement dates as described in the table below.
PEO | 2025 ($) | 2024 ($) | 2023 ($) | 2022 ($) | 2021 ($) |
Summary Compensation Table Total | 8,163,348 | 10,653,120 | 8,687,806 | 5,126,730 | 5,784,695 |
-SCT “Stock Awards” Column Value | (5,499,875) | (6,504,587) | (2,121,471) | (2,117,395) | (5,066,228) |
-SCT “Option Awards” Column Value | — | — | — | — | — |
3,744,306 | 6,471,326 | 2,471,966 | 276,530 | 1,539,689 | |
+/-change in fair value (from prior year end to covered year end) of equity awards granted in prior years that are outstanding and unvested as of the covered year end | 2,925,933 | 20,250,158 | 505,897 | (5,137,824) | (24,692,246) |
+vesting date fair value of equity awards granted and vested in the covered year end | — | — | — | — | — |
+/- change in fair value (from prior year end to vesting date) of equity awards granted in prior years that vested in the covered year | 4,779,552 | 2,758,811 | 165,627 | (1,150,606) | (2,751,629) |
-fair value as of prior year end of equity awards granted in prior years that failed to vest in the covered year | — | — | — | — | — |
+dividends or earnings paid on equity awards in the covered year | — | — | — | — | — |
Total Amount Added or Deducted from Summary Compensation Table Total | 5,949,916 | 22,975,708 | 1,022,019 | (8,129,295) | (30,970,414) |
Compensation Actually Paid | 14,113,264 | 33,628,828 | 9,709,825 | (3,002,565) | (25,185,719) |
Average of Non-PEO NEOs | 2025 ($) | 2024 ($) | 2023 ($) | 2022 ($) | 2021 ($) |
Summary Compensation Table Total | 4,159,731 | 5,444,054 | 3,720,868 | 5,231,713 | 9,760,351 |
-SCT “Stock Awards” Column Value | (2,908,311) | (3,514,939) | (1,103,360) | (2,630,288) | (8,996,668) |
-SCT “Option Awards” Column Value | — | — | — | — | — |
1,979,967 | 3,377,227 | 1,283,361 | 389,979 | 938,417 | |
+/-change in fair value (from prior year end to covered year end) of equity awards granted in prior years that are outstanding and unvested as of the covered year end | 1,812,879 | 7,626,620 | 247,426 | (389,707) | (1,181,515) |
+vesting date fair value of equity awards granted and vested in the covered year end | — | — | — | — | — |
+/- change in fair value (from prior year end to vesting date) of equity awards granted in prior years that vested in the covered year | 1,808,501 | 1,342,928 | 207,275 | (211,992) | (419,568) |
-fair value as of prior year end of equity awards granted in prior years that failed to vest in the covered year | — | — | — | (777,122) | (6,062,096) |
+dividends or earnings paid on equity awards in the covered year | — | — | — | — | — |
Total Amount Added or Deducted from Summary Compensation Table Total | 2,693,036 | 8,831,836 | 634,702 | (3,619,130) | (15,721,430) |
Compensation Actually Paid | 6,852,767 | 14,275,890 | 4,355,570 | 1,612,583 | (5,961,079) |
columns above (or in prior years’ Summary Compensation Tables), adjusted as set forth in the table below, as determined by Item 402(v) of
Regulation S-K. Stock option grant date fair values are determined based on the Black-Scholes option pricing model as of the date of grant.
Adjustments have been made using stock option fair values based on the Black-Scholes option pricing model as of the measurement dates
as described in the table below. The Black-Scholes option pricing model uses a consistent set of valuation inputs (including Root’s stock
price, volatility, market risk-free rate, and the options’ strike price and term) which have been updated as of each measurement date, as
applicable. RSU and PSU grant date fair values are determined using the stock price on the date of grant. Adjustments have been made
using the stock price as of the measurement dates as described in the table below.
