Peloton Director Abruptly Quits Same Day Company Audit Is Approved
Director is a member of the audit committee and gave the fitness company four days notice.
October 26, 2021
On the same day Peloton (PTON), a connected fitness brand, filed its latest Proxy Statement, the company also disclosed Howard Draft, a Director and Audit Committee member resigned. Just before exiting, Draft and the two other Audit Committee members provided their stamp of approval on Peloton’s financials statements:

“...our audit committee recommended to our board of directors that the audited consolidated financial statements be included in our annual report on Form 10-K for the fiscal year ended June 30, 2021 for filing with the U.S. Securities and Exchange Commission.”

For FY 2021 which ended June 30th, Peloton awarded Draft options worth $308,152. Draft has been a Peloton Director since April 2015. Peloton says Draft notified the company of his intent to resign just four days prior to doing so but suggests nothing is awry:

“Mr. Draft’s resignation is not the result of any disagreement with the Company on any matter relating to its operations, policies or practices.”

Draft also served on the board of Emisphere Technologies, whose controlling stockholder is being sued in connection with its role in the company’s sale to Norvo Nordisk. Draft was appointed by the controlling stockholder and is being sued for his role in approving the deal which awarded millions of dollars in equity to two of the controlling stockholder’s appointees just before the deal closed.

Notably, Draft is the only named Emisphere Director or Executive Officer without unvested equity prior to the transaction’s close.
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