Company: WCN
Filing Date: 2025-04-04
Form Type: DEF 14A
Source: 0001104659-25-032201
Chunk: 40

Company: Waste Connections, Inc.
Filing Date: 2025-04-04
Form: DEF 14A
Chunk 40
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 value to the total dividends that would have been paid on the number of Common Shares that vest. PSUs do not carry voting rights or any other rights of a shareholder. Payout for the 3-Year Performance Period Ended December 31, 2024 In February 2025, the Compensation Committee certified the results of the 2022-2024 PSUs granted under our 2016 Plan (the “2022 PSUs”). The 2022 PSUs were subject to a 3-year performance period that ended December 31, 2024, and the number of Common Shares that could have become earned and vested ranged from 0% to a maximum of 200% of the number of performance units granted in 2022, subject to a potential TSR modifier. Performance measures for the 2022 PSUs included: (i) growth of adjusted free cash flow per share, (ii) absolute improvement in ROIC, and (iii) progress towards achieving each of the eight long-term ESG and sustainability targets over the three-year period, Each goal was judged on a 0% to 200% performance scale, with each financial metric calculated annually and weighted at 42.5%, and the ESG metric weighted at 15% when calculating overall Company performance for purposes of determining the number of earned Common Shares. Adjusted free cash flow per share was calculated for each year using adjusted free cash flow divided by the number of shares outstanding, with the calculation of adjusted free cash flow consistent with the Company’s approach to reporting non-GAAP measures in its earnings releases and filings with the SEC and applicable securities commissions or similar regulatory authorities in Canada. The ROIC improvement measure set a target increase in ROIC for the Company to achieve over the 3-year performance period, which was pro-rated for determining targeted annual achievement. ROIC for each year was then calculated using after tax net operating profit before amortization of intangibles, divided by average invested capital (generally determined by taking the average of invested capital at the end of the year and invested capital at the end of the prior year). The Compensation Committee determined that adjusted free cash flow per share compound annual growth rate over the 3-year performance period ended December 31, 2024, was approximately 6.9%, as compared to an annual target of 6.0%. Although FCFPS growth exceeded the target as measured over the three-year period, applying annual calculations, as provided in the plan design, resulted in an achievement percentage of 92.5%,