Our strong commitment topay-for-performance is demonstrated by the link between actual performance and incentive payouts, both short- and long-term. The Committee sets short- and long-term performance goals at challenging levels to incentivize outstanding achievement by our executive officers.
| ◆ | Variable pay makes up 89% of the CEO’s compensation, with 61% at-risk and 28% time vested |
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| ◆ | Variable pay for the other NEOs averages 75% with 55% at-risk and 20% time vested |
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The STIP aligns short-term cash incentives with the level of individual performance and contributions to the Company’s overall performance. For NEOs at the corporate level (all NEOs other than Ms. Singleton and Mr. Edelman), 100% of the STIP award opportunity is based on the achievement of corporate-wide performance goals.
For Fiscal 2024, the STIP performance metrics included:
| ◆ | 50% Adjusted Operating Income; |
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| SIGNET JEWELERS | 47 | 2024 PROXY STATEMENT |
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For Ms. Singleton and Mr. Edelman, who have banner leadership roles, the STIP award opportunity was split evenly between corporate-wide performance goals and banner performance goals.
| Fiscal 2024 Annual Incentive (STIP) |
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| Name | Corporate | Banners | Payout % Range |
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| Virginia C. Drosos | 100% | 0% | 0%–200% |
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| Joan M. Hilson | 100% | 0% | 0%–200% |
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| Jamie L. Singleton | 50% | 50% | 0%–200% |
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| Rebecca Wooters | 100% | 0% | 0%–200% |
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| Oded Edelman | 50% | 50% | 0%–200% |
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The LTIP aligns interests of senior management with shareholders and long-term performance.
| ◆ | PSUs granted under the LTIP align long-term incentives with corporate-wide performance over a two or three-year period for all participants. |
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| ◆ | Payout of PSUs under the LTIP is based on the achievement of performance metrics established at the grant date measured over a two- or three-fiscal year performance measurement cycle (and full vesting requires three-years of service following the performance measurement cycle beginning date or the grant date). |
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| ◆ | The Fiscal 2024 PSU grant utilized metrics of 50% Free Cash Flow and 50% Revenue, each measured over three years (Fiscal 2024 through Fiscal 2026) for vesting of these awards. The Fiscal 2023 through Fiscal 2025 grant had a two-year performance period and required an additional year of service for vesting. |
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| ◆ | PSU payouts typically range from 0% to 200% of target, based on the level of performance achievement during the applicable performance period, with a payout of 25% (for Fiscal 2023 and earlier grants) to 50% (for grants made in Fiscal 2024) of target at threshold performance and a payout of 200% of target at maximum performance. |
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More information with respect to the selection of these performance metrics, actual performance and resulting payouts under the STIP and LTIP, along with other elements of our executive compensation program, is provided below.
