Company: DRH-PA
Filing Date: 2025-03-17
Form Type: DEF 14A
Source: 0001298946-25-000038
Chunk: 43

Company: DiamondRock Hospitality Co
Filing Date: 2025-03-17
Form: DEF 14A
Chunk 43
---
 for our Chief Executive Officer and the average of our other named executive officers (“NEOs”) in 2024.

Reflects Mr. Donnelly's annualized target pay as CEO and the average annualized target pay for Mr. Leonard, Ms. Quinn and Ms. Fischer.

#### Pay and Performance Alignment
As the pie graphs above illustrate, the majority of our CEO’s ongoing pay opportunity and approximately half of our other named executive officers’ pay opportunities are performance-based and in the form of long-term equity awards, which are aligned with stockholder interests. As a result, actual pay delivery for the CEO and other named executive officers continues to be closely correlated with performance on both an absolute and relative basis.

Our Compensation Committee believes that our long-term incentive program, particularly the PSU component, strongly aligns earned compensation with total stockholder return. As required under SEC rules, the values shown in the Summary Compensation Table and Grants of Plan-Based Awards table in this and prior proxy statements with respect to the PSUs are based on grant-date fair value not earned value.

#### 2025 Compensation Highlights
For 2025, the Compensation Committee decided that it was in the best interests of the Company and the stockholders to adjust the target pay mix by increasing the percentage of pay that is performance-based for all NEOs in order to better align with industry best practices. In 2025, all of the NEOs pay opportunities will be majority performance-based as the Compensation Committee determined that the long-term equity incentive awards will be subject to 40% time-based vesting and 60% performance and time-based vesting, adjusted from the 50% time-based RSUs and 50% PSUs for 2024.

In addition to increasing the percentage of compensation that is performance-based, to further the goal of aligning executive compensation with stockholder interests, the Compensation Committee decided that the performance metric for the 2025 awards would be 100% based on relative TSR over a three-year performance period.

#### DiamondRock Hospitality392025 Proxy Statement
| Compensation Discussion and Analysis |

#### Compensation Best Practices
Our executive compensation program incorporates the following best practices:

• Our executives’ total compensation opportunity is primarily based on performance, awarded through our annual and long-term incentive compensation programs.

• No guarantees of minimum cash incentive payments are provided for executives after the year of hire.

• The 2024 target pay opportunity for our Chief Executive Officer is approximately 60% and, on average, for our other named executive officers is approximately 50% in the form of long