Company: DRH-PA
Filing Date: 2025-03-17
Form Type: DEF 14A
Source: 0001298946-25-000038
Chunk: 54

Company: DiamondRock Hospitality Co
Filing Date: 2025-03-17
Form: DEF 14A
Chunk 54
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, we target providing approximately half of each executive’s target compensation opportunity in the form of long-term equity incentives. However, our Compensation Committee determines, in its sole discretion, the actual amount of equity to be awarded to our executive officers each year reflecting our performance in the prior year, individual performance and competitive levels of long-term incentive compensation among our competitive set. On this basis, our Compensation Committee determined that Mr. Donnelly’s long-term equity incentive award should be approximately 60% of his total compensation in order to further align his compensation with the total stockholder return of the Company.

We grant equity awards to align the interests of our executives with those of our stockholders, and to create incentives for our executives to protect and grow stockholder value, including through maintenance and growth of our dividend. Our executive officers are not guaranteed any minimum number of shares of restricted stock or other equity grants. We have not granted stock options in over a decade and we currently have no plans to grant stock options, stock appreciation rights or similar option-like instruments. We generally grant equity awards annually in February.

#### Types of Awards
We grant an annual award to each executive officer. In 2024, 50% of the awards consisted of time-based vesting awards of RSUs or LTIP units and 50% of which consisted of performance stock units, or PSUs, which are earned based on the achievement of specified performance criteria. Each of these types of awards is described in more detail below.

#### Restricted Stock
For 2024, 50% of the target annual long-term incentive for each executive officer was granted in restricted stock to align the interests of these executive officers with those of our stockholders and to help retain the services of these executives through multi-year vesting schedules. Our restricted stock awards generally vest in three equal annual installments from the date of grant. All dividends on unvested shares accrue and are paid out only when the underlying restricted shares vest.

#### Long-Term Incentive Plan ("LTIP") Units
Our Compensation Committee provides each executive officer with the opportunity to elect to receive LTIP units in lieu of restricted stock. LTIP units are designed to qualify as “profits interests” in DiamondRock Hospitality Limited Partnership ("DRHLP"), the Company's operating partnership, for federal income tax purposes, meaning that initially they are not economically equivalent in value to a share of our common stock, but over time can increase in value to one-for-one parity with common stock by operation of special tax rules applicable to profits interests. LT