Company: CHD
Filing Date: 2025-03-20
Form Type: DEF 14A
Source: 0001193125-25-059273
Chunk: 66

Company: CHURCH & DWIGHT CO INC /DE/
Filing Date: 2025-03-20
Form: DEF 14A
Chunk 66
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 COMPENSATION DISCUSSION AND ANALYSIS |

ANNUAL INCENTIVE PLAN Our Annual Incentive Plan utilizes five equally weighted metrics, namely: Net Sales, Relative Gross Margin, Adjusted Diluted EPS, Cash from Operations and Strategic Initiatives. The table below summarizes the reasons the Committee utilizes these metrics for our Annual Incentive Plan. The principal objective of the Annual Incentive Plan is to align executive and stockholder interests by providing an incentive to our named executive officers to achieve annual performance goals that support long-term

| Church & Dwight Co.  | 2025 Proxy Statement |     | 57 |

| COMPENSATION DISCUSSION AND ANALYSIS |

stockholder return. The performance goals for the financial metrics are established each year to reflect specific objectives set in our annual budget. For the Strategic Initiatives metric, the Committee establishes specific objective goals under each category and measures the attainment of such goals using a detailed scorecard approach. The Committee considers competitive factors, including competitive market data for total cash compensation, which includes salary and target annual incentive bonus opportunities, in determining the amount of annual incentive award opportunities for our named executive officers. To more accurately reflect the operating performance of our business, the Committee has approved adjustment principles to our reported financial results for the Annual Incentive Plan. Generally, these adjustments are intended to exclude one-timeor unusual items and may have either a favorable or unfavorable impact to the payout on the Annual Incentive Plan. Examples of common adjustments include the elimination of the effect of foreign exchange rates that differed from budgeted amounts and the impact of unplanned acquisitions and divestitures. The actual adjustments that apply can vary from year to year and depend on the one-timeor unusual events occurring within the year. As noted below, in structuring target total direct compensation for our named executive officers, we have referenced the 50 thpercentile of direct compensation of the Compensation Peer Group and survey data. This median has influenced our annual incentive compensation target award levels, although we have from time to time, set target payouts above the median level when we believed that our planned performance was well ahead of the targets of a subset of non-foodcompanies in our Performance Peer Group (the “Corporate Incentive Plan Rating Peer Group”, as described further below). The Committee uses a numerical performance rating system with a range from 0.0 to 1.85 to determine the payout amounts under the Annual Incentive Plan and establishes a Corporate Incentive Plan Rating. At the beginning of each year