Former Just Salad CFO Stefan Boyd is suing the company for $1.2 million after allegedly not being properly compensated for helping raise the company’s valuation.
Court documents state he was hired in 2019 to overhaul the fast casual’s infrastructure, build systems for expansion, and prepare the company for a capital raise.
According to court documents, in return, Boyd accepted a below-market salary and deferred compensation in exchange for participation in the company’s Equity Appreciation Unit (EAU) Plan, which promised payouts tied to increases in company valuation. In 2023, Boyd left the company under a separation agreement crafted with Just Salad CEO Nick Kenner. The agreement allegedly included a bonus provision that would award Boyd a lump-sum payment if Just Salad executed a capital raise valued at $250 million or more before December 31, 2024.
Last year, Just Salad raised $200 million at a nearly $1 billion valuation. But instead of rewarding Boyd, the company allegedly told him he wasn’t entitled to any funds. Under the separation agreement, Boyd claims he could only get a payout if the company sold at least 30 percent equity. Because the company’s high valuation allowed it to raise the funds by selling only 20 percent, Just Salad claimed the condition was not met.
“To not reward Boyd under these circumstances would be absurd. Were Just Salad to deprive him of a payment due to a purported technical reading of the Separation Agreement, the Company would effectively be saying that the value he created was too great; he did his job too well; the foundation he built was too strong; the Company grew too much and raised too much money,” the court filings state.
In conversations cited in the lawsuit, Kenner allegedly admitted the decision was unfair, even acknowledging that Boyd would have received over $5 million had he remained in the EAU Plan. Instead, Kenner allegedly told Boyd he was “screwed” and should take pride in what he accomplished. “You should wear it on your sleeve professionally for the rest of your life,” Kenner said, according to the complaint.
Boyd alleges that other employees, including Kenner himself, were still paid based on the capital raise—even after the EAU Plan was terminated weeks before the deal closed. Boyd claims this demonstrates that the company was honoring the spirit of the plan for some, while using a technicality to shut him out.
“The law does not allow Just Salad to avoid its promise to Boyd based on a technicality,” the complaint reads. “This Court must reject Just Salad’s inequitable, unfair, and disingenuous tactic and award Boyd the compensation he undisputedly deserves.”
In response, Just Salad said the terms of Boyd’s separation agreement were not met and did not stipulate payment. It also noted that the document was crafted, negotiated, and then signed by Boyd.
“This ‘case’ represents nothing more than a headline-grabbing litigation strategy being employed by a former CFO, who left the Company more than 24 months ago,” a Just Salad spokesperson said in a statement. “This complaint makes wild allegations that are not supported by the facts surrounding his departure from the Company and the verbal conversations at issue are completely false and inflammatory. We look forward to seeing the truth prevail as we present our facts in the court of law.”
Just Salad operates nearly 100 locations across urban and residential markets in New York, Florida, Illinois, Massachusetts, New Jersey, Connecticut, and Pennsylvania. The brand debuted in 2006 in New York City to fulfill demand for healthier, convenient products.
The funds raised will be used for investment in menu innovation, advanced technology, and the customer experience.
