November 4, 2019
A Window Into One Board’s Executive Comp Overhaul
The 2017 proxy shows that Regis’s compensation plan previously consisted of a base salary paid in cash, an annual cash bonus tied to cash flow per share that made up 70% of bonus pay with the remaining 30% tied to same-store sales. The LTI plan, which had a three-year performance period, consisted of 60% performance stock units (PSUs) based on adjusted earnings per share, and 40% restricted stock units whose values were driven by stock price. That plan was the revised version that had been adopted after the 2015 say-on-pay vote saw one third of investors give Regis a thumbs-down on compensation. In July 2017, the board hired Pay Governance as its new compensation consultant, and thus began its extensive review.