PEO | 2025 ($) | 2024 ($) | 2023 ($) | 2022 ($) | 2021 ($) |
Summary Compensation Table Total | 8,163,348 | 10,653,120 | 8,687,806 | 5,126,730 | 5,784,695 |
-SCT “Stock Awards” Column Value | (5,499,875) | (6,504,587) | (2,121,471) | (2,117,395) | (5,066,228) |
-SCT “Option Awards” Column Value | — | — | — | — | — |
3,744,306 | 6,471,326 | 2,471,966 | 276,530 | 1,539,689 | |
+/-change in fair value (from prior year end to covered year end) of equity awards granted in prior years that are outstanding and unvested as of the covered year end | 2,925,933 | 20,250,158 | 505,897 | (5,137,824) | (24,692,246) |
+vesting date fair value of equity awards granted and vested in the covered year end | — | — | — | — | — |
+/- change in fair value (from prior year end to vesting date) of equity awards granted in prior years that vested in the covered year | 4,779,552 | 2,758,811 | 165,627 | (1,150,606) | (2,751,629) |
-fair value as of prior year end of equity awards granted in prior years that failed to vest in the covered year | — | — | — | — | — |
+dividends or earnings paid on equity awards in the covered year | — | — | — | — | — |
Total Amount Added or Deducted from Summary Compensation Table Total | 5,949,916 | 22,975,708 | 1,022,019 | (8,129,295) | (30,970,414) |
Compensation Actually Paid | 14,113,264 | 33,628,828 | 9,709,825 | (3,002,565) | (25,185,719) |
Average of Non-PEO NEOs | 2025 ($) | 2024 ($) | 2023 ($) | 2022 ($) | 2021 ($) |
Summary Compensation Table Total | 4,159,731 | 5,444,054 | 3,720,868 | 5,231,713 | 9,760,351 |
-SCT “Stock Awards” Column Value | (2,908,311) | (3,514,939) | (1,103,360) | (2,630,288) | (8,996,668) |
-SCT “Option Awards” Column Value | — | — | — | — | — |
1,979,967 | 3,377,227 | 1,283,361 | 389,979 | 938,417 | |
+/-change in fair value (from prior year end to covered year end) of equity awards granted in prior years that are outstanding and unvested as of the covered year end | 1,812,879 | 7,626,620 | 247,426 | (389,707) | (1,181,515) |
+vesting date fair value of equity awards granted and vested in the covered year end | — | — | — | — | — |
+/- change in fair value (from prior year end to vesting date) of equity awards granted in prior years that vested in the covered year | 1,808,501 | 1,342,928 | 207,275 | (211,992) | (419,568) |
-fair value as of prior year end of equity awards granted in prior years that failed to vest in the covered year | — | — | — | (777,122) | (6,062,096) |
+dividends or earnings paid on equity awards in the covered year | — | — | — | — | — |
Total Amount Added or Deducted from Summary Compensation Table Total | 2,693,036 | 8,831,836 | 634,702 | (3,619,130) | (15,721,430) |
Compensation Actually Paid | 6,852,767 | 14,275,890 | 4,355,570 | 1,612,583 | (5,961,079) |
December 31, 2020. Both cumulative TSR and the noted compensation reflect the full period between December 31,
2020 and December 31, 2025. The chart below demonstrates the relationship between Root’s TSR and
Compensation Actually Paid to Mr. Timm and our Non-PEO NEOs.
income or loss over the period January 1, 2021 through December 31, 2025 as demonstrated in the chart below.
Adjusted EBITDA over the period January 1, 2021 through December 31, 2025 as demonstrated in the chart below.
important measures we used to link compensation actually paid to our named executive officers for fiscal year 2025
to our performance:
Tabular List | |
Adjusted EBITDA | We use Adjusted EBITDA as an internal performance measure in the management of our operations because we believe it provides management and other users of our financial information useful insight into our results of operations and underlying business performance. |
Gross Accident Period Loss Ratio | We view gross accident period loss ratio as the best measure of the impact of pricing and underwriting actions. |
Policies In Force Growth | We view policies in force as an important metric to assess our financial performance because policy growth drives our revenue growth, expands brand awareness, deepens our market penetration, and generates additional data to continue to improve the functioning of our platform. |
Year | PEO | Non-PEO NEOs |
2025 | Alexander Timm | Megan Binkley, Mahtiyar Bonakdarpour, and Jonathan Allison |
2024 | Alexander Timm | Megan Binkley, Mahtiyar Bonakdarpour, and Jonathan Allison |
2023 | Alexander Timm | Mahtiyar Bonakdarpour and Jonathan Allison |
2022 | Alexander Timm | Robert Bateman, Mahtiyar Bonakdarpour, Daniel Rosenthal, and Hemal Shah |
2021 | Alexander Timm | Daniel Rosenthal, Hemal Shah, Anirban Kundu, and Daniel Manges